[Federal Register Volume 62, Number 50 (Friday, March 14, 1997)]
[Notices]
[Pages 12186-12198]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-6418]
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FEDERAL COMMUNICATIONS COMMISSION
[DA 97-386]
Auction of Wireless Communications Service (Auction No. 14)
AGENCY: Federal Communications Commission.
ACTION: Notice.
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SUMMARY: The Wireless Telecommunications Bureau announced the
application procedures for the upcoming WCS auction (Auction #14) in a
Public Notice dated February 20, 1997. The auction is scheduled to
begin April 15, 1997 and will consist of 128 licenses: two licenses in
52 Major Economic Areas in the United States and two licenses in 12
Regional Economic Area Groupings. The purpose of the public notice is
to inform interested parties of the auction procedures the Commission
will use in Auction #14 and the filing requirements to become an
eligible bidder.
FOR FURTHER INFORMATION CONTACT: Louis Sigalos or Josh Roland, Wireless
Telecommunications Bureau, at (202) 418-0660.
SUPPLEMENTARY INFORMATION: This is a summary of Public Notice DA 97-
386, ``Auction of Wireless Communications Service--Auction Notice and
Filing Requirements for 128 WCS Licenses Scheduled for April 15,
1997,'' released February 21, 1997. The complete text of the Public
Notice 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 Service, (202) 857-3800, 2100 M
Street, N.W., Suite 140, Washington, D.C. 20037.
Synopsis of the Public Notice
I. Introduction
1. Licenses To Be Auctioned: 128 licenses. Wireless Communications
Service (``WCS'') licensees are permitted, within their assigned
spectrum and geographic areas, to provide any fixed, mobile,
radiolocation or broadcast-satellite use consistent with the allocation
table and associated international agreements concerning spectrum
allocations. The auction will consist of 2 licenses (Frequency Blocks
``A'' and ``B'') in 52 Major Economic Areas (MEAs), authorizing service
on 10 MHz of spectrum, and 2 licenses (Frequency Blocks ``C'' and
``D'') in each of 12 Regional Economic Area Groupings (REAGs),
authorizing service on 5 MHz of spectrum. Each frequency block
encompasses the following spectrum:
Frequency Block A: 2305-2310 MHz paired with 2350-2355 MHz
Frequency Block B: 2310-2315 MHz paired with 2355-2360 MHz
Frequency Block C: 2315-2320 MHz
Frequency Block D: 2345-2350 MHz
A detailed listing of MEAs and REAGs, with their FCC market number,
market description, license number, population, and upfront payment are
provided in Attachment A.
2. Auction Date: The auction will begin on April 15, 1997. The
precise schedule for bidding will be announced by public notice at
least one week before the start of the auction. Unless otherwise
announced, bidding will be conducted on each business day until bidding
has stopped on all licenses.
3. Auction Title: This is the fourteenth spectrum auction the
Commission has scheduled, and will be referred to as ``Auction No. 14,
Wireless Communications Service.''
4. Bidding Methodology: Simultaneous multiple round bidding.
Bidding will be by electronic means from remote locations only.
Participants should note that this auction will use a round structure
that is different from the procedures used in previous Commission
auctions.
5. Pre-Auction Dates:
* Short-Form Application (FCC Form 175): March 25, 1997, 5:30 p.m.
ET.
* Upfront Payments (Only Wire Transfer Accepted): April 4, 1997,
6:00 p.m. ET.
* Orders for Remote Bidding Software: April 4, 1997, 5:30 p.m. ET.
* Mock Auction: April 10, 1997.
6. Telephone Contacts:
* FCC National Call Center: 888-CALL-FCC (888-225-5322) (Bidder
Information Packages/General Auction Information).
* FCC Technical Support Hotline: 202-414-1250.
7. List of Attachments:
* Attachment A: List of Licenses Offered.
* Attachment B: Electronic Filing of FCC Form 175.
* Attachment C: Guidelines for Completing FCC Form 175 and
Exhibits.
* Attachment D: Summary Listing of Documents from the Commission
and the Wireless Telecommunications Bureau Addressing Application of
the Anti-Collusion Rules.
8. Bidder Information Package: More complete details about this
auction will be contained in a Bidder Information Package. The
Commission will provide one copy free of charge. Additional copies may
be ordered at a cost of $16.00 each, including postage, payable by Visa
or Master Card, or by check payable to ``Federal Communications
Commission'' or ``FCC''. To place an order, please contact the FCC
National Call Center at 888-CALL-FCC (888-225-5322). Bidders who do not
receive their Packages within two weeks of ordering should contact the
Call Center.
9. Participation: Those wishing to participate in the auction must
submit
[[Page 12187]]
an FCC Form 175 short-form application. The FCC Form 175 must be
completed and filed in accordance with the Commission's rules and the
instructions provided in the Bidder Information Package, and must be
submitted electronically no later than 5:30 p.m. ET on March 25, 1997.
10. Applicants will be required to submit an upfront payment and an
FCC Remittance Advice (FCC Form 159). The upfront payment must be made
in U.S. dollars by wire transfer. Payments must be received at Mellon
Bank in Pittsburgh, Pennsylvania, no later than April 4, 1997 at 6:00
p.m. ET. No other form of payment will be accepted.
