32810 Federal Register / Vol. 66, No. 117 / Monday, June 18, 2001 / Notices

EPA’s TSCA Assistance Information

Service (TSCA Hotline). For information

about obtaining these documents

through the TSCA Hotline, see ‘‘For

General Information Contact’’ listed

under FOR FURTHER INFORMATION

CONTACT.

3. In person. The Agency has

established an official record for this

action under docket control number

OPPTS–42214. The official record

consists of the documents specifically

referenced in this action, any public

comments received during an applicable

comment period, and other information

related to this action, including any

information claimed as Confidential

Business Information (CBI). This official

record includes the documents that are

physically located in the docket, as well

as the documents that are referenced in

those documents. The public version of

the official record does not include any

information claimed as CBI. The public

version of the official record, which

includes printed, paper versions of any

electronic comments submitted during

an applicable comment period, is

available for inspection in the TSCA

Nonconfidential Information Center,

North East Mall Rm. B–607, Waterside

Mall, 401 M St., SW., Washington, DC.

The Center is open from noon to 4 p.m.,

Monday through Friday, excluding legal

holidays. The telephone number for the

Center is (202) 260–7099.

C. How and to Whom Do I Submit

Comments?

You may submit comments through

the mail, in person, or electronically. To

ensure proper receipt by EPA, it is

imperative that you identify docket

control number OPPTS–42214 in the

subject line on the first page of your

response.

1. By mail. Submit your comments to:

Document Control Office (7407), Office

of Pollution Prevention and Toxics

(OPPT), Environmental Protection

Agency, 1200 Pennsylvania Ave., NW.,

Washington, DC 20460.

2. In person or by courier. Deliver

your comments to: OPPT Document

Control Office (DCO) in East Tower Rm.

G–099, Waterside Mall, 401 M St., SW.,

Washington, DC. The DCO is open from

8 a.m. to 4 p.m., Monday through

Friday, excluding legal holidays. The

telephone number for the DCO is (202)

260–7093.

3. Electronically. You may submit

your comments electronically by e-mail

to: oppt.ncic@epa.gov, or mail your

computer disk to the address identified

in this unit. Do not submit any

information electronically that you

consider to be CBI. Electronic comments

must be submitted as an ASCII file

avoiding the use of special characters

and any form of encryption. Comments

and data will also be accepted on

standard disks in WordPerfect 6.1/8.0 or

ASCII file format. All comments in

electronic form must be identified by

docket control number OPPTS–42214.

Electronic comments may also be filed

online at many Federal Depository

Libraries.

D. How Should I Handle CBI

Information that I Want to Submit to the

Agency?

Do not submit any information

electronically that you consider to be

CBI. You may claim information that

you submit to EPA in response to this

document as CBI by marking any part or

all of that information as CBI.

Information so marked will not be

disclosed except in accordance with

procedures set forth in 40 CFR part 2.

In addition to one complete version of

the comment that includes any

information claimed as CBI, a copy of

the comment that does not contain the

information claimed as CBI must be

submitted for inclusion in the public

version of the official record.

Information not marked confidential

will be included in the public version

of the official record without prior

notice. If you have any questions about

CBI or the procedures for claiming CBI,

please consult the technical person

listed under FOR FURTHER INFORMATION

CONTACT.

E. What Should I Consider as I Prepare

My Comments for EPA?

We invite you to provide your views

on the this action, including new

approaches we have not considered,

possible unintended consequences, and

any data or information that you would

like the Agency to consider. You may

find the following suggestions helpful

for preparing your comments:

1. Explain your views as clearly as

possible.

2. Describe any assumptions that you

used.

3. Provide copies of any technical

information and/or data you used that

support your views.

4. Provide specific examples to

illustrate your concerns.

5. Offer alternative ways to improve

this notice.

6. Make sure to submit your

comments by the deadline in this

notice.

7. To ensure proper receipt by EPA,

be sure to identify the docket control

number assigned to this action in the

subject line on the first page of your

response. You may also provide the

name, date, and Federal Register

citation.

II. What Action is the Agency Taking?

EPA is announcing the availability of

a table entitled Sunset Date/Status of

TSCA Section 4 Testing, Reimbursement

and Reporting Requirements and TSCA

Section 4-Triggered 12(b) Export

Notification Requirements. EPA is

making this table available to the public

via the Internet, TSCA hotline, and

TSCA Nonconfidential Information

Center (NCIC or TSCA Docket) so that

the information contained in it will be

available soon after updating by EPA.

