[Federal Register Volume 73, Number 178 (Friday, September 12, 2008)]
[Notices]
[Pages 53020-53025]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-21350]
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FEDERAL COMMUNICATIONS COMMISSION
[AU Docket No. 08-22; Report No. AUC-08-85-F (Auction 85); DA 08-1944]
Auction of LPTV and TV Translator Digital Companion Channels
Scheduled for November 5, 2008; Notice and Filing Requirements, Minimum
Opening Bids, Upfront Payments and Other Procedures for Auction 85
AGENCY: Federal Communications Commission.
ACTION: Notice.
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SUMMARY: This document announces the procedures and minimum opening
bids for the upcoming auction of LPTV and TV Translator Digital
Companion Channels (Auction 85). This document is intended to
familiarize prospective bidders with the procedures and minimum opening
bids for the auction.
DATES: Auction 85 is scheduled to begin on November 5, 2008.
FOR FURTHER INFORMATION CONTACT: Wireless Telecommunications Bureau,
Auctions Spectrum and Access Division: For legal questions: Lynne Milne
at (202) 418-0660. For general auction questions: Roy Knowles or Linda
Sanderson at (717) 338-2868. Media Bureau, Video Division: For
licensing information and service rule questions: Shaun Maher (legal)
or Hossein Hashemzadeh (engineering) at (202) 418-1600. To request
materials in accessible formats (Braille, large print, electronic files
or audio format) for people with disabilities, send an e-mail to
[email protected] or call the Consumer and Governmental Affairs Bureau at
(202) 418-0530 or (202) 418-0432 (TTY).
SUPPLEMENTARY INFORMATION: This is a summary of the Auction 85
Procedures Public Notice, which was released on September 2, 2008. The
complete texts of the Auction 85 Procedures Public Notice including
attachments, as well as related Commission documents, are available for
public inspection and copying from 8 a.m. to 4:30 p.m. ET Monday
through Thursday and from 8 a.m. to 11:30 a.m. ET on Fridays in the FCC
Reference Information Center, 445 12th Street, SW., Room CY-A257,
Washington, DC 20554. The Auction 85 Procedures Public Notice and
related Commission documents may also 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 Web site:
http://www.BCPIWEB.com. The Auction 85 Procedures Public Notice and
related documents are also available on the Internet at the
Commission's Web site: http://wireless.fcc.gov/auctions/85/.
I. General Information
A. Introduction
1. The Wireless Telecommunications Bureau and the Media Bureau
(collectively, the Bureaus) announce the procedures and minimum opening
bid amounts for the upcoming auction of construction permits for Low
Power Television (LPTV), including Class A Television (TV), and TV
Translator digital companion channels. This auction, which is
designated Auction 85, is scheduled to commence on November 5, 2008. On
July 17, 2008, in accordance with Section 309(j)(3) of the
Communications Act of 1934, as amended, the Bureaus released a public
notice seeking comment on minimum opening bid amounts and the
procedures to be used in Auction 85. In addition, the Bureaus proposed
an additional settlement period for applicants to use engineering
solutions, dismissal requests or settlements to resolve conflicts among
their digital companion channel engineering proposals. No comments were
submitted in response to the Auction 85 Comment Public Notice, 73 FR
43230, July 24, 2008.
i. Construction Permits To Be Offered in Auction 85
2. Auction 85 will offer 44 construction permits for specified
LPTV, including Class A TV, and TV Translator digital companion
channels. Participation in this auction will be limited to those
applicants for construction permits identified in Attachment A of the
Auction 85 Procedures Public Notice.
3. Attachment A specifies the MX Groups accompanied by their
respective minimum opening bids and upfront payments. Attachment A also
lists the names of the applicants for construction permits in each MX
Group. For each MX Group identified in Attachment A, competing
applications were filed during the relevant filing period. All
applications within an identified MX Group are directly mutually
exclusive with one another, and therefore, a single construction permit
will be auctioned for each MX Group identified in Attachment A.