11. Prohibition of Collusion: To ensure the competitiveness of the
auction process, the Commission's rules prohibit applicants for the
same geographic areas from communicating with each other during the
auction about bids, bidding strategies or settlements. This prohibition
begins with the filing of short-form applications, and ends when
winning bidders submit down payments. The prohibition does not apply
where applicants enter into a bidding agreement before filing their
short-form applications, and disclose the existence of the agreement in
the short-form application. See 47 CFR Section 1.2105(c).
12. Relevant Authority: Prospective bidders should familiarize
themselves thoroughly with the FCC's rules relating to the Wireless
Communications Service contained in Part 27 of this Chapter, and rules
relating to application and auction procedures, contained in Part 1,
Subpart Q.
13. The specific rules applicable to WCS are contained in the
Commission's Report and Order in Amendment of the Commission's Rules to
Establish Part 27, the Wireless Communications Service (``WCS''), GN
Docket No. 96-228, FCC 97-50 (released February 19, 1997), 62 FR 9635
(March 3, 1997). This Report and Order is posted on the Commission's
world wide web site at http://www.fcc.gov.
14. The Terms contained in the FCC's rules, the Report and Order,
this Public Notice, and in the Bidder Information Package are not
negotiable. Prospective bidders should review these auction documents
thoroughly prior to the auction to make certain that they understand
all of the provisions and are willing to be bound by all of the Terms
before participating in the auction.
15. The Commission may amend or supplement the information
contained in this Public Notice and in the Bidder Information Package
at any time. The Commission will issue public notices to convey new or
supplemental information to bidders. It is the responsibility of all
prospective bidders to remain current with all FCC rules and with all
public notices pertaining to this auction. Copies of FCC documents,
including public notices, may be obtained for a fee by calling the
Commission's copy contractor, International Transcription Service,
Inc., at 202-857-3800. Additionally, many documents can be retrieved
from the FCC Internet node via anonymous ftp@ftp.fcc.gov or the FCC
world wide web site at http://www.fcc.gov. Bidders should also note
that a separate Auction's web page is available on the Commission's web
site at http://www.fcc.gov/auctions.html.
16. Bidder Alerts: All applicants must certify under penalty of
perjury on their FCC Form 175 applications that they are legally,
technically, financially and otherwise qualified to hold a license, and
not in default on any Commission licenses. Prospective bidders are
reminded that submission of a false certification to the Commission is
a serious matter that may result in severe penalties, including
monetary forfeitures, license revocations, exclusion from participation
in future auctions, and/or criminal prosecution.
17. The Commission 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
licensee in this service, subject to certain conditions and
regulations. An FCC auction does not constitute an endorsement by the
FCC of any particular services, technologies or products, nor does an
FCC license constitute a guarantee of business success. Applicants
should perform their individual due diligence before proceeding as they
would with any new business venture.
18. As is the case with many business investment opportunities,
some unscrupulous entrepreneurs may attempt to use the WCS auction to
deceive and defraud unsuspecting investors. Common warning signals of
fraud include the following:
* The first contact is a ``cold call'' from a telemarketer, or is
made in response to an inquiry prompted by a radio or television
infomercial.
* The offering materials used to invest in the venture appear to be
targeted at IRA funds, for example by including all documents and
papers needed for the transfer of funds maintained in IRA accounts.
* The amount of the minimum investment is less than $25,000.
* The sales representative makes verbal representations that: (a)
The IRS, FTC, SEC, FCC, or other government agency has approved the
investment; (b) the investment is not subject to state or federal
securities laws; or (c) the investment will yield unrealistically high
short-term profits. In addition, the offering materials often include
copies of actual FCC releases, or quotes from FCC personnel, giving the
appearance of FCC knowledge or approval of the solicitation.
19. Information about deceptive telemarketing investment schemes is
available from the Federal Trade Commission (FTC) at 202-326-2222 and
from the Securities and Exchange Commission (SEC) at 202-942-7040.
Complaints about specific deceptive telemarketing investment schemes
should be directed to the FTC, the SEC, or the National Fraud
Information Center at 800-876-7060. Consumers who have concerns about
specific WCS investment proposals may also call the FCC National Call
Center at 888-CALL-FCC (888-225-5322).
II. Bidder Eligibility and Small Business Provisions
A. General Eligibility Criteria
20. This auction offers a total of 128 WCS licenses, with two
licenses available in each of the 52 MEAs (Frequency Blocks ``A'' and
``B'') and two licenses available in each of the 12 REAGs (Frequency
Blocks ``C'' and ``D''). WCS licensees will be permitted to partition
their service areas into smaller geographic service areas and to
disaggregate their spectrum into smaller blocks. See 47 CFR Section
27.15.
21. Section 27.12 of the Commission's rules sets out eligibility
requirements for WCS licensees. Under Section 27.12, any entity, other
than those precluded by foreign ownership restrictions set forth in
Section 310 of the Communications Act of 1934, as amended, 47 U.S.C.
Section 310, is eligible to hold a WCS license.
22. Prospective bidders should note that the Commission is hosting
an industry forum on the WCS on February 28, 1997, at the agency's
auction site located at 2 Massachusetts Avenue, N.E., Washington, D.C.