For the purposes of complying with

TSCA section 4 and TSCA section 4-

triggered TSCA section 12(b)

requirements, the applicability of a

particular TSCA section 4 action to a

given person is dependent solely on the

final requirements specified for the

chemical substance(s) and mixture(s)

identified in final TSCA section 4 and/

or section 12(b) actions published in the

Federal Register. The table can be

considered current as of the date

specified at the top of the table. For the

status of final TSCA section 4 and TSCA

section 4-triggered section 12(b) actions

taken after this date, consult the Federal

Register. EPA plans to update and repost/reissue this table on an ongoing

basis in order to make the most current

information available to the public in a

timely manner.

List of Subjects

Environmental protection, Chemicals,

Reporting and recordkeeping

requirements.

Dated: June 7, 2001.

Charles M. Auer,

Director, Chemical Control Division, Office

of Pollution Prevention and Toxics.

[FR Doc. 01–15295 Filed 6–15–01; 8:45 am]

BILLING CODE 6560–50–S

FEDERAL COMMUNICATIONS

COMMISSION

[Report No. AUC–01–41–A (Auction No. 41);

DA 01–1400]

Narrowband PCS Spectrum Auction

Scheduled for October 3, 2001;

Comment Sought on Reserve Prices or

Minimum Opening Bids and Other

Auction Procedural Issues

AGENCY: Federal Communications

Commission.

ACTION: Notice.

SUMMARY: This document announces the

auction of 365 Personal

Federal Register / Vol. 66, No. 117 / Monday, June 18, 2001 / Notices 32811

Communications Service (PCS) licenses

in the 900 MHz band (‘‘narrowband

PCS’’) set to begin on October 3, 2001

(Auction No. 41) and seeks comment on

reserve prices or minimum opening bids

and other auction procedural issues.

DATES: Comments are due on or before

June 25, 2001 and reply comments are

due on or before July 2, 2001.

ADDRESSES: An original and four copies

of all pleadings must be filed with the

Commission’s Secretary, Magalie Roman

Salas, Office of the Secretary, Federal

Communications Commission, Room

TW–A325, 445 Twelfth Street, SW.,

Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT:

Howard Davenport, Auctions Attorney,

or Lyle Ishida, Auctions Analyst, at

(202) 418–0660; or Lisa Stover, Project

Manager, at (717) 338–2888.

SUPPLEMENTARY INFORMATION: This is a

summary of the Auction No. 41

Procedures Public Notice released June

12, 2001. The complete text of the

Auction No. 41 Procedures Public

Notice, including the attachment, is

available for inspection and copying

during normal business hours in the

FCC Reference Center (Room CY–A257),

445 12th Street, SW., Washington, DC

20554. The Auction No. 41 Procedures

Public Notice may also be purchased

from the Commission’s copy contractor,

International Transcription Services,

Inc. (ITS, Inc.) 1231 20th Street, NW.,

Washington, DC 20036, (202) 857–3800.

The Auction No. 41 Procedures Public

Notice is also available on the

Commission’s web site at http://

www.fcc.gov..

1. By this Public Notice, the Wireless

Telecommunications Bureau (‘‘Bureau’’)

announces the auction of 365 Personal

Communications Service (PCS) licenses

in the 900 MHz band (‘‘narrowband

PCS’’) set to begin on October 3, 2001

(Auction No. 41). In Auction No. 41,

eight (8) licenses will be offered on a

nationwide basis and seven (7) licenses

will be offered in each of 51 Major

Trading Areas (MTAs), for a total of 357

MTA licenses. The following table

describes the licenses that will be

auctioned:

Channel Number Channel Description Frequency Bands Bandwidth

(kHz)

Nationwide Licenses

18 ............................... One 100 kHz unpaired channel ................................ 940.65—940.75 MHz ................................................ 100 kHz

19 ............................... One 50 kHz/50 kHz paired channel .......................... 901.3—901.35, 930.5—930.55 MHz ......................... 100 kHz

20 ............................... One 50 kHz/50 kHz paired channel .......................... 901.9—901.95, 930.75—930.8 MHz ......................... 100 kHz

21 ............................... One 50 kHz/150 kHz paired channel ........................ 901.5—901.55, 930—930.15 MHz ............................ 200 kHz

22 ............................... One 50 kHz/150 kHz paired channel ........................ 901.6—901.65, 930.15—930.3 MHz ......................... 200 kHz

23 ............................... One 50 kHz/100 kHz paired channel ........................ 901.45—901.5, 940.55—940.65 MHz ....................... 150 kHz