B. Rules and Disclaimers
i. Relevant Authority
4. Prospective applicants must familiarize themselves thoroughly
with the Commission's general competitive bidding rules, including
recent amendments and clarifications, as well as Commission decisions
in proceedings regarding competitive bidding procedures, application
requirements, and obligations of Commission licensees. Broadcasters
should also familiarize themselves with the Commission's rules relating
to the television broadcast service contained in 47 CFR 73.601-73.699
and 73.1001-73.4280. Prospective applicants must also be familiar with
the rules relating to competitive bidding proceedings contained in 47
CFR 1.2001-1.2112 and broadcast auctions contained in 47 CFR 73.3555,
73.5000-73.5009. Prospective bidders must also be thoroughly familiar
with the procedures, terms and conditions (collectively, terms)
contained in the Auction 85 Procedures Public Notice and the
Commission's decisions in proceedings regarding competitive bidding
procedures, application requirements, and obligations of Commission
licensees.
ii. Prohibition of Collusion
5. Applicants for Auction 85 are reminded that they remain subject
to the Commission's anti-collusion rule until the down payment deadline
after the auction, which will be announced in a future public notice.
This prohibition applies to all applicants listed in Attachment A
regardless of whether such applicants become qualified bidders or
actually bid. Applicants are also reminded that, for purposes of this
prohibition, 47 CFR 1.2105(c)(7)(i) defines applicant as including all
officers and directors of the entity submitting a short-form
application to participate in the auction, all controlling interests of
that entity, as well as all holders of partnership and other ownership
interests and any stock interest amounting to 10 percent or more of the
entity, or outstanding stock, or outstanding voting stock of the entity
submitting a short-form application.
6. Parties subject to the anti-collusion rule are prohibited from
communicating with each other about bids, bidding strategies, or
settlements unless such applicants have identified each other on their
short-form applications (FCC Form 175) as parties with whom they have
entered into agreements pursuant to 47 CFR 1.2105(a)(2)(viii). Thus,
competing applicants must affirmatively avoid all communications with
each other that affect or, in their reasonable assessment,
[[Page 53021]]
have the potential to affect, bids or bidding strategy, which may
include communications regarding the post-auction market structure. The
anti-collusion rule prohibits not only a communication about an
applicant's own bids or bidding strategy, but also a communication of
another applicant's bids or bidding strategy. While the anti-collusion
rule provisions do not prohibit business negotiations among auction
applicants, applicants must remain vigilant so as not to communicate
directly or indirectly information that affects, or could affect, bids
or bidding strategy, or the negotiation of settlement agreements.
7. The Bureaus also remind Auction 85 applicants that they must not
communicate indirectly to other applicants about bids or bidding
strategy. Accordingly, Auction 85 applicants are encouraged not to use
the same individual as an authorized bidder. A violation of the anti-
collusion rule could occur if an individual acts as the authorized
bidder for two or more competing applicants, and conveys information
concerning the substance of bids or bidding strategies between such
applicants. Also, if the authorized bidders are different individuals
employed by the same organization (e.g., law firm or engineering firm
or consulting firm), a violation similarly could occur. In such a case,
at a minimum, applicants should certify on their applications that
precautionary steps have been taken to prevent communication between
authorized bidders and that applicants and their bidding agents will
comply with the anti-collusion rule. Moreover, the Commission has found
a violation of the anti-collusion rule where an applicant used the
Commission's bidding system to disclose its bidding strategy in a
manner that explicitly invited other auction participants to cooperate
and collaborate in specific markets, and has placed auction
participants on notice that the use of its bidding system to disclose
market information to competitors will not be tolerated and will
subject bidders to sanctions. Applicants are cautioned that the
Commission remains vigilant about prohibited communications taking
place in other situations. For example, the Commission has warned that
prohibited communications concerning bids and bidding strategies may
include communications regarding capital calls or requests for
additional funds in support of bids or bidding strategies to the extent
such communications convey information concerning the bids and bidding
strategies directly or indirectly.
8. Applicants are also reminded that, regardless of compliance with
the Commission's rules, they remain subject to the antitrust laws,
which are designed to prevent anticompetitive behavior in the
marketplace. Compliance with the disclosure requirements of the
Commission's anti-collusion rule will not insulate a party from
enforcement of the antitrust laws.