Additional information regarding the forum is available on the
Auction's web page of the Commission's web site, or by calling Louis
Sigalos or Josh Roland of the Auctions Division of the Wireless
Telecommunications Bureau at 202-418-0660.
[[Page 12188]]
B. Special Financial Provisions for Qualifying Small Businesses
23. Qualifying small business applicants are eligible for the
special financial provision of bidding credits. See 47 CFR Section
27.209.
(1) Definitions of Small Businesses
24. The Commission defined the small business definitions for the
WCS as:
* A ``small business'' is defined as an entity with average gross
revenues not exceeding $40 million for the preceding three years.
* A ``very small business'' is defined as an entity with average
gross revenues not exceeding $15 million for the preceding three years.
25. Gross revenues include all income received by an entity,
whether earned or passive, before any deductions are made for costs of
doing business (e.g., cost of goods sold), as evidenced by audited
financial statements for the relevant number of most recently completed
calendar years, or, if audited financial statements were not prepared
on a calendar-year basis, for the most recently completed fiscal years
preceding the filing of the applicant's short-form application (FCC
Form 175). If an entity was not in existence for all or part of the
relevant period, gross revenues shall be evidenced by the audited
financial statements of the entity's predecessor-in-interest or, if
there is no identifiable predecessor-in-interest, unaudited financial
statements certified by the applicant as accurate. When an applicant
does not otherwise use audited financial statements, its gross revenues
may be certified by its chief financial officer or its equivalent. See
47 CFR Section 27.210.
26. In determining whether an entity qualifies as a small business
at either threshold, gross revenues of all ``controlling'' principals
will be attributed to the prospective small business applicant, as well
as the gross revenues of affiliates of the applicant. However, personal
net worth is not included in the determination of eligibility for
bidding as a small business. The term ``control'' includes both de jure
and de facto control of the applicant. Typically, de jure control is
evidenced by ownership of 50.1 percent of an entity's voting stock. De
facto control is determined on a case-by-case basis. An entity must
demonstrate at least the following indicia of control to establish that
it retains de facto control of the applicant: (1) the entity
constitutes or appoints more than 50 percent of the board of directors
or partnership management committee; (2) the entity has authority to
appoint, promote, demote and fire senior executives that control the
day-to-day activities of the licensees; and (3) the entity plays an
integral role in all major management decisions. The definition of
``affiliate'' is set forth at Section 27.210(d) of the Commission's
Rules.
(2) Bidding Credits
27. The size of a WCS bidding credit depends on the annual gross
revenues of the bidder and its affiliates, as averaged over the
preceding three years:
* A bidder with average gross annual revenues not exceeding $40
million (a ``small business'') receives a 25-percent discount on its
winning bids for WCS licenses.
* A bidder with average gross annual revenues not exceeding $15
million (a ``very small business'') receives a 35-percent discount on
its winning bids for WCS licenses.
These bidding credits are not cumulative.
(3) Application Showing
28. Applicants should note that as part of their FCC Form 175
filing they will be required to file supporting documentation to
establish that they satisfy the eligibility requirements to bid as a
small business or very small business in this auction, and that they
are subject to audits to confirm their eligibility.
(4) Unjust Enrichment
29. WCS winning bidders should note that unjust enrichment
provisions apply to winning bidders who use bidding credits and
subsequently assign or transfer control of their WCS licenses to an
entity that does not qualify for the special financial provisions. See
47 CFR Section 27.209. Likewise, unjust enrichment provisions apply to
any WCS licensee that received a bidding credit and subsequently
partitions a portion of its license or disaggregates a portion of its
spectrum to an entity that would not have qualified for such a bidding
credit.
III. Pre-Auction Procedures
A. Short-Form Application (FCC Form 175)--Due March 25, 1997
30. In order to be eligible to bid in this auction, applicants must
first submit an FCC Form 175 application to the Commission. This
application must be submitted electronically by 5:30 p.m. ET on March
25, 1997. Late applications will not be accepted.
31. There is no application fee required when filing a FCC Form
175. However, to be eligible to bid, an applicant will have to submit
an upfront payment.
(1) Electronic Filing Only
32. Applicants must file their applications electronically. Manual
filing is not permitted for this auction. Generally, applicants may
begin to file electronically on a 24-hour basis beginning at about the
same time as release of the Bidder Information Package. All the
information required to file the FCC Form 175 electronically (i.e.,
software, help files and configuration samples) will be available over
both the Internet and the FCC's Bulletin Board System (``BBS').
(2) Completion of the FCC Form 175
33. Applicants should carefully review 47 CFR Sections 1.2105 and
27.204, and must complete all items on the FCC Form 175. Instructions
for completing the FCC Form 175 will be contained in the Bidder
Information Package.
34. Failure to submit the required ownership information will
result in dismissal of the application and loss of the ability to
participate in the auction.
(3) Electronic Review of FCC Form 175
35. The FCC Form 175 review software may be used to review and
print applicants' FCC Form 175 applications. In other words, applicants
who file electronically may review their own completed FCC Form 175s.
Applicants also have access to view other applicants' completed FCC
Form 175s after the deadline for filing FCC Form 175s has passed and
the Commission has issued a public notice identifying the filing status
of the applicants.