24 ............................... One 50 kHz/100 kHz paired channel ........................ 901.55—901.6, 940.3—940.4 MHz ........................... 150 kHz

25 ............................... One 50 kHz/100 kHz paired channel ........................ 901.85—901.9, 940.45—940.55 MHz ....................... 150 kHz

Nationwide subtotal..................................................................................... .................................................................................... 1,150 kHz

MTA Licenses

26 ............................... One 50 kHz unpaired channel .................................. 901.35—901.4 MHz .................................................. 50 kHz

27 ............................... One 50 kHz unpaired channel .................................. 901.4—901.45 MHz .................................................. 50 kHz

28 ............................... One 50 kHz unpaired channel .................................. 940.4—940.45 MHz .................................................. 50 kHz

29 1 ............................. One 50 kHz/50 kHz paired channel .......................... 901.95—902.0, 930.8—930.85 MHz ......................... 100 kHz

30 ............................... One 50 kHz/100 kHz paired channel ........................ 901.65—901.7, 930.3—930.4 MHz ........................... 150 kHz

31 1 ............................. One 50 kHz/150 kHz paired channel ........................ 901.7—901.75, 930.85—931 MHz ............................ 200 kHz

32 1 ............................. One 12.5 kHz/100 kHz paired channel ..................... 901.8375—901.85, 940.9—941 MHz ........................ 112.5 kHz

MTA Subtotal ...... .................................................................................... .................................................................................... 712.5 kHz

Grand Total ........ .................................................................................... .................................................................................... 1,862.5

kHz

1 NBPCS channels 29, 31, and 32 in MTA002 (Los Angeles-San Diego) will be available subject to protection of incumbent licenses held by

Paging Systems, Inc. under call signs WPOI469, WPOI470, WPOI471, and WPOI472. See In the Matter of License Communications Services,

Inc. et al., Memorandum Opinion and Order, 62 FR 55375 (October 24, 1997).

2. The Balanced Budget Act of 1997

requires the Commission to ‘‘ensure

that, in the scheduling of any

competitive bidding under this

subsection, an adequate period is

allowed * * * before issuance of

bidding rules, to permit notice and

comment on proposed auction

procedures * * *.’’ Consistent with the

provisions of the Balanced Budget Act

and to ensure that potential bidders

have adequate time to familiarize

themselves with the specific rules that

will govern the day-to-day conduct of an

auction, the Commission directed the

Bureau, under its existing delegated

authority, to seek comment on a variety

of auction-specific procedures prior to

the start of each auction. We therefore

seek comment on the following issues

relating to Auction No. 41.

I. Auction Structure

A. Simultaneous Multiple Round

Auction Design

3. We propose to award the licenses

in a single, simultaneous multipleround auction. As described further,

this methodology offers every license for

bid at the same time with successive

bidding rounds in which bidders may

place bids. We seek comment on this

proposal.

B. Upfront Payments and Initial

Maximum Eligibility

4. The Bureau has been delegated

authority and discretion to determine an

appropriate upfront payment for each

license being auctioned, taking into

account such factors as the population

32812 Federal Register / Vol. 66, No. 117 / Monday, June 18, 2001 / Notices

in each geographic license area, and the

value of similar spectrum. As described

further, the upfront payment is a

refundable deposit made by each bidder

to establish eligibility to bid on licenses.

Upfront payments related to the specific

spectrum subject to auction protect

against frivolous or insincere bidding

and provide the Commission with a

source of funds from which to collect

payments owed at the close of the

auction. With these guidelines in mind

for Auction No. 41, we propose to

calculate upfront payments on a licenseby-license basis using the following

formula:

$.00002 * kHz * License Area

Population with a minimum of $1,000

per license.

5. Accordingly, we list all licenses,

including the related license area

population and proposed upfront

payment for each, in Attachment A of

the Auction No. 41 Procedures Public

Notice. We seek comment on this

proposal.

6. We further propose that the amount

of the upfront payment submitted by a

bidder will determine the number of

bidding units on which a bidder may

place bids—this limit is a bidder’s

‘‘maximum initial eligibility.’’ Each

license is assigned a specific number of

bidding units equal to the upfront

payment listed in Attachment A, on a

bidding unit per dollar basis. This

number does not change as prices rise

during the auction. A bidder’s upfront

payment is not attributed to specific

licenses. Rather, a bidder may place

bids on any combination of licenses as

long as the total number of bidding

units associated with those licenses

does not exceed its maximum initial

eligibility. Eligibility cannot be

increased during the auction. Thus, in

calculating its upfront payment amount,

an applicant must determine the

maximum number of bidding units it

may wish to bid on (or hold high bids

on) in any single round, and submit an

upfront payment covering that number

of bidding units. We seek comment on

this proposal.

