[Federal Register: August 31, 2006 (Volume 71, Number 169)]
[Notices]
[Page 51822-51827]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr31au06-51]
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FEDERAL COMMUNICATIONS COMMISSION
[Report No. AUC-06-68-A (Auction No. 68); DA 06-997; AU Docket No. 06-
101]
Auction of FM Broadcast Construction Permits Scheduled for
January 10, 2007; Comments Sought on Competitive Bidding Procedures for
Auction No. 68
AGENCY: Federal Communications Commission.
ACTION: Notice.
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SUMMARY: This document announces the auction of nine FM broadcast
construction permits scheduled to commence on January 10, 2007 (Auction
No. 68). This document also seeks comments on reserve prices or minimum
opening bids and other procedures for Auction No. 68.
DATES: Comments are due on or before September 6, 2006 and reply
comments are due on or before September 13, 2006.
ADDRESSES: Comments and reply comments must be identified by AU Docket
No. 06-101; DA 06-997. The Bureaus request that a copy of all comments
and reply comments be submitted electronically to the following
address: auction68@fcc.gov. In addition, comment and reply comments may
be submitted by any of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
Federal Communications Commission's Web site: http://www.fcc.gov/cgb/ecfs/.
Follow the instructions for submitting comments.
People with Disabilities: Contact the FCC to request
reasonable accommodations (accessible format documents, sign language
interpreters,
[[Page 51823]]
CART, etc.) by e-mail: FCC504@fcc.gov or phone: 202-418-0530 or TTY:
202-418-0432.
Paper Filers: Parties who choose to file by paper must
file an original and four copies of each filing. Filings can be sent by
hand or messenger delivery, by commercial overnight courier, or by
first-class or overnight U.S. Postal Service mail (although the Bureaus
continue to experience delays in receiving U.S. Postal Service mail).
All filings must be addressed to the Commission's Secretary, Attn: WTB/
ASAD, Office of the Secretary, Federal Communications Commission.
The Commission's contractor will receive hand-delivered or
messenger-delivered paper filings for the Commission's Secretary at 236
Massachusetts Avenue, NE., Suite 110, Washington, DC 20002. The filing
hours at this location are 8 a.m. to 7 p.m. All hand deliveries must be
held together with rubber bands or fasteners. Commercial overnight mail
(other than U.S. Postal Service Express Mail and Priority Mail) must be
sent to 9300 East Hampton Drive, Capitol Heights, MD 20743.
U.S. Postal Service first-class, Express, and Priority
mail should be addressed to 445 12th Street, SW., Washington, DC 20554.
FOR FURTHER INFORMATION CONTACT: Wireless Telecommunications Bureau,
Auctions and Spectrum Access Division, for legal questions: Lynne Milne
at (202) 418-0660. For general auction questions: Linda Sanderson or
Debbie Smith at (717) 338-2888. Media Bureau, Audio Division, for
service questions: Lisa Scanlan or Tom Nessinger at (202) 418-2700.
SUPPLEMENTARY INFORMATION: This is a summary of the Auction No. 68
Comment Public Notice released on August 24, 2006. The complete text of
the Auction No. 68 Comment Public Notice, including attachments and
related Commission documents, is available for public inspection and
copying from 8 a.m. to 4:30 p.m. Monday through Thursday or from 8 a.m.
to 11:30 a.m. on Friday at the FCC Reference Information Center,
Portals II, 445 12th Street, SW., Room CY-A257, Washington, DC 20554.
The Auction No. 68 Comment Public Notice and related Commission
documents also may be purchased from the Commission's duplicating
contractor, Best Copy and Printing, Inc. (BCPI), Portals II, 445 12th
Street, SW., Room CY-B402, Washington, DC 20554, telephone 202-488-
5300, facsimile 202-488-5563, or you may contact BCPI at its Web site:
http://www.BCPIWEB.com. When ordering documents from BCPI, please
provide the appropriate FCC document number for example, DA 06-997. The
Auction No. 68 Comment Public Notice and related documents also are
available on the Internet at the Commission's Web site:http://wireless.fcc.gov/auctions/68/
.