B. Application Processing and Minor Corrections
36. After the deadline for filing the FCC Form 175 applications has
passed, the Commission will process all timely applications to
determine which are acceptable for filing, and subsequently will issue
a public notice identifying: (1) Those applications accepted for filing
(including FCC account numbers and the licenses for which they
applied); (2) those applications rejected; and (3) those applications
which have minor defects that may be corrected, and the deadline for
filing such corrected applications.
37. As described more fully in our rules, after the March 25, 1997
short-form filing deadline, applicants may make only minor corrections
to their FCC Form 175 applications. Applicants will not be permitted to
make major modifications to their applications (e.g.,
[[Page 12189]]
change their license selections, change the certifying official or
change control of the applicant). See 47 CFR Section 27.204(b).
C. Upfront Payments--Due April 4, 1997
38. In order to be eligible to bid in the auction, applicants must
submit an upfront payment accompanied by an FCC Remittance Advice (FCC
Form 159). All upfront payments must be received by wire transfer at
Mellon Bank in Pittsburgh, Pennsylvania, by 6:00 p.m. E.T. on April 4,
1997.
39. Please note that:
*All payments must be made in U.S. dollars.
*All payments must be made by wire transfer. No other form of
payment will be accepted.
*Upfront payments for Auction 14 go to a different lockbox number
from the one used in previous FCC auctions, and different from the
lockbox number to be used for post-auction payments.
*Failure to deliver the upfront payment by the April 4, 1997
deadline will result in dismissal of the application and
disqualification from participation in the auction.
(1) Wire Transfers
40. For this auction, the Commission requires applicants to make
their upfront payments by wire transfer, which experience has shown
provides the greatest reliability and efficiency. Wire transfer
payments must be received by 6:00 p.m. ET on April 4, 1997. To avoid
untimely payments, applicants should discuss arrangements (including
bank closing schedules) with their banker several days before they plan
to make the wire transfer, and allow sufficient time for the transfer
to be initiated and completed before the deadline. Applicants will need
the following information:
ABA Routing Number: 043000261
Receiving Bank: Mellon Pittsburgh
BNF: FCC/AC--9116106
OBI Field: (Skip one space between each information item)
``AUCTIONPAY''
FCC ACCOUNT NO. (same as FCC Form 159, Block 1)
PAYMENT TYPE CODE (enter ``A30U'')
FCC CODE (same as FCC Form 159, Block 17A: ``14'')
PAYOR NAME (same as FCC Form 159, Block 3)
LOCKBOX NO. 358400
Note: The BNF and Lockbox No. are specific to the upfront
payments for WCS; do not use BNF or Lockbox numbers from previous
auctions.
41. Applicants must fax a completed FCC Form 159 to Mellon Bank at
412-236-5702 at least one hour before placing the order for the wire
transfer (but on the same business day). On the cover sheet of the fax,
write ``Wire Transfer--Auction Payment for Auction Event #14''.
(2) FCC Form 159
42. Each upfront payment must be accompanied by a completed FCC
Remittance Advice (FCC Form 159). Proper completion of FCC Form 159 is
critical to ensuring correct credit of upfront payments. Instructions
for completing FCC Form 159 will be contained in the Bidder Information
Package.
(3) Amount of Upfront Payment
43. The amount of the upfront payment required to bid on a
particular license in Auction No. 14 is $0.02 per megahertz per
population (MHz-pop). As noted below, a different determination is used
for the Gulf of Mexico service area. The upfront payment associated
with each license offered is listed in Attachment A to this Public
Notice. Upfront payments, however, are not attributed to specific
licenses, but instead will be translated to bidding units to define the
bidder's maximum bidding eligibility.
44. Thus, an applicant does not have to make an upfront payment to
cover all licenses for which it has applied. Rather, the total upfront
payment defines the maximum amount of bidding units the applicant will
be permitted to bid on (including standing high bids) in any single
round of bidding. At a minimum, an applicant's total upfront payment
must be enough to establish eligibility to bid on at least one of the
licenses applied for on its FCC Form 175, or else the applicant will
not be eligible to participate in the auction.
45. In calculating the upfront payment amount, an applicant should
determine the maximum number of bidding units in terms of MHz-pops it
may wish to bid on in any single round, and submit an upfront payment
covering that number of bidding units. In this auction, the licenses
authorize service over 10 MHz of spectrum for MEAs and 5 MHz of
spectrum for REAGs. Thus, if an applicant wants to be eligible to bid
in any single bidding round on licenses in MEAs with a maximum total
population of 750,000 persons, the applicant must submit an upfront
payment of $150,000 (750,000 x 10 MHz x $0.02 = $150,000). Due to the
unique circumstances of the Gulf of Mexico service area (no population
figure), the Commission will establish an upfront payment of $5,000 and
250,000 bidding units for each MEA license and an upfront payment of
$2,500 and 125,000 bidding units for each REAG license in this area.
Note: An applicant may, on its FCC Form 175, apply for every
license being offered, but its actual bidding in any round will be
limited by the bidding units reflected in its upfront payment.
Bidders will be required to remain active in each round of the
auction on a specified percentage of bidding units reflected in
their upfront payments in order to retain their current eligibility.
