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of developing and implementing the program required
by subsection (a)(1)(A). Such offsetting collections
shall be available for obligation subject to the terms
and conditions of the receiving appropriations ac-
count, and shall be deposited in such accounts on a
quarterly basis. Any funds appropriated to the Com-
mission for fiscal years 1994 through 1998 for the
purpose of assigning licenses using random selection
under section 309(i) of the Act shall be used by the
Commission to implement section 309(j) of the Act.
(b) COMPETITIVE BIDDING AUTHORIZATION.—Section
309 of the Act (47 U.S.C. 309) is amended by adding at
the end the following new subsection:
‘‘(j)(1) Subject to the exemptions and conditions set
forth in the other provisions of this subsection, if there are
two or more mutually exclusive applications for any con-
struction permit or initial license which will involve any
use of the electromagnetic spectrum, the Commission shall
have authority to use competitive bidding in the granting
of such construction permit or initial license.
‘‘(2)(A) The Commission shall, within 6 months after
the date of enactment of the Emerging Telecommunications
Technologies Act of 1993 and following public notice and
comment proceedings, issue rules establishing competitive
bidding procedures under this subsection. Such rules shall
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include safeguards to protect the public interest in the use
of the spectrum and shall ensure the opportunity for suc-
cessful participation by small businesses and minority-
owned businesses.
‘‘(B)(i) In the rules issued pursuant to subparagraph
(A), the Commission shall require potential bidders to file
a first-stage application indicating an intent to participate
in the competitive bidding process and containing such
other information as the Commission finds necessary. After
conducting the bidding, the Commission shall require the
wining bidder to file a second-stage application. After deter-
mining that such application is acceptable for filing and
that the winning bidder is qualified as described in clause
(ii), the Commission shall grant the permit or license to
the winning bidder.
‘‘(ii) No permit or license shall be granted to a win-
ning bidder pursuant to clause (i) unless the Commission
determines that such winning bidder is qualified pursuant
to section 308(b) and subsection (a) of this section, on the
basis of the information contained in the first-stage and sec-
ond-stage applications submitted pursuant to clause (i).
‘‘(iii) Each participant in the competitive bidding
process shall be subject to the schedule of charges contained
in section 8.
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‘‘(C) In the rules issued pursuant to subparagraph (A),
the Commission, in addition to other actions it finds nec-
essary to implement competitive bidding fairly and
effectively, shall—
‘‘(i) establish the method of bidding (including
but not limited to sealed bids) and the basis for pay-
ment (such as installment or lump sum payments,
royalties on future income, a combination thereof, or
other reasonable forms of payment specified by the
Commission); and
‘‘(ii) establish other appropriate conditions on
such permits and licenses that serve the public
interest.
‘‘(3)(A)(i) If the Commission decides to use competitive
bidding to grant two or more national, regional, or local
licenses per market in a terrestrial service that will compete
with telephone exchange service provided by a qualified
common carrier, the Commission shall designate one such
license per market as a rural program license.
‘‘(ii) The Commission shall define the geographic
boundaries of the rural program license to correspond to
the geographic area of the telephone exchange service by
which the qualified common carrier became eligible for the
rural program license under subparagraph (E)(ii).