9. If an applicant makes or receives a communication that appears
to violate the anti-collusion rule, it must report such communication
in writing to the Commission immediately and in no case later than five
business days after the communication occurs. The Commission recently
clarified that each applicant's obligation to report any such
communication continues beyond the five-day period after the
communication is made, even if the report is not made within the five-
day period.
10. In addition, 47 CFR 1.65 of the Commission's rules requires an
applicant to maintain the accuracy and completeness of information
furnished in its pending application and to notify the Commission
within 30 days of any substantial change that may be of decisional
significance to that application. Thus, 47 CFR 1.65 requires an auction
applicant to notify the Commission of any substantial change to the
information or certifications included in its pending short-form
application. Applicants are therefore required by 47 CFR 1.65 to report
to the Commission any communications they have made to or received from
another applicant after the short-form application filing deadline that
affect or have the potential to affect bids or bidding strategy unless
such communications are made to or received from parties to agreements
identified under 47 CFR 1.2105(a)(2)(viii).
iii. Due Diligence
11. Potential applicants are reminded that they are solely
responsible for investigating and evaluating all technical and
marketplace factors that may have a bearing on the value of the
broadcast facilities they are seeking in this auction. Applicants
should perform their individual due diligence before proceeding as they
would with any new business venture.
12. Applicants are strongly encouraged to conduct their own
research prior to Auction 85 in order to determine the existence of
pending administrative or judicial proceedings that might affect their
decisions regarding participation in the auction. Potential bidders for
any new television facility in this auction are also reminded that full
service television stations are in the process of converting from
analog to digital operation and that stations may have pending
applications to construct and operate digital television facilities,
construction permits and/or licenses for such digital facilities. All
LPTV and TV translator stations are secondary to full service stations
and are subject to displacement by such stations. Bidders should
investigate the impact such applications, permits and licenses may have
on their ability to operate facilities based on the construction
permits offered in this auction.
iv. Use of Integrated Spectrum Auction System
13. The Commission will make available a browser-based bidding
system to allow bidders to participate in Auction 85 over the Internet
using the Commission's Integrated Spectrum Auction System (ISAS or FCC
Auction System). The Commission makes no warranty whatsoever with
respect to the FCC Auction System. In no event shall the Commission, or
any of its officers, employees or agents, be liable for any damages
whatsoever (including, but not limited to, loss of business profits,
business interruption, loss of business information, or any other loss)
arising out of or relating to the existence, furnishing, functioning or
use of the FCC Auction System that is accessible to qualified bidders
in connection with this auction. Moreover, no obligation or liability
will arise out of the Commission's technical, programming or other
advice or service provided in connection with the FCC Auction System.
v. Environmental Review Requirements
14. Permittees or licensees must comply with the Commission's rules
regarding implementation of the National Environmental Policy Act and
other Federal environmental statutes.
C. Auction Specifics
i. Auction Date
15. Bidding in Auction 85 will begin on Wednesday, November 5,
2008.
16. The initial schedule for bidding will be announced by public
notice at least one week before the start of the auction. Unless
otherwise announced, bidding on construction permits will be conducted
on each business day until bidding has stopped on all construction
permits.
ii. Bidding Methodology
17. The bidding methodology for Auction 85 will be simultaneous
multiple round bidding. The Commission will conduct this auction over
the Internet using the FCC Auction
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System, and telephonic bidding will be available as well. All telephone
calls are recorded.
iii. Pre-Auction Dates and Deadlines
18. Dates and Deadlines
Auction Seminar....................... October 1, 2008.
Upfront Payments (via wire transfer).. October 10, 2008; 6 p.m. ET.
Mock Auction.......................... November 3, 2008.
Auction Begins........................ November 5, 2008.
iv. Requirements for Participation
19. Those wishing to participate in the auction must: (1) Be listed
on Attachment A; (2) submit a sufficient upfront payment and an FCC
Remittance Advice Form (FCC Form 159) before 6 p.m. ET, October 10,
2008, following the procedures and instructions set forth in Attachment
B to the Auction 85 Procedures Public Notice; and (3) comply with all
provisions outlined in the Public Notice and applicable Commission
rules.