(4) Refunds
46. The Commission currently intends to use wire transfers for all
Auction 14 refunds. To avoid delays in processing refunds, applicants
should include wire transfer instructions with any refund request they
file; they may also provide this information in advance by faxing it to
the FCC Billings and Collections Branch, ATTN: Regina Dorsey or Linwood
Jenkins, at 202-418-2843. Applicants should also note that
implementation of the Debt Collection Improvement Act of 1996 requires
the Commission to obtain a Taxpayer Identification Number before it can
disburse refunds.
D. Auction Registration
47. No later than five business days before the auction, the
Commission will issue a public notice announcing all qualified bidders
for the auction. Qualified bidders are those applicants whose FCC Form
175 applications have been accepted for filing and who have timely
submitted upfront payments sufficient to make them eligible to bid on
at least one of the licenses for which they applied.
48. All qualified bidders are automatically registered for the
auction. Registration materials will be distributed prior to the
auction by two separate overnight mailings, each containing part of the
confidential identification codes required to place bids. These
mailings only will be sent to the contact person at the applicant
address listed in the FCC Form 175.
49. Applicants who do not receive both registration mailings will
not be able to submit bids. Therefore, any qualified applicant who has
not received both mailings within three business days after the release
of the qualified bidders public notice should contact the FCC National
Call Center at 888-CALL-FCC (888-225-5322). Receipt of both
registration mailings is critical to participating in the auction and
each applicant is responsible for ensuring it has received all of the
registration material.
Note: Qualified bidders should note that lost login codes,
passwords or bidder
[[Page 12190]]
identification numbers can only be replaced by appearing in person
at the FCC Auction Headquarters located at 2 Massachusetts Avenue,
N.E., Washington, D.C. 20002. Only an authorized representative or
certifying official, as designated on an applicant's FCC Form 175,
may appear in person with two forms of identification (one of which
must be a photo identification) in order to receive replacement
codes.
E. Remote Electronic Bidding Software
50. Bidding for WCS licenses is by electronic means only. Bidders
must purchase remote electronic bidding software for $175.00, including
shipping and handling, by April 4, 1997. (Auction software is tailored
to a specific auction, so software from prior auctions will not work
for Auction 14.) Information about this software and an order form will
be included in the Bidder Information Package. Bidders who order remote
bidding software by the ordering deadline will receive it with the
registration mailings.
F. Mock Auction
51. All applicants whose FCC Form 175s have been accepted for
filing will be eligible to participate in a mock auction beginning
April 10, 1997. The mock auction will enable applicants to become
familiar with the electronic software prior to the auction. Free
demonstration software will be available for use in the mock auction.
Due to different bidding procedures in the WCS auction from previous
Commission auctions, participation by all bidders is strongly
recommended. Details will be announced by public notice.
IV. Auction Event
52. The Commission will begin the auction on Tuesday, April 15,
1997.
A. Auction Structure
(1) Simultaneous Multiple Round Auction
53. The 128 WCS licenses will be awarded through a single,
simultaneous multiple round auction. Unless otherwise announced, bids
will be accepted on all licenses in each round of the auction.
(2) Activity Rule
54. In order to ensure that the auction closes within a reasonable
period of time, an activity rule requires bidders to bid actively
throughout the auction, rather than waiting until the end before
participating. A bidder that does not satisfy the activity rule either
loses bidding eligibility or uses an activity rule waiver.
55. A bidder is considered ``active'' on a license in the current
round if it either is the high bidder at the end of the previous
round's bidding period and does not withdraw the high bid in the
current round, or submits an acceptable bid in the current round.
Placing and removing a bid in the same round does not count toward
activity. A bidder's activity level in a round is the sum of the
bidding units associated with licenses on which the bidder is active.
The minimum required activity level is expressed as a percentage of the
bidder's maximum bidding eligibility and increases as the auction
progresses following stage transitions.
(3) Activity Rule Waivers
56. Each bidder will be provided five activity rule waivers that
may be used in any round during the course of the auction. 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.
57. 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.
58. A bidder with insufficient activity who wants to reduce its
bidding eligibility rather than use an activity rule waiver must
affirmatively override the automatic waiver mechanism during the
bidding period. In this case, the bidder's eligibility is permanently
reduced, and it will not be permitted to later regain its lost bidding
eligibility.
59. Finally, 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 during a bidding period in which no bids are
submitted, the auction will remain open. (Note that an automatic waiver
invoked in a round in which there are no new valid bids will not keep
the auction open.) Thus in the later rounds of the auction, if a bidder
does not intend to bid but wants to ensure that the auction does not
close, it should enter a proactive waiver in place of a bid.
(4) Auction Stages
60. The auction is composed of three stages, which are each defined
by an increasing activity rule. Below are the proposed activity levels
for each stage of the WCS auction. The Commission reserves the
discretion to alter the activity percentages.
61. 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 encompassing at least 60 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-thirds (\5/3\).
62. 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\).
63. 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\).
64. CAUTION: Since activity requirements increase in each auction
stage, bidders must carefully check their current activity during the
bidding period of the first round following a stage transition. This is
especially critical for bidders who have standing high bids and do not
plan to submit new bids. In past auctions, some bidders have
inadvertently lost bidding eligibility or used an activity rule waiver
because they did not reverify their activity status at stage
transitions. Bidders may check their activity against the required
minimum activity level by using the bidding software's bidding module.