C. Activity Rules

7. In order to ensure that the auction

closes within a reasonable period of

time, an activity rule requires bidders to

bid actively on a percentage of their

maximum bidding eligibility during

each round of the auction rather than

waiting until the end to participate. A

bidder that does not satisfy the activity

rule will either lose bidding eligibility

in the next round or must use an

activity rule waiver (if any remain).

8. We propose to divide the auction

into three stages, each characterized by

an increased activity requirement. The

auction will start in Stage One. We

propose that the auction generally will

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

Stage One to Stage Two, and from Stage

Two to Stage Three) when the auction

activity level, as measured by the

percentage of bidding units receiving

new high bids, is approximately ten

percent or below for three consecutive

rounds of bidding. However, we further

propose that the Bureau retain the

discretion to change stages unilaterally

by announcement during the auction. In

exercising this discretion, the Bureau

will consider a variety of measures of

bidder activity, including, but not

limited to, the auction activity level, the

percentage of licenses (as measured in

bidding units) on which there are new

bids, the number of new bids, and the

percentage increase in revenue. We seek

comment on these proposals.

9. For Auction No. 41, we propose the

following activity requirements:

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

representing at least 80 percent of its

current bidding eligibility. Failure to

maintain the requisite activity level will

result in a reduction in the bidder’s

bidding eligibility in the next round of

bidding (unless an activity rule waiver

is used). During Stage One, reduced

eligibility for the next round will be

calculated by multiplying the current

round activity by five-fourths (5/4).

Stage Two: In each round of the

second stage, a bidder desiring to

maintain its current eligibility is

required to be active on 90 percent of its

current bidding eligibility. During Stage

Two, reduced eligibility for the next

round will be calculated by multiplying

the current round activity by ten-ninths

(10/9).

Stage Three: In each round of the

third stage, a bidder desiring to

maintain its current eligibility is

required to be active on 98 percent of its

current bidding eligibility. In this final

stage, reduced eligibility for the next

round will be calculated by multiplying

the current round activity by fifty/fortyninths (50/49).

10. We seek comment on these

proposals. If commenters believe that

these activity rules should be changed,

they should explain their reasoning and

comment on the desirability of an

alternative approach. Commenters are

advised to support their claims with

analyses and suggested alternative

activity rules.

D. Activity Rule Waivers and Reducing

Eligibility

11. 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. Activity waivers are principally

a mechanism for auction participants to

avoid the loss of auction eligibility in

the event that exigent circumstances

prevent them from placing a bid in a

particular round.

12. The FCC auction system assumes

that bidders with insufficient activity

would prefer to use an activity rule

waiver (if available) rather than lose

bidding eligibility. Therefore, the

system will automatically apply a

waiver (known as an ‘‘automatic

waiver’’) at the end of any bidding

period where a bidder’s activity level is

below the minimum required unless: (1)

There are no activity rule waivers

available; or (2) the bidder overrides the

automatic application of a waiver by

reducing eligibility, thereby meeting the

minimum requirements.

13. A bidder with insufficient activity

may wish to reduce its bidding

eligibility rather than use an activity

rule waiver. If so, the bidder must

affirmatively override the automatic

waiver mechanism during the bidding

period by using the reduce eligibility

function in the bidding system. In this

case, the bidder’s eligibility is

permanently reduced to bring the bidder

into compliance with the activity rules

as described. Once eligibility has been

reduced, a bidder will not be permitted

to regain its lost bidding eligibility.

14. A bidder may proactively use an

activity rule waiver as a means to keep

the auction open without placing a bid.

If a bidder submits a proactive waiver

(using the proactive waiver function in

the bidding system) during a bidding

period in which no bids or withdrawals

are submitted, the auction will remain

open and the bidder’s eligibility will be

preserved. An automatic waiver invoked

in a round in which there are no new

valid bids or withdrawals will not keep

the auction open.

15. We propose that each bidder in

Auction No. 41 be provided with five

activity rule waivers that may be used

at the bidder’s discretion during the

course of the auction as set forth. We

seek comment on this proposal.