II. Short-Form Application (FCC Form 175) Requirements
A. Minor Modifications to Short-Form Applications (FCC Forms 175)
20. Since the deadline for filing short-form applications (FCC
Forms 175) passed on June 30, 2006, Auction 85 applicants may now make
only minor changes to their applications.
B. Maintaining Current Information in Short-Form Applications (FCC Form
175)
21. 47 CFR 1.65 requires an applicant to maintain the accuracy and
completeness of information furnished in its pending application and to
notify the Commission within 30 days of any substantial change that may
be of decisional significance to that application.
III. Pre-Auction Procedures
A. Auction Seminar
22. On Wednesday, October 1, 2008, the FCC will sponsor a seminar
for Auction 85 at the FCC headquarters, located at 445 12th Street,
SW., Washington, DC. The seminar will provide attendees with
information about pre-auction procedures, auction rules and conduct,
and the FCC Auction System. The seminar will also provide an
opportunity for prospective bidders to ask questions of FCC staff
concerning the auction, auction procedures, and other matters related
to this auction.
B. Minor Corrections to Applications
23. The Commission will issue a future public notice identifying:
(1) Those applications which are complete; (2) those applications
rejected; and (3) those applications which have minor defects that may
be corrected, and the deadline for resubmitting corrected applications.
Mutually exclusive commercial applications will proceed to auction.
C. Upfront Payments--Due October 10, 2008
24. In order to be eligible to bid in the auction, applicants must
submit an upfront payment accompanied by an FCC Remittance Advice Form
(FCC Form 159). Applicants in Auction 85 have access to an electronic
version of the FCC Form 159 that can be printed and sent by facsimile
to U.S. Bank in St. Louis, Missouri. All upfront payments must be
received in the proper account at U.S. Bank before 6 p.m. ET on October
10, 2008.
i. Making Auction Payments by Wire Transfer
25. Wire transfer payments must be received before 6 p.m. ET on
October 10, 2008, consistent with instructions set forth in the Auction
85 Procedures Public Notice.
ii. FCC Form 159
26. A completed FCC Remittance Advice Form (FCC Form 159, Revised
07/05) must be sent by facsimile to U.S. Bank to accompany each upfront
payment. Proper completion of FCC Form 159 (Revised 2/03) is critical
to ensuring correct crediting of upfront payments. Detailed
instructions for completion of FCC Form 159 are included in Attachment
B of the Auction 85 Procedures Public Notice. The FCC Form 159 can be
completed electronically, but must be filed with U.S. Bank via
facsimile.
iii. Upfront Payments and Bidding Eligibility
27. The Commission has delegated to the Bureaus the authority and
discretion to determine appropriate upfront payment(s) for each
auction. Upfront payments help deter frivolous or insincere bidding,
and provide the Commission with a source of funds in the event that the
bidder incurs liability during the auction.
28. Applicants that are former defaulters must pay upfront payments
50 percent greater than non-former defaulters. For purposes of this
calculation, the applicant includes the applicant itself, its
affiliates, its controlling interests, and affiliates of its
controlling interests, as defined by 47 CFR 1.2110.
29. Applicants must make upfront payments sufficient to obtain
bidding eligibility on the construction permits on which they will bid.
The Bureaus proposed, in the Auction 85 Comment Public Notice, that the
amount of the upfront payment would determine a bidder's initial
bidding eligibility, the maximum number of bidding units on which a
bidder may place bids. Under the Bureaus' proposal, in order to bid on
a particular construction permit, a qualified bidder must have a
current eligibility level that meets or exceeds the number of bidding
units assigned to one or more of the construction permits listed in
Attachment A for which it has submitted an engineering proposal. At a
minimum, therefore, an applicant's total upfront payment must be enough
to establish eligibility to bid on at least one of the construction
permits designated for that applicant in Attachment A or else the
applicant will not be eligible to participate in the auction. An
applicant does not have to make an upfront payment to cover all
construction permits designated for the applicant in Attachment A, but
only enough to cover the maximum number of bidding units that are
associated with construction permits on which the bidder wishes to
place bids and hold provisionally winning bids at any given time.