(5) Stage Transitions
65. The auction will start in Stage One. Under our general
guidelines it will advance to the next stage (i.e., from Stage One to
Stage Two, and from Stage Two to Stage Three) when in each of three
consecutive rounds of bidding, the high bid has increased on 10 percent
or less of the licenses being auctioned (as measured in bidding units).
However, the Commission retains the discretion to accelerate the
auction by announcement. This determination will
[[Page 12191]]
be based on a variety of measures of bidder activity including, but not
limited to, the auction activity level, the percentages of licenses
(measured in terms of activity units) on which there are new bids, the
number of new bids, and the percentage increase in revenue.
(6) Auction Stopping Rules
66. Barring extraordinary circumstances, bidding will remain open
on all licenses until bidding stops on every license. Thus, the auction
will close for all licenses when one round passes during which no
bidder submits a new acceptable bid on any license, applies a proactive
waiver, or withdraws a previous high bid.
67. The Commission retains the discretion, however, to keep an
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. Thus, the activity rule will apply as usual, and a bidder with
insufficient activity will either lose bidding eligibility or use an
activity rule waiver (if it has any left).
68. Further, in its discretion, the Commission reserves the right
to declare that the auction will end after a specified number of
additional rounds (''special stopping rule''). If the Commission
invokes this special stopping rule, it will accept bids in the final
round(s) only for licenses on which the high bid increased in at least
one of the preceding three rounds. The Commission intends to exercise
this option only in extreme circumstances, such as where the auction is
proceeding very slowly, where there is minimal overall bidding
activity, or where it appears likely that the auction will not close
within a reasonable period of time. Before exercising this option, the
Commission will probably first attempt to increase the pace of the
auction by, for example, moving the auction into the next stage (where
bidders would be required to maintain a higher level of bidding
activity), 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.
(7) Auction Delay, Suspension or Cancellation
69. By public notice or by announcement during the auction, the
Commission 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 Commission, 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 Commission to delay or suspend the auction.
B. Bidding Procedures
(1) Round Structure
70. The initial bidding schedule will be announced by public notice
at least one week before the start of the auction, and will be included
in the registration mailings. Each bidding round contains a single
bidding period followed by the release of the round results.
Participants should note that the round structure for the WCS auction
is a different format than the round structure used in previous
Commission auctions.
71. The Commission 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 Commission may increase or decrease the amount of time
for the performance and review periods, or the number of rounds per
day, depending upon the bidding activity level and other factors.
(2) Minimum Acceptable Bids
72. The Commission does not anticipate establishing a minimum
opening bid for WCS licenses, but reserves the discretion to implement
minimum opening bids for any license. Bidders will be informed if a
minimum opening bid is imposed through a public notice released prior
to the start of the auction. Once there is a standing high bid on a
license, the minimum bid increment for that license will be based on
the level of activity that license has received in the current and
previous rounds. The Commission will release the specific methodology
for calculating this increment before the start of the auction.
(3) High Bids
73. Each bid will be date-and time-stamped when it is entered into
the computer system. In the event of tie bids, the Commission will
identify the high bidder on the basis of the order in which bids are
received by the Commission, starting with the earliest bid.
(4) Bidding
74. During a bidding period, a bidder may submit bids for as many
licenses as it is eligible, as well as withdraw high bids from previous
bidding periods, remove bids placed in the same bidding period, or
permanently reduce eligibility. This is a change in the procedures from
previous auctions. Bidders also have the option of making multiple
submissions and withdrawals per each bidding period, and will not have
a separate period to withdraw bids. If a bidder enters multiple bids
for a license in the same round, the system takes the last bid entered
as that bidder's bid for the round. A bidder withdrawing a high bid
from a previous round, will be subject to the bid withdrawal payments,
but a bidder removing a bid placed in the same round is not subject to
the payments. Eligibility in the first round of the auction is
determined by: (a) the licenses applied for on FCC Form 175 and (b) the
upfront payment amount deposited. The bid submission screens will be
tailored for each bidder to include only those licenses for which the
bidder applied on its FCC Form 175. A bidder also has the option to
tailor its bid submission screens to call up specified groups of
licenses.
75. The bidding software requires each bidder to login to the FCC
Auction System during the bidding period using the FCC Account Number,
Bidder Identification Number, and confidential security codes provided
in the registration materials. Bidders can download and print bid
confirmations after they submit their bids.
(5) Bid Withdrawal
(a) Procedures
76. A high bidder that withdraws its standing high bid from a
previous round is subject to the bid withdrawal payments specified in
Section 27.203 of the Commission's Rules. A bidder that places a bid
and removes it during the same bidding period will not be subject to a
bid withdrawal payment. The procedure for withdrawing a bid and
receiving a withdrawal confirmation is essentially the same as the
procedure for placing a bid. To prevent strategic delays to the close
of the auction, the Commission retains the discretion to limit the
number of times that a bidder may re-bid on a license from which it has
withdrawn a high bid.
77. If a high bid is withdrawn, the license will be offered in the
next round at the second highest bid price, which may be less than, or
equal to, in the case of tie bids, the amount of the withdrawn bid,
without any bid increment. The
[[Page 12192]]
Commission will serve as a ``place holder'' on the license until a new
acceptable bid is submitted on that license.