E. Information Relating to Auction

Delay, Suspension, or Cancellation

16. For Auction No. 41, we propose

that, by public notice or by

Federal Register / Vol. 66, No. 117 / Monday, June 18, 2001 / Notices 32813

announcement during the auction, the

Bureau 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 Bureau, 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

Bureau to delay or suspend the auction.

We emphasize that exercise of this

authority is solely within the discretion

of the Bureau, and its use is not

intended to be a substitute for situations

in which bidders may wish to apply

their activity rule waivers. We seek

comment on this proposal.

II. Bidding Procedures

A. Round Structure

17. The Commission will use its

Automated Auction System to conduct

the electronic simultaneous multiple

round auction format for Auction No.

41. In contrast to prior auctions,

Auction No. 41 will be conducted over

the Internet. However, the Bureau’s

wide area network will be available at

the standard charge, as in prior

auctions. Prospective bidders concerned

about their access to the Internet may

want to establish a connection to the

Bureau’s wide area network as a backup.

Full information regarding how to

establish such a connection, and related

charges, will be provided in the public

notice announcing details of auction

procedures. In past auctions, we have

used the timing of bids to select a high

bidder when multiple bidders submit

identical high bids on a license in a

given round. Given that bidders will

access the Internet at differing speeds,

we will not use this procedure in

Auction No. 41. For Auction No. 41, we

propose to use a random number

generator to select a high bidder from

among such bidders. As with prior

auctions, remaining bidders will be able

to submit higher bids in subsequent

rounds. The initial bidding schedule

will be announced in a public notice to

be released at least one week before the

start of the auction, and will be

included in the registration mailings.

The simultaneous multiple round

format will consist of sequential bidding

rounds, each followed by the release of

round results. Details regarding the

location and format of round results will

be included in the same public notice.

18. The Bureau 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 Bureau may

increase or decrease the amount of time

for the bidding rounds and review

periods, or the number of rounds per

day, depending upon the bidding

activity level and other factors. We seek

comment on this proposal.

B. Reserve Price or Minimum Opening

Bid

19. The Balanced Budget Act calls

upon the Commission to prescribe

methods for establishing a reasonable

reserve price or a minimum opening bid

when FCC licenses are subject to

auction unless the Commission

determines that a reserve price or

minimum bid is not in the public

interest. Consistent with this mandate,

the Commission has directed the Bureau

to seek comment on the use of a

minimum opening bid and/or reserve

price prior to the start of each auction.

20. Normally, a reserve price is an

absolute minimum price below, which

an item will not be sold in a given

auction. Reserve prices can be either

published or unpublished. A minimum

opening bid, on the other hand, is the

minimum bid price set at the beginning

of the auction below which no bids are

accepted. It is generally used to

accelerate the competitive bidding

process. Also, the auctioneer often has

the discretion to lower the minimum

opening bid amount later in the auction.

It is also possible for the minimum

opening bid and the reserve price to be

the same amount.

21. In light of the Balanced Budget

Act’s requirements, the Bureau proposes

to establish minimum opening bids for

Auction No. 41. The Bureau believes a

minimum opening bid, which has been

utilized in other auctions, is an effective

bidding tool.

22. Specifically, for Auction No. 41,

the Commission proposes the following

license-by-license formula for

calculating minimum opening bids:

$.00004 * kHz * License Area

Population with a minimum of $1,000

per license.

23. The specific minimum opening

bid for each license available in Auction

No. 41 is set forth in Attachment A of

the Auction No. 41 Procedures Public

Notice. Comment is sought on this

proposal. If commenters believe that

these minimum opening bids will result

in substantial numbers of unsold

licenses, or are not reasonable amounts,

or should instead operate as reserve

prices, they should explain why this is

so, and comment on the desirability of

an alternative approach. Commenters

are advised to support their claims with

valuation analyses and suggested

reserve prices or minimum opening bid

levels or formulas. In establishing the

minimum opening bids, we particularly

seek comment on such factors as the

amount of spectrum being auctioned,

levels of incumbency, the availability of

technology to provide service, the size

of the geographic service areas, issues of

interference with other spectrum bands

and any other relevant factors that could

reasonably have an impact on valuation

of the narrowband PCS spectrum.

Alternatively, comment is sought on

whether, consistent with the Balanced

Budget Act, the public interest would be

served by having no minimum opening

bid or reserve price.

C. Minimum Acceptable Bids and Bid

Increments

24. In each round, eligible bidders

will be able to place bids on a given

license in any of nine different amounts.