30. In calculating its upfront payment amount, an applicant should
determine the maximum number of bidding units on which it may wish to
be active (bid on or hold provisionally winning bids on) in any single
round, and submit an upfront payment amount covering that number of
bidding units. In order to make this calculation, an applicant should
add together the upfront payments for all construction permits on which
it seeks to be active in any given round. Applicants should check their
calculations carefully, as there is no provision for increasing a
bidder's eligibility after the upfront payment deadline.
31. If an applicant is a former defaulter, it must calculate its
upfront payment for all construction permits by multiplying the number
of bidding units on which they wish to be active by 1.5. In order to
calculate the number of bidding units to assign to former defaulters,
the Commission will divide the upfront payment received by 1.5 and
round the result up to the nearest bidding unit. If a former defaulter
fails to submit a sufficient upfront payment to establish eligibility
to bid on at least one of the construction permits associated with that
applicant in Attachment A, the applicant will not be eligible to
participate in the auction.
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iv. Applicant's Wire Transfer Information for Purposes of Refunds of
Upfront Payments
32. To ensure that refunds of upfront payments are processed in an
expeditious manner, the Commission is requesting that such requests
include all pertinent information listed in the Auction 85 Procedures
Public Notice. Applicants can provide the information electronically
through the FCC Auction System.
D. Auction Registration
33. Approximately ten days before the auction, the Bureaus will
issue a public notice announcing all qualified bidders for the auction.
Qualified bidders are those applicants with timely-submitted short-form
applications that are deemed complete and timely upfront payments that
are sufficient to make them eligible to bid.
E. Remote Electronic Bidding
34. The Commission will conduct this auction over the Internet, and
telephonic bidding will be available as well. Only qualified bidders
are permitted to bid. Each applicant should indicate its bidding
preference--electronic or telephonic--on its short-form application. In
either case, each authorized bidder must have its own SecurID[supreg]
token, which the Commission will provide at no charge.
F. Mock Auction--November 3, 2008
35. All qualified bidders will be eligible to participate in a mock
auction on Monday, November 3, 2008. The mock auction will enable
bidders to become familiar with the FCC Auction System prior to the
auction. Participation by all bidders is strongly recommended. Details
will be announced by public notice.
IV. Auction Event
36. The first round of bidding for Auction 85 will begin on
Wednesday, November 5, 2008. The initial bidding schedule will be
announced in a public notice listing the qualified bidders, which is to
be released approximately 10 days before the start of the auction.
A. Auction Structure
i. Simultaneous Multiple Round Auction
37. In the Auction 85 Comment Public Notice, the Bureaus proposed
to auction all construction permits in Auction 85 in a single auction
using the Commission's standard simultaneous multiple-round (SMR)
auction format. 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.
The Bureaus received no comment on this issue.
ii. Eligibility and Activity Rules
38. The Bureaus will use upfront payments to determine the initial
(maximum) eligibility (as measured in bidding units) for Auction 85.
The amount of the upfront payment submitted by a bidder determines
initial bidding eligibility, the maximum number of bidding units on
which a bidder may be active. As noted earlier, each construction
permit is assigned a specific number of bidding units listed in
Attachment A. 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 of the construction permits designated for that
applicant as long as the total number of bidding units associated with
those construction permits does not exceed its current eligibility.
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. At a minimum, an applicant's upfront payment must
cover the bidding units for at least one of the licenses it selected on
its short-form application. The total upfront payment does not affect
the total dollar amount a bidder may bid on any given construction
permit.
39. 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. Bidders are required to be active on a specific
percentage of their current bidding eligibility during each round of
the auction.
40. A bidder's activity level in a round is the sum of the bidding
units associated with any construction permits covered by that bidder's
new and provisionally winning bids. A bidder is considered active on a
construction permit in the current round if it is either the
provisionally winning bidder at the end of the previous bidding round
or if it submits a bid in the current round.