I. Constuction Permits To Be Offered in Auction No. 68
1. The Media and Wireless Telecommunications Bureaus (Bureaus)
announce that Auction No. 68 is composed of nine construction permits
in the FM broadcast service as listed in Attachment A of the Auction
No. 68 Comment Public Notice. The construction permits to be auctioned
are unsold FM construction permits from Auction Nos. 37 and 62, which
closed on November 23, 2004 and January 31, 2006, respectively.
2. These nine construction permits are vacant FM allotments,
reflecting FM channels assigned to the Table of FM Allotments, 47 CFR
73.202(b), pursuant to the Commission's established rulemaking
procedures, designated for use in the indicated community. Pursuant to
the policies established in the Broadcast Auction First Report and
Order, 63 FR 48615, September 11, 1998, applicants may apply for any
vacant FM allotment specified in Attachment A of the Auction No. 68
Comment Public Notice. Applications specifying the same FM allotment
will be considered mutually exclusive and, thus, the construction
permit for that FM allotment will be awarded by competitive bidding
procedures. Once mutual exclusivity exists for auction purposes, even
if only one applicant for the same construction permit in Auction No.
68 submits an upfront payment, that applicant is required to submit a
bid in order to obtain the construction permit. Any applicant that
submits a short-form application that is accepted for filing but fails
to timely submit an upfront payment will retain its status as an
applicant in Auction No. 68 and will remain subject to the Commission's
anti-collusion rule, 47 CFR 1.2105(c), but, having purchased no bidding
eligibility, will not be eligible to bid.
II. Bureaus Seek Comment on Auction Procedures
3. Consistent with the provisions of section 309(j)(3) of the
Communications Act of 1934, as amended, 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
Bureaus seek comment on the following issues relating to Auction No.
68.
A. Auction Structure
i. Simultaneous Multiple Round Auction Design
4. The Bureaus propose to award all construction permits included
in Auction No. 68 in a simultaneous multiple-round (SMR) auction. This
type of auction offers every construction permit for bid at the same
time and consists of successive bidding rounds in which eligible
bidders may place bids on individual construction permits. A bidder may
bid on, and potentially win, any number of construction permits.
Typically, bidding remains open on all construction permits until
bidding stops on every construction permit, unless a modified stopping
rule is invoked. The Bureaus seek comment on this proposal.
ii. Round Structure
5. The Commission will conduct Auction No. 68 over the Internet.
Alternatively, telephonic bidding also will be available.
6. The initial bidding schedule will be announced in a public
notice to be released at least one week before the start of the
auction. The simultaneous multiple-round format will consist of
sequential bidding rounds, each followed by the release of round
results.
7. The Bureaus have the 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 Bureaus 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. The
Bureaus seek comment on this proposal.
iii. Stopping Rule
8. The Bureaus have discretion to establish stopping rules before
or during multiple round auctions in order to terminate the auction
within a reasonable time. For Auction No. 68, the Bureaus propose to
employ a simultaneous stopping rule approach. A simultaneous stopping
rule means that all construction permits remain available for bidding
until bidding closes simultaneously on all construction permits. More
specifically, bidding will close simultaneously on all construction
permits after the first round in which no bidder submits any new bids,
or applies a proactive waiver. Thus, unless circumstances dictate
otherwise, bidding will remain open on all construction permits until
bidding stops on every construction permit.
9. The Bureaus propose to retain the discretion to exercise any of
the
[[Page 51824]]
following options during Auction No. 68: (a) Use a modified version of
the simultaneous stopping rule, based on the failure to submit during a
prior round of a waiver or a new bid by a bidder who is not a
provisionally winning bidder for that construction permit, as described
in the Auction No. 68 Comment Public Notice; (b) keep the auction open
even if no bidder submits any new bids or applies a waiver; and (c)
declare that the auction will end after a specified number of
additional rounds (special stopping rule).