(b) Calculation
78. Generally, a bidder who withdraws a standing high bid during
the course of an auction will be subject to a payment equal to the
lower of (1) the difference between the net withdrawn bid and the
subsequent net winning bid, or (2) the difference between the gross
withdrawn bid and the subsequent gross winning bid for that license.
See 47 CFR Section 27.203. No withdrawal payment will be assessed if
the subsequent winning bid exceeds the withdrawn bid.
(6) Round Results
79. The bids placed during a bidding period are not published until
the conclusion of that bidding period. After a bidding period closes,
the Commission will compile reports of all bids placed, bids withdrawn,
current high bids, new minimum accepted bids, and bidder eligibility
status (bidding eligibility and activity rule waivers), and post the
reports for public access.
80. Reports reflecting bidders' identities and bidder
identification numbers will be available before and during the auction.
Thus, bidders will know in advance of the auction the identities of the
bidders against whom they are bidding.
(7) Auction Announcements
81. The Commission will use auction announcements to announce items
such as schedule changes and stage transitions. All FCC auction
announcements will be available on the FCC remote electronic bidding
system, as well as the Internet and the FCC Bulletin Board System.
(8) Other Matters
82. After the short-form filing deadline, applicants may make only
minor changes to their FCC Form 175 applications. For example,
permissible minor changes include deletion and addition of authorized
bidders (to a maximum of three) and revision of exhibits. Filers should
make these changes on-line, and submit a letter to Kathleen O'Brien
Ham, Chief, Auctions Division, Wireless Telecommunications Bureau,
Federal Communications Commission, 2025 M Street, N.W., Room 5322,
Washington, D.C., 20554 (and mail a separate copy to Josh Roland,
Auctions Division), briefly summarizing the changes. Questions about
other changes should be directed to the FCC Auctions Division at 202-
418-0660.
V. Post-Auction Procedures
A. Down Payments and Withdrawn Bid Payments
83. After bidding has ended, the Commission will issue a public
notice declaring the auction closed (``auction closing notice''),
identifying the winning bids and bidders for each license, and listing
withdrawn bid payments due.
84. Within ten business days after release of the auction closing
notice, each winning bidder must submit sufficient funds to bring the
total amount of money on deposit with the government (upfront payment
less any withdrawal payments) to 20 percent of its high bids, unless it
is an eligible small or very small business who elected to bid using
bidding credits, then it must submit sufficient funds to bring the
total amount of money on deposit with the government (upfront payment
less any withdrawal payments) to 20 percent of its net winning bids
(actual bids less any applicable bidding credits). See 47 CFR Section
1.2107(b). In addition, by the same deadline all bidders must pay any
withdrawn bid amounts due under Section 1.2104(g)(1) of the
Commission's Rules. Upfront payments are applied first to satisfy any
outstanding bid withdrawal payments before being applied toward down
payments. 47 CFR Section 1.2104(g)(2).
B. Long-Form Application (FCC Form 600)
85. Within ten business days after release of the auction closing
notice, winning bidders must submit a properly completed FCC Form 600
application and required exhibits for each WCS license won through the
auction. Winning small business or very small business bidders must
include an exhibit demonstrating their eligibility for the small
business incentives. See 47 CFR Sections 1.2107 (c) and (d). Further
instructions will be provided to auction winners at the close of the
auction.
86. The FCC Form 600 may be filed electronically. Alternatively, a
hard copy plus required 3.5'' properly-formatted diskette copies may be
sent to: FCC Form 600 Filing, Auction No. 14, Federal Communications
Commission, Office of Operations, 1270 Fairfield Road, Gettysburg, PA
17325-7245.
C. Application Processing and Grant; Final Payments
87. Once a high bidder has submitted its down payment and filed an
acceptable FCC Form 600 application, the Commission will release a
public notice announcing acceptance of the long-form application.
Parties will have five days following the public notice to file
petitions to deny. Any responses to petitions to deny are due within
five days. If the Commission dismisses or denies all petitions to deny,
the Commission will announce by public notice that it is prepared to
award a license, and the winning bidder will then have ten business
days to submit the balance of its winning bid. If this payment is made,
the license will be granted.
88. Winning bidders will receive further instructions and detailed
payment information after the auction closes.
D. Refund of Remaining Upfront Payment Balance
89. All applicants who submitted upfront payments but were not
winning bidders for any WCS license may be entitled to a refund of
their remaining upfront payment balance after the conclusion of the
auction. No refund will be made unless there are excess funds on
deposit from that applicant after any applicable bid withdrawal
payments have been paid.
90. Bidders who drop out of the auction completely may be eligible
for a refund of their upfront payments before the close of the auction.
However, bidders who reduce their eligibility and remain in the auction
are not eligible for partial refunds of upfront payments until the
close of the auction. Qualified bidders who have exhausted all their
activity rule waivers, have no remaining bidding eligibility, and have
not withdrawn a high bid during the auction must submit a written
refund request, along with a Taxpayer Identification Number (``TIN'')
and a copy of their bidding eligibility screen print, to: Federal
Communications Commission, Billings and Collections Branch, Attn:
Regina Dorsey or Linwood Jenkins, 1919 M Street, N.W., Room 452,
Washington, D.C. 20554.
91. Bidders can also fax their request to the Billings and
Collections Branch at (202) 418-2843. Once the request has been
approved, a refund will be sent to the address provided on the FCC Form
159.