41. A bidder is required to be active on 100 percent of its current
eligibility during each round of the auction. That is, a bidder must
either place a bid and/or be the provisionally winning bidder 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.
iii. Activity Rule Waivers
42. Each bidder in the auction will be provided with three activity
rule waivers. The Bureaus received no comments on this issue.
iv. Auction Stopping Rules
43. For Auction 85, the Bureaus will 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.
44. Auction 85 will begin under the simultaneous stopping rule
approach, and the Bureaus will retain the discretion to employ the
other proposed versions of the stopping rule. Moreover, the Bureaus
will retain the discretion to use the modified stopping rule with or
without prior announcement during the auction.
v. Auction Delay, Suspension, or Cancellation
45. The Bureaus may delay, suspend, or cancel the auction in the
event of natural disaster, technical obstacle, administrative or
weather necessity, evidence of an auction security breach or unlawful
bidding activity, 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.
[[Page 53024]]
B. Bidding Procedures
i. Round Structure
46. The initial schedule of bidding rounds will be announced in the
public notice listing the qualified bidders, which is released
approximately 10 days before the start of the auction. Each bidding
round is followed by the release of round results. Multiple bidding
rounds may be conducted in a given day. Details regarding round results
formats and locations will also be included in the qualified bidders
public notice.
47. 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, the amount of time between rounds, or the number of
rounds per day, depending upon the bidding activity level and other
factors.
ii. Reserve Price and Minimum Opening Bids
48. The specific minimum opening bid amounts for each construction
permit available in Auction 85 are set forth in Attachment A.
iii. Bid Amounts
49. The Bureaus proposed that in each round, eligible bidders will
be able to place a bid on a given construction permit in any of up to
nine different amounts. The FCC Auction System interface will list the
nine acceptable bid amounts for each construction permit.
iv. Provisionally Winning Bids
50. At the end of each bidding round, a provisionally winning bid
will be determined based on the highest bid amount received for each
construction permit. 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. Provisionally
winning bids at the end of the auction become the winning bids. Bidders
are reminded that provisionally winning bids count toward activity for
purposes of the activity rule.
51. The Bureaus will use a random number generator to select a
single provisionally winning bid in the event of identical high bid
amounts being submitted on a construction permit in a given round
(i.e., tied bids).
52. The tied bid with the highest random number wins the
tiebreaker, and becomes the provisionally winning bid. Bidders
regardless of whether they hold a provisionally winning bid, can submit
higher bides 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 provisionally winning bid.
53. All bidding will take place remotely either through the FCC
Auction System or by telephonic bidding. There will be no on-site
bidding during Auction 85. Please note that telephonic bid assistants
are required to use a script when entering bids placed by telephone.
Telephonic bidders are therefore reminded to allow sufficient time to
bid by placing their calls well in advance of the close of a round. The
length of a call to place a telephonic bid may vary; please allow a
minimum of ten minutes.
54. A bidder's ability to bid on specific construction permits is
determined by two factors: (1) The construction permits designated for
that applicant; and (2) the bidder's eligibility. The bid submission
screens will allow bidders to submit bids on only those construction
permits designated for that bidder on Attachment A.
55. In each round, eligible bidders will be able to place bids on a
given construction permit in any of nine different bid amounts. For
each construction permit, the FCC Auction System will list the nine
acceptable bid amounts in a drop-down box. Bidders use the drop-down
box to select from among the acceptable bid amounts. The FCC Auction
System also includes an upload function that allows bidders to upload
text files containing bid information.
56. Until a bid has been placed on a construction permit, the
minimum acceptable bid amount for that construction permit will be
equal to its minimum opening bid amount. Once there are bids on a
construction permit, minimum acceptable bids for a construction permit
for the following round will be determined.