10. The Bureaus propose to exercise these options only in certain
circumstances, 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 Bureaus are 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 minimum acceptable bid
percentage for the limited number of construction permits on which
there is still a high level of bidding activity. The Bureaus seek
comment on these proposals.
iv. Information Relating to Auction Delay, Suspension, or Cancellation
11. For Auction No. 68, the Bureaus propose that, by public notice
or by announcement during the auction, the Bureaus 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 efficient conduct of competitive bidding. In
such cases, the Bureaus, in their 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 Bureaus to delay or
suspend the auction. The Bureaus emphasize that exercise of this
authority is solely within the discretion of the Bureaus, and its use
is not intended to be a substitute for situations in which bidders may
wish to apply their activity rule waivers. The Bureaus seek comment on
this proposal.
B. Bidding Procedures
i. Upfront Payments and Bidding Eligibility
12. The Bureaus have delegated authority and discretion to
determine an appropriate upfront payment for each FM construction
permit being auctioned, taking into account such factors as the
efficiency of the auction process and the potential value of similar
spectrum. The upfront payment is a refundable deposit made by each
bidder to establish eligibility to bid on construction permits. 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, the Bureaus propose the
schedule of upfront payments for each construction permit as set forth
in Attachment A of the Auction No. 68 Comment Public Notice. The
Bureaus seek comment on this proposal.
13. The Bureaus further propose that the amount of the upfront
payment submitted by a bidder will determine the maximum number of
bidding units on which a bidder may place bids. This limit is a
bidder's initial bidding eligibility. Each FM construction permit is
assigned a specific number of bidding units equal to the upfront
payment listed in Attachment A of the Auction No. 68 Comment Public
Notice, on a bidding unit per dollar basis. Bidding units for a given
construction permit do not change as prices rise during the auction. A
bidder's upfront payment is not attributed to specific construction
permits. Rather, a bidder may place bids on any combination of
construction permits that it selected in its short form application
(FCC Form 175), as long as the total number of bidding units associated
with those construction permits does not exceed the bidder's current
eligibility. In order to bid on a construction permit, qualified
bidders must have an eligibility level that meets the number of bidding
units assigned to that construction permit. Eligibility cannot be
increased during the auction; it can only remain the same or decrease.
Thus, in calculating its upfront payment amount, an applicant must
determine the maximum number of bidding units it may wish to bid on (or
hold provisionally winning bids on) in any single round, and submit an
upfront payment amount covering that total number of bidding units.
Provisionally winning bids are bids that would become final winning
bids if the auction were to close in that given round. The Bureaus seek
comment on this proposal.
ii. Activity Rule
14. In order to ensure that an auction closes within a reasonable
period of time, an activity rule requires bidders to bid actively
throughout the auction, rather than wait until late in the auction
before participating. A bidder's activity in a round will be the sum of
the bidding units associated with any construction permits upon which
it places bids during the current round and the bidding units
associated with any construction permits for which it holds
provisionally winning bids. Bidders are required to be active on a
specific percentage of their current bidding eligibility during each
round of the auction. Failure to maintain the requisite activity level
will result in the use of an activity rule waiver, if any remain, or a
reduction in the bidder's eligibility, possibly curtailing or
eliminating the bidder's ability to place bids in the auction.
15. The Bureaus propose a single stage auction with the following
activity requirement: In each round of the auction, a bidder desiring
to maintain its eligibility to participate in the auction is required
to be active on one hundred (100) percent of its 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).
16. The Bureaus seeks comment on this proposal. Commenters that
believe this activity rule should be modified 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.
iii. Activity Rule Waivers and Reducing Eligibility
17. Use of an activity rule waiver preserves the bidder's
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 construction permit.
Activity rule waivers can be either proactive or automatic and are
principally a mechanism for auction participants to avoid the loss of
bidding eligibility in the event that exigent circumstances prevent
them from placing a bid in a particular round.
18. The FCC Auction System assumes that a bidder that does not meet
the activity requirement would prefer to apply an activity rule waiver
(if available) rather than lose bidding eligibility. Therefore, the
system will automatically apply a waiver at the end of any bidding
round where a bidder's activity level is below the minimum required
unless: (1) The bidder has no activity rule waivers available; or (2)
the bidder overrides the automatic application of a waiver by reducing
[[Page 51825]]
eligibility, thereby meeting the minimum requirement. If a bidder has
no waivers remaining and does not satisfy the required activity level,
its eligibility will be permanently reduced, possibly curtailing or
eliminating the bidder's ability to place additional bids in the
auction.