The Automated Auction System

interface will list the nine acceptable

bid amounts for each license. Once

there is a standing high bid on a license,

the Automated Auction System will

calculate a minimum acceptable bid for

that license for the following round, as

described. The difference between the

minimum acceptable bid and the

standing high bid for each license will

define the bid increment. The nine

acceptable bid amounts for each license

consist of the minimum acceptable bid

(the standing high bid plus one bid

increment) and additional amounts

calculated using multiple bid

increments (i.e., the second bid amount

equals the standing high bid plus two

times the bid increment, the third bid

amount equals the standing high bid

plus three times the bid increment, etc.).

25. Until a bid has been placed on a

license, the minimum acceptable bid for

that license will be equal to its

minimum opening bid. The additional

bid amounts for licenses that have not

yet received a bid will be calculated

differently, as explained.

26. For Auction No. 41, we propose to

calculate minimum acceptable bids by

using a smoothing methodology, as we

have done in several other auctions. The

smoothing formula calculates minimum

acceptable bids by first calculating a

percentage increment, not to be

confused with the bid increment, for

each license based on a weighted

average of the activity received on each

license in all previous rounds. This

methodology tailors the percentage

increment for each license based on

32814 Federal Register / Vol. 66, No. 117 / Monday, June 18, 2001 / Notices

activity, rather than setting a global

increment for all licenses.

27. In a given round, the calculation

of the percentage increment for each

license is made at the end of the

previous round. The computation is

based on an activity index, which is

calculated as the weighted average of

the activity in that round and the

activity index from the prior round. The

activity index at the start of the auction

(round 0) will be set at 0. The current

activity index is equal to a weighting

factor times the number of new bids

received on the license in the most

recent bidding round plus one minus

the weighting factor times the activity

index from the prior round. The activity

index is then used to calculate a

percentage increment by multiplying a

minimum percentage increment by one

plus the activity index with that result

being subject to a maximum percentage

increment. The Commission will

initially set the weighting factor at 0.5,

the minimum percentage increment at

0.1 (10%), and the maximum percentage

increment at 0.2 (20%).

Equations

Ai = (C * Bi) + ((1–C) * Ai-1)

Ii∂1 = smaller of ((1 + Ai) * N) and M

Xi∂1 = Ii∂1 * Yi

where,

Ai = activity index for the current round

(round i)

C = activity weight factor

Bi = number of bids in the current round

(round i)

Ai-1 = activity index from previous

round (round i-1), A0 is 0

Ii∂1 = percentage increment for the next

round (round i+1)

N = minimum percentage increment or

percentage increment floor

M = maximum percentage increment or

percentage increment ceiling

Xi∂1 = dollar amount associated with

the percentage increment

Yi = high bid from the current round

Under the smoothing methodology,

once a bid has been received on a

license, the minimum acceptable bid for

that license in the following round will

be the high bid from the current round

plus the dollar amount associated with

the percentage increment, with the

result rounded to the nearest thousand

if it is over ten thousand or to the

nearest hundred if it is under ten

thousand.

Examples

License 1

C = 0.5, N = 0.1, M = 0.2

Round 1 (2 new bids, high bid =

$1,000,000)

i. Calculation of percentage increment

for round 2 using the smoothing

formula:

A1 = (0.5 * 2) + (0.5 * 0) = 1

I2 = The smaller of ((1 + 1) * 0.1) = 0.2

or 0.2 (the maximum percentage

increment)

ii. Calculation of dollar amount

associated with the percentage

increment for round 2 (using I2 from

above):

X2 = 0.2 * $1,000,000 = $200,000

iii. Minimum acceptable bid for round

2 = $1,200,000

Round 2 (3 new bids, high bid =

$2,000,000)

i. Calculation of percentage increment

for round 3 using the smoothing

formula:

A2 = (0.5 * 3) + (0.5 * 1) = 2

I3 = The smaller of ((1 + 2) * 0.1) = 0.3

or 0.2 (the maximum percentage

increment)

ii. Calculation of dollar amount

associated with the percentage

increment for round 3 (using I3 from

above):

X3 = 0.2 * $2,000,000 = $400,000

iii. Minimum acceptable bid for round

3 = $2,400,000

Round 3 (1 new bid, high bid =

$2,400,000)

i. Calculation of percentage increment

for round 4 using the smoothing

formula:

A3 = (0.5 * 1) + (0.5 * 2) = 1.5

I4 = The smaller of ((1 + 1.5) * 0.1) =

0.25 or 0.2 (the maximum

percentage increment)

ii. Calculation of dollar amount

associated with the percentage

increment for round 4 (using I4 from

above):