57. During a round, an eligible bidder may submit bids for as many
construction permits as it wishes (providing that it is eligible to
bid), remove bids placed in the current bidding round, or permanently
reduce eligibility. If a bidder submits multiple bids for the same
construction permit in the same round--multiple bids on the exact same
construction permit--the system takes the last bid entered as that
bidder's bid for the round. Bidders should note that the bidding units
associated with construction permits for which the bidder has removed
bids do not count towards the bidder's current activity.
v. Bid Removal and Bid Withdrawal
58. Before the close of a bidding round, a bidder has the option of
removing any bids 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 withdrawal payments. Removing a bid will affect
a bidder's activity for the round in which it is removed, i.e., a bid
that is removed does not count toward bidding activity. Once a round
closes, a bidder may no longer remove a bid.
vi. Round Results
59. Reports reflecting bidders' identities for Auction 85 will be
available before and during the auction. Thus, bidders will know in
advance of this auction the identities of the bidders against which
they are bidding.
60. Bids placed during a round will not be made public until the
conclusion of that round. After a round closes, the Bureaus will
compile reports of all bids placed, current provisionally winning bids,
new minimum acceptable bid amounts for the following round, whether the
construction permit is FCC held, and bidder eligibility status (bidding
eligibility and activity rule waivers), and post the reports for public
access.
vii. Auction Announcements
61. The Commission will use auction announcements to announce items
such as schedule changes. All auction announcements will be available
by clicking a link in the FCC Auction System.
V. Post-Auction Procedures
62. Shortly after bidding has ended, the Commission will issue a
public notice declaring the auction closed, identifying the winning
bidders, and establishing the deadlines for submitting down payments,
long-form applications, and final payments, the long-form application
(FCC Forms 301-CA or 346).
A. Down Payments
63. Within ten business days after release of the auction closing
notice, each winning bidder must submit sufficient funds (in addition
to its upfront payment) to bring its total amount of money on deposit
with the Commission for Auction 85 to 20 percent of the net amount of
its winning bids (gross bids less any applicable new entrant bidding
credits).
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B. Final Payments
64. Each winning bidder will be required to submit the balance of
the net amount of its winning bids within 10 business days after the
applicable deadline for submitting down payments.
C. Long-Form Application
65. Within thirty days after the release of the auction closing
notice, winning bidders must submit electronically a properly completed
long-form application (FCC Forms 301-CA or 346), and required exhibits
for each construction permit won through Auction 85. A winning bidder
claiming new entrant status must include an exhibit demonstrating its
eligibility for the bidding credit. Further filing instructions will be
provided to auction winners at the close of the auction.
D. Default and Disqualification
66. Any winning bidder that defaults or is disqualified after the
close of the 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 final payment within the
prescribed period of time, or is otherwise disqualified) will be
subject to the payments described in 47 CFR 1.2104(g)(2). The payments
include both 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.
67. The percentage of the applicable bid to be assessed as an
additional payment for defaults in a particular auction is established
in advance of the auction. The Bureaus have set the additional default
payment for this auction at twenty percent (20%) of the applicable bid.
68. Finally, in the event of a default, the Commission may re-
auction the construction permit or offer it to the next highest bidder
(in descending order) at its final bid amount. In addition, if a
default or disqualification involves gross misconduct,
misrepresentation, or bad faith by an applicant, the Commission may
declare the applicant and its principals ineligible to bid in future
auctions, and may take any other action that it deems necessary,
including institution of proceedings to revoke any existing
authorizations held by the applicant.
E. Refund of Remaining Upfront Payment Balance
69. All applicants that submit upfront payments but after the close
of the auction are not winning bidders for a construction permit in
Auction 85 may be entitled to a refund of their remaining upfront
payment balance after the conclusion of the auction. All refunds will
be returned to the payor of record, as identified on the FCC Form 159,
unless the payor submits written authorization instructing otherwise.
70. Bidders that drop out of the auction completely may be eligible
for a refund of their upfront payments before the close of the auction.
Qualified bidders that have exhausted all of their activity rule
waivers and have no remaining bidding eligibility may also be eligible
for a refund of their upfront payment before the close of the auction.
Federal Communications Commission.
Gary D. Michaels,
Deputy Chief, Auctions and Spectrum Access Division, WTB.
[FR Doc. E8-21350 Filed 9-11-08; 8:45 am]
BILLING CODE 6712-01-P