19. A bidder with insufficient activity may wish to reduce its
bidding eligibility rather than use an activity rule waiver. If so, the
bidder must affirmatively override the automatic waiver mechanism
during the bidding round by using the reduce eligibility function in
the FCC Auction System. In this case, the bidder's eligibility is
permanently reduced to bring the bidder into compliance with the
activity rules as described above. Reducing eligibility is an
irreversible action. Once eligibility has been reduced, a bidder will
not be permitted to regain its lost bidding eligibility, even if the
round has not yet closed.
20. A bidder may apply an activity rule waiver proactively as a
means to keep the auction open without placing a bid. If a bidder
proactively applies an activity rule waiver (using the apply waiver
function in the FCC Auction System) during a bidding round in which no
bids are submitted, the auction will remain open and the bidder's
eligibility will be preserved. An automatic waiver applied by the FCC
Auction System in a round in which there are no new bids will not keep
the auction open. A bidder cannot submit a proactive waiver after
submitting a bid in a round, and submitting a proactive waiver will
preclude a bidder from placing any bids in that round. Applying a
waiver is irreversible; once a proactive waiver is submitted, that
waiver cannot be unsubmitted, even if the round has not yet closed.
21. The Bureaus propose that each bidder in Auction No. 68 be
provided with three activity rule waivers that may be used at the
bidder's discretion during the course of the auction. The Bureaus seek
comment on this proposal.
iv. Reserve Price or Minimum Opening Bid
22. The Bureaus seek comment on the use of a minimum opening bid
amount and/or a reserve price in Auction No. 68. 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 amount, 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, however, has the discretion to
lower the minimum opening bid amount during the course of the auction.
It is also possible for the minimum opening bid amount and the reserve
price to be the same amount.
23. The Bureaus propose to establish minimum opening bid amounts
for Auction No. 68. The Bureaus believe a minimum opening bid amount,
which has been used in other auctions, is an effective bidding tool for
accelerating the competitive bidding process.
24. For Auction No. 68, the proposed minimum opening bids were
determined by taking into account various factors related to the
efficiency of the auction and the potential value of the spectrum,
including the type of service and class of facility offered, market
size, population covered by the proposed FM broadcast facility,
industry cash flow data and recent broadcast transactions. The specific
minimum opening bid for each construction permit available in Auction
No. 68 is set forth in Attachment A of the Auction No. 68 Comment
Public Notice. The Bureaus seek comment on this proposal.
25. If commenters believe that these minimum opening bid amounts
will result in unsold construction permits, 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 amount levels or formulas. In establishing the minimum opening bid
amounts, the Bureaus particularly seek comment on such factors as the
potential value of the spectrum being auctioned, including the type of
service and class of facility offered, market size, population covered
by the proposed FM broadcast facility and other relevant factors that
could reasonably have an impact on valuation of the broadcast spectrum.
The Bureaus also seek comment on whether, consistent with section
309(j), the public interest would be served by having no minimum
opening bid amount or reserve price.
v. Bid Amounts
26. The Bureaus propose that, in each round, eligible bidders be
able to place bids on a given construction permit in any of nine
different amounts, if a bidder has sufficient eligibility to place a
bid on that construction permit. Under this proposal, the FCC Auction
System interface will list the nine acceptable bid amounts for each
construction permit.
27. The first of the nine acceptable bid amounts is called the
minimum acceptable bid amount. The minimum acceptable bid amount for a
construction permit will be equal to its minimum opening bid amount
until there is a provisionally winning bid for the construction permit.
After there is a provisionally winning bid for a construction permit,
the minimum acceptable bid amount will be calculated by multiplying the
provisionally winning bid amount times one plus the minimum acceptable
bid percentage. If, for example, the minimum acceptable bid percentage
is 10 percent, the minimum acceptable bid amount will equal
(provisionally winning bid amount) * (1.10), rounded.