X4 = 0.2 * $2,400,000 = $480,000

iii. Minimum acceptable bid for round

4 = $2,880,000

28. As stated, until a bid has been

placed on a license, the minimum

acceptable bid for that license will be

equal to its minimum opening bid. The

additional bid amounts are calculated

using the difference between the

minimum opening bid times one plus

the minimum percentage increment,

rounded as described, and the minimum

opening bid. That is, I = (minimum

opening bid)(1 + N){rounded}-

(minimum opening bid). Therefore,

when N equals 0.1, the first additional

bid amount will be approximately ten

percent higher than the minimum

opening bid; the second, twenty

percent; the third, thirty percent; etc.

29. In the case of a license for which

the standing high bid has been

withdrawn, the minimum acceptable

bid will equal the second highest bid

received for the license. The additional

bid amounts are calculated using the

difference between the second highest

bid times one plus the minimum

percentage increment, rounded, and the

second highest bid.

30. The Bureau retains the discretion

to change the minimum acceptable bids

and bid increments if it determines that

circumstances so dictate. The Bureau

will do so by announcement in the

Automated Auction System. We seek

comment on these proposals.

D. Information Regarding Bid

Withdrawal and Bid Removal

31. For Auction No. 41, we propose

the following bid removal and bid

withdrawal procedures. Before the close

of a bidding period, a bidder has the

option of removing any bid placed in

that round. By using the remove

selected bids function in the bidding

system, a bidder may effectively

‘‘unsubmit’’ any bid placed within that

round. A bidder removing a bid placed

in the same round is not subject to a

withdrawal payment.

32. Once a round closes, a bidder may

no longer remove a bid. However, in any

subsequent round, a high bidder may

withdraw its standing high bids from

previous rounds using the withdraw

function in the bidding system. A high

bidder that withdraws its standing high

bid from a previous round is subject to

the bid withdrawal payment provisions

of the Commission rules. We seek

comment on these bid removal and bid

withdrawal procedures.

33. In the Part 1 Third Report and

Order, 63 FR 2315 (January 15, 1998)

the Commission explained that allowing

bid withdrawals facilitates efficient

aggregation of licenses and the pursuit

of efficient backup strategies as

information becomes available during

the course of an auction. The

Commission noted, however, that, in

some instances, bidders may seek to

withdraw bids for improper reasons.

The Bureau, therefore, has discretion, in

managing the auction, to limit the

number of withdrawals to prevent any

bidding abuses. The Commission stated

that the Bureau should assertively

exercise its discretion, consider limiting

the number of rounds in which bidders

may withdraw bids, and prevent bidders

from bidding on a particular market if

the Bureau finds that a bidder is abusing

the Commission’s bid withdrawal

procedures.

34. Applying this reasoning, we

propose to limit each bidder in Auction

Federal Register / Vol. 66, No. 117 / Monday, June 18, 2001 / Notices 32815

No. 41 to withdrawing standing high

bids in no more than two rounds during

the course of the auction. To permit a

bidder to withdraw bids in more than

two rounds would likely encourage

insincere bidding or the use of

withdrawals for anti-competitive

purposes. The two rounds in which

withdrawals are utilized will be at the

bidder’s discretion; withdrawals

otherwise must be in accordance with

the Commission’s rules. There is no

limit on the number of standing high

bids that may be withdrawn in either of

the rounds in which withdrawals are

utilized. Withdrawals will remain

subject to the bid withdrawal payment

provisions specified in the

Commission’s rules. We seek comment

on this proposal.

E. Stopping Rule

35. For Auction No. 41, the Bureau

proposes to employ a simultaneous

stopping rule approach. The Bureau has

discretion ‘‘to establish stopping rules

before or during multiple round

auctions in order to terminate the

auction within a reasonable time.’’ A

simultaneous stopping rule means that

all licenses remain open until the first

round in which no new acceptable bids,

proactive waivers, or withdrawals are

received. After the first such round,

bidding closes simultaneously on all

licenses. Thus, unless circumstances

dictate otherwise, bidding would

remain open on all licenses until

bidding stops on every license.

