[Federal Register Volume 62, Number 207 (Monday, October 27, 1997)]
[Notices]
[Pages 55642-55643]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-28361]
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FEDERAL COMMUNICATIONS COMMISSION
[CC Docket No. 92-297; DA 97-2224]
Comment Sought on Reserve Prices or Minimum Opening Bids for LMDS
Auction: LMDS Auction Formula Proposed [Report No. AUC-17-B (Auction
No. 17)]
AGENCY: Federal Communications Commission.
ACTION: Public notice seeking comment.
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SUMMARY: The Commission is proposing a formula for calculating minimum
opening bids in the auction of licenses for the Local Multipoint
Distribution Service, Auction No. 17, and invites public comment on its
proposal.
DATES: Comments are due November 5, 1997. Reply comments are due
November 10, 1997.
FOR FURTHER INFORMATION CONTACT: Brett Tarnutzer, Auctions and Industry
Analysis Division, Wireless Telecommunications Bureau, at (202) 418-
0660.
SUPPLEMENTARY INFORMATION: This public notice was released on October
17, 1997, and is available for inspection and copying during normal
business hours in the FCC Reference Center (Room 239), 1919 M Street,
N.W., Washington, D.C., and also may be purchased from the Commission's
copy contractor, International Transcription Services, (202) 857-3800,
Fax (202) 857-3805, 1231 20th Street, N.W., Washington, D.C. 20036.
Synopsis of the Public Notice
Background
1. When FCC licenses are subject to auction (i.e., because they are
mutually exclusive) the recently enacted Balanced Budget Act of 1997
calls upon the Commission to prescribe methods by which a reasonable
reserve price will be required or a minimum opening bid established,
unless the Commission determines that a reserve price or minimum bid is
not in the public interest. Section 3002(a), Balanced Budget Act of
1997, Public Law 105-33, 111 Stat. 251 (1997); 47 U.S.C. 309(j)(4)(F).
The Commission's authority to establish a reserve price or minimum
opening bid is set forth in 47 CFR 1.2104(c) and (d). 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unpublished.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. In a minimum opening bid scenario, the auctioneer generally
has the discretion to lower it later in the auction.
2. The Wireless Telecommunications Bureau recently announced the
auction of 986 licenses for the Local Multipoint Distribution Service
(``LMDS''), which is to begin December 10, 1997. See Public Notice,
``Auction of Local Multipoint Distribution Service: Auction Notice and
Filing Requirements for 986 Basic Trading Area (``BTA'') Licenses in
the 28 GHz and 31 GHz Bands, Scheduled for December 10, 1997,'' DA 97-
2081 (62 FR 53629, October 15, 1997).
Discussion
3. The Commission believes a minimum opening bid is more
appropriate for the LMDS auction than a reserve price because firm
reserve prices would not give the Commission flexibility to adjust to
information learned during the auction and react to changing market
conditions. Minimum bids, on the other hand, can serve the same revenue
raising objective that reserve prices would serve, and in addition
preserve for the Commission freedom to reduce the selected levels as
the bidding unfolds. Further, a minimum opening bid will help to
regulate the pace of the auction.
4. Specifically, the Commission proposes the following formula for
calculating minimum opening bids in Auction No. 17:
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A block min.
Population of license area opening bid (in B block min. opening
dollars) bid
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Less than 100,000............. 0.75 x 10% of A Block.
population.
100,000-1,000,000............. 1.50 x 10% of A Block.
population.
More than 1,000,000........... 2.25 x 10% of A Block.
population.
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[[Page 55643]]
5. If, however, commenters believe that the formula proposed above
for minimum opening bids will result in substantial numbers of unsold
licenses, or is not a reasonable amount, or should instead operate as a
reserve price, 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. Alternatively,
comment is sought on whether, consistent with the Balanced Budget Act,
the public interest dictates having no minimum opening bid or reserve
price.
6. Comments are due on or before November 5, 1997, and reply
comments are due on or before November 10, 1997. To file formally,
parties must submit an original and four copies to the Chief, Auctions
and Industry Analysis Division, Wireless Telecommunications Bureau,
Federal Communications Commission, Room 5202, 2025 M Street, N.W.,
Washington, D.C. 20554. Comments and reply comments will be available
for public inspection during regular business hours in the FCC Public
Reference Room, Room 239, 1919 M Street, N.W., Washington, D.C. 20554.
Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 97-28361 Filed 10-24-97; 8:45 am]
BILLING CODE 6712-01-P