28. The eight additional bid amounts are calculated using the
minimum acceptable bid amount and a bid increment percentage, which
need not be the same as the percentage used to calculate the minimum
acceptable bid amount. The first additional acceptable bid amount
equals the minimum acceptable bid amount times one plus the bid
increment percentage, rounded. If, for example, the bid increment
percentage is 10 percent, the calculation is (minimum acceptable bid
amount) * (1 + 0.10), rounded, or (minimum acceptable bid amount) *
1.10, rounded; the second additional acceptable bid amount equals the
minimum acceptable bid amount times one plus two times the bid
increment percentage, rounded, or (minimum acceptable bid amount) *
1.20, rounded; the third additional acceptable bid amount equals the
minimum acceptable bid amount times one plus three times the bid
increment percentage, rounded, or (minimum acceptable bid amount) *
1.30, rounded; etc. The Bureaus will round the result using our
standard rounding procedures.
29. For Auction No. 68, the Bureaus propose to use a minimum
acceptable bid percentage of 10 percent. This means that the minimum
acceptable bid amount for a construction permit will be approximately
10 percent greater than the provisionally winning bid amount for the
construction permit. The Bureaus also propose to use a bid increment
percentage of 10 percent to calculate the eight additional acceptable
bid amounts.
30. The Bureaus retain the discretion to change the minimum
acceptable bid amounts, the parameters of the formula to determine the
percentage increment, and the bid increment percentage if it determines
that circumstances so dictate. The Bureaus will do so by
[[Page 51826]]
announcement in the FCC Auction System during the auction. The Bureaus
seek comment on these proposals.
vi. Provisionally Winning Bids
31. Provisionally winning bids are bids that would become final
winning bids if the auction were to close in that given round. At the
end of a bidding round, a provisionally winning bid amount for each
construction permit will be determined based on the highest bid amount
received for the construction permit. In the event of identical high
bid amounts being submitted on a construction permit in a given round
(i.e., tied bids), the Bureaus will use a random number generator to
select a single provisionally winning bid from among the tied bids.
(Each bid is assigned a random number, and the tied bid with the
highest random number wins the tiebreaker.) The remaining bidders, as
well as the provisionally winning bidder, can submit higher bids in
subsequent rounds. However, if the auction were to end with no other
bids being placed, the winning bidder would be the one that placed the
selected provisionally winning bid. If any bids are received on the
construction permit in a subsequent round, the provisionally winning
bid again will be determined by the highest bid amount received for the
construction permit.
32. A provisionally winning bid will remain the provisionally
winning bid until there is a higher bid on the same construction permit
at the close of a subsequent round. Bidders are reminded that
provisionally winning bids count toward activity for purposes of the
activity rule.
vii. Bid Removal and Bid Withdrawal
33. For Auction No. 68, the Bureaus propose the following bid
removal procedures. Before the close of a bidding round, a bidder has
the option of removing any bid placed in that round. By removing
selected bids in the FCC Auction 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 any penalties. Once a round
closes, a bidder may no longer remove a bid.
34. 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 construction permits
and the pursuit of backup strategies as information becomes available
during the course of an auction. Given the limited number and wide
geographic dispersion of the permits available in this auction,
however, these rationales are less compelling. The Commission also
noted that, in some instances, bidders may seek to withdraw bids for
improper reasons. The permits being offered in Auction No. 68 are, in
fact, permits for which provisionally winning bids were withdrawn in
previous FM Broadcast auctions, in some cases in successive auctions by
the same bidders. The Bureaus have discretion, in managing the auction,
to limit the number of withdrawals to prevent any bidding abuses. The
Commission stated that the Bureaus should assertively exercise their
discretion, consider limiting the number of rounds in which bidders may
withdraw bids, and prevent bidders from bidding on a particular
construction permit if the Bureaus find that a bidder is abusing the
Commission's bid withdrawal procedures.
35. Applying this reasoning, the Bureaus propose that bidders in
Auction No. 68 not be permitted to withdraw bids placed in any round
after it has closed. To permit bidders further opportunities to
withdraw bids may encourage insincere bidding or the use of withdrawals
for anti-competitive purposes. Moreover, given that the permits offered
in Auction No. 68 have already been subject to bid withdrawals in at
least one auction, our paramount concern is that the permits be awarded
and broadcast service be initiated to the public in the communities
listed. The Bureaus seek comment on this proposal.