36. However, the Bureau proposes to

retain the discretion to exercise any of

the following options during Auction

No. 41:

i. Utilize a modified version of the

simultaneous stopping rule. The

modified stopping rule would close the

auction for all licenses after the first

round in which no bidder submits a

proactive waiver, withdrawal, or a new

bid on any license on which it is not the

standing high bidder. Thus, absent any

other bidding activity, a bidder placing

a new bid on a license for which it is

the standing high bidder would not

keep the auction open under this

modified stopping rule. The Bureau

further seeks comment on whether this

modified stopping rule should be used

at any time or only in stage three of the

auction.

ii. Keep the 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. The

activity rule, therefore, will apply as

usual, and a bidder with insufficient

activity will either lose bidding

eligibility or use a remaining activity

rule waiver.

iii. Declare that the auction will end

after a specified number of additional

rounds (‘‘special stopping rule’’). If the

Bureau invokes this special stopping

rule, it will accept bids in the specified

final round(s) only for licenses on

which the high bid increased in at least

one of the preceding specified number

of rounds.

37. The Bureau proposes to exercise

these options only in certain

circumstances, such as, for example,

where the auction is proceeding very

slowly, there is minimal overall bidding

activity, or it appears likely that the

auction will not close within a

reasonable period of time. Before

exercising these options, the Bureau is

likely to attempt to increase the pace of

the auction by, for example, 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. We seek

comment on these proposals.

II. Conclusion

38. Comments are due on or before

June 25, 2001, and reply comments are

due on or before July 2, 2001. An

original and four copies of all pleadings

must be filed with the Commission’s

Secretary, Magalie Roman Salas, Office

of the Secretary, Federal

Communications Commission, Room

TW–A325, 445 Twelfth Street, SW.,

Washington, DC 20554, in accordance

with § 1.51 of the Commission’s rules.

In addition, one copy of each pleading

must be delivered to each of the

following locations: (i) The

Commission’s duplicating contractor,

International Transcription Service, Inc.

(ITS), 1231 20th Street, NW.,

Washington, DC 20036; (ii) Office of

Media Relations, Public Reference

Center, Room CY–A257, 445 Twelfth

Street, SW., Washington, DC 20554; (iii)

Rana Shuler, Auctions and Industry

Analysis Division, Wireless

Telecommunications Bureau, Room 4–

A628, 445 Twelfth Street, SW.,

Washington, DC 20554. Comments and

reply comments will be available for

public inspection during regular

business hours in the FCC Public

Reference Room, Room CY–A257, 445

12th Street, SW., Washington, DC

20554.

39. This proceeding has been

designated as a ‘‘permit-but-disclose’’

proceeding in accordance with the

Commission’s ex parte rules. Persons

making oral ex parte presentations are

reminded that memoranda summarizing

the presentations must contain

summaries of the substance of the

presentations and not merely a listing of

the subjects discussed. More than a one

or two sentence description of the views

and arguments presented is generally

required. Other rules pertaining to oral

and written ex parte presentations in

permit-but-disclose proceedings are set

forth in § 1.1206(b) of the Commission’s

rules.

Federal Communications Commission.

Louis J. Sigalos,

Deputy Chief, Auctions and Industry Analysis

Division, WTB.

[FR Doc. 01–15325 Filed 6–15–01; 8:45 am]

BILLING CODE 6712–01–P

FEDERAL COMMUNICATIONS

COMMISSION

Network Reliability and Interoperability

Council

AGENCY: Federal Communications

Commission.

ACTION: Notice of meeting.

SUMMARY: In accordance with the

Federal Advisory Committee Act, this

notice advises interested persons of the

fourth meeting of the Network

Reliability and Interoperability Council

(Council) under its charter renewed as

of January 6, 2000.

DATES: Tuesday, June 26, 2001 at 10:00

a.m. to 12:00 p.m.

ADDRESSES: Federal Communications

Commission, 445 12th St. SW., Room

TW–C305, Washington, DC.

FOR FURTHER INFORMATION CONTACT: Kent

R. Nilsson at 202–418–0845 or TTY

202–418–2989.

SUPPLEMENTARY INFORMATION: The

Council was established by the Federal

Communications Commission to bring

together leaders of the

telecommunications industry and

telecommunications experts from

academic, consumer and other

organizations to identify and

recommend measures that would

enhance network reliability.

The Council will receive reports on,

and discuss, the progress of its focus

groups: Network Reliability, Wireline

Spectrum Management and Integrity,

and Interoperability. The Council may

also discuss such other matters as come

before it at the meeting.

Notice of this meeting was delayed

because a date had to be set that would

not conflict with the changing and

conflicting schedules of NRIC V

members. Future meetings of this

Council will be held on October 30,

2001, and January 4, 2002. At each of

those meetings, the Council will address