C. Due Diligence
36. Potential bidders are solely responsible for investigating and
evaluating all technical and market place factors that may have a
bearing on the value of the broadcast facilities in this auction. 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 permittee in the
broadcast service, subject to certain conditions and regulations. An
FCC auction does not constitute an endorsement by the FCC of any
particular service, technology, or product, nor does an FCC
construction permit or license constitute a guarantee of business
success. Applicants should perform their individual due diligence
before proceeding as they would with any new business venture. In
particular, potential bidders are strongly encouraged to review all
underlying Commission orders, such as the specific Report and Order
amending the FM Table of Allotments and allotting the FM channel(s) on
which they plan to bid. Reports and Orders adopted in FM allotment
rulemaking proceedings often include anomalies such as site
restrictions or expense reimbursement requirements. Additionally,
potential bidders should perform technical analyses sufficient to
assure them that, should they prevail in competitive bidding for a
given FM construction permit, they will be able to build and operate
facilities that will fully comply with the Commission's technical and
legal requirements. Applicants are strongly encouraged to inspect any
prospective transmitter sites located in, or near, the service area for
which they plan to bid, and also to familiarize themselves with the
Commission's rules regarding the National Environmental Policy Act.
37. Potential bidders are strongly encouraged to conduct their own
research prior to Auction No. 68 in order to determine the existence of
pending proceedings, including pending rulemaking proceedings that
might affect their decisions regarding participation in the auction.
Participants in Auction No. 68 are strongly encouraged to continue such
research during the auction.
D. Post-Auction Procedures
i. Default and Disqualification
38. Any winning bidder that defaults or is disqualified after the
close of an 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) is liable for a default payment under 47 CFR
1.2104(g)(2). This payment consists of a deficiency payment, equal to
the difference between the amount of the bidder's bid and the amount of
the winning bid the next time a construction permit covering the same
spectrum is won in an auction, plus an additional payment equal to a
percentage of the defaulter's bid or of the subsequent winning bid,
whichever is less. Until recently this additional payment for most
auctions has been set at 3 percent of the defaulter's bid or of the
subsequent winning bid, whichever is less.
39. On January 24, 2006, the Commission released the Commercial
Spectrum Enhancement Act Report and Order, 71 FR 6214, February 7,
2006, in which it modified Sec. 1.2104(g)(2) by, inter alia,
increasing the 3 percent limit on the additional default payment for
non-combinatorial auctions to 20 percent. Under the modified rule, the
Commission will, in advance of each auction, establish an additional
default
[[Page 51827]]
payment for that auction of 3 percent up to a maximum of 20 percent.
The level of this payment in each case will be based on the nature of
the service and the inventory of the construction permits being
offered.
40. As noted in this rulemaking order, defaults weaken the
integrity of the auctions process and impede the deployment of service
to the public, and an additional default payment of more than the
previous 3 percent will be more effective in deterring defaults.
Accordingly, for Auction No. 68, the Bureaus propose an additional
default payment of 10 percent of the relevant bid. The Bureaus seek
comment on this proposal.
III. Conclusion
41. Comments are due on or before September 6, 2006, and reply
comments are due on or before September 13, 2006. All filings related
to the auction of FM broadcast construction permits must refer to AU
Docket No. 06-101. Comments may be submitted using the Commission's
Electronic Comment Filing System (ECFS) or by filing paper copies. The
Bureaus encourage interested parties to file electronically. The
Bureaus also request that all comments and reply comments be filed
electronically to the following address: auction68@fcc.gov. In
addition, commenters should format any attachments to electronic mail
as Adobe[supreg] Acrobat[supreg] (pdf) or Microsoft[supreg] Word
documents.
42. 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 47 CFR 1.1206(b).
Federal Communications Commission.
William W. Huber,
Associate Chief, Auctions and Spectrum Access Division, WTB.
[FR Doc. E6-14527 Filed 8-30-06; 8:45 am]
BILLING CODE 6712-01-P