92. Refund processing generally takes up to two weeks to complete.
Bidders with questions about refunds should contact Regina Dorsey or
Linwood Jenkins at 202-418-1995.
E. Default and Disqualification
93. Any high bidder that defaults or is disqualified after the
close of the
[[Page 12193]]
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)
will be subject to the payments described in Sections 1.2104(g) and
1.2109 of the Commission's Rules. In the event that the amount of those
payments cannot be determined (i.e. until the license has been
reauctioned), the Commission can require a ``deposit'' of at least
three (3) percent of the defaulted bid amount. See In Re C. H. PCS,
Inc., BTA No. B347 Frequency Block C, Order, DA 96-1825 (released
November 4, 1996). See also Wireless Telecommunications Bureau Will
Strictly Enforce Default Payment Rules, Public Notice, DA 96-481 (April
4, 1996). Under certain circumstances the Commission can also reauction
the license to existing or new applicants, or offer it to the other
highest bidders (in descending order) at their final bids. See 47 CFR
Sections 1.2109 (b) and (c). 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 licenses held by the applicant. See 47 CFR Section
1.2107(d).
F. Service and Construction Requirements
94. WCS licenses are required to provide substantial service to
their service areas within ten years. Licensees failing to demonstrate
that they are providing substantial service at the ten year period will
be subject to forfeiture of their licenses.
Federal Communications Commission
William F. Caton,
Acting Secretary.
Attachment A--List of Licenses Offered
The following tables lists the 128 Wireless Communications Service
(``WCS'') licenses to be auctioned. The licenses consist of two
licenses (Frequency Blocks ``A'' and ``B'') in each of 52 Major
Economic Areas (MEAs) and two licenses (Frequency Blocks ``C'' and
``D'') in each of 12 Regional Economic Area Groupings (REAGs). The MEAs
and REAGs are based on the 172 Economic Area (``EAs'') developed by the
Bureau of Economic Analysis of the U.S. Department of Commerce. More
information regarding EAs is available on the Commission's Office of
Engineering and Technology's Internet web page at: http://www.fcc.gov/
oet/info/maps/bea/
Summary of Licenses To Be Auctioned: Blocks A and B Major Economic Areas
----------------------------------------------------------------------------------------------------------------
Major economic area
MEA No. name License No. Pop. Upfront payment
----------------------------------------------------------------------------------------------------------------
RE01--Northeast
ME01.................... Boston................. WSME01A/B 8,672,944 $1,734,588.80
ME02.................... New York City.......... WSME02A/B 29,027,017 5,805,403.40
ME03.................... Buffalo................ WSME03A/B 1,529,735 305,947.00
ME04.................... Philadelphia........... WSME04A/B 7,942,319 1,588,463.80
RE02--Southeast
ME05.................... Washington............. WSME05A/B 7,745,433 1,549,086.60
ME06.................... Richmond............... WSME06A/B 3,897,805 779,561.00
ME07.................... Charlotte-G'boro- WSME07A/B 9,825,342 1,965,068.40
Greenville-Raleigh.
ME08.................... Atlanta................ WSME08A/B 7,341,931 1,468,386.20
ME09.................... Jacksonville........... WSME09A/B 2,168,038 433,607.60
ME10.................... Tampa-St. Petersburg- WSME10A/B 5,528,763 1,105,752.60
Orlando.
ME11.................... Miami.................. WSME11A/B 5,025,606 1,005,121.20
RE03--Great Lakes
ME12.................... Pittsburgh............. WSME12A/B 4,148,373 829,674.60
ME13.................... Cincinnati-Dayton...... WSME13A/B 4,325,459 865,091.80
ME14.................... Columbus............... WSME14A/B 2,100,613 420,122.60
ME15.................... Cleveland.............. WSME15A/B 5,077,339 1,015,467.80
ME16.................... Detroit................ WSME16A/B 10,041,377 2,008,275.40
ME17.................... Milwaukee.............. WSME17A/B 4,634,011 926,802.20
ME18.................... Chicago................ WSME18A/B 12,495,510 2,499,102.00
ME19.................... Indianapolis........... WSME19A/B 2,753,182 550,636.40
ME20.................... Minneapolis-St. Paul... WSME20A/B 6,018,051 1,203,610.20
ME21.................... Des Moines-Quad Cities. WSME21A/B 2,733,385 546,677.00
RE04--Mississippi
Valley
ME22.................... Knoxville.............. WSME22A/B 1,364,665 272,933.00
ME23.................... Louisville-Lexington- WSME23A/B 4,059,317 811,863.40
Evansville.
ME24.................... Birmingham............. WSME24A/B 3,082,737 616,547.40
ME25.................... Nashville.............. WSME25A/B 2,002,283 400,456.60
ME26.................... Memphis-Jackson........ WSME26A/B 3,850,949 770,189.80
ME27.................... New Orleans-Baton Rouge WSME27A/B 4,310,367 862,073.40
ME28.................... Little Rock............ WSME28A/B 2,309,255 461,851.00
ME29.................... Kansas City............ WSME29A/B 2,903,432 580,686.40
ME30.................... St. Louis.............. WSME30A/B 4,436,804 887,360.80
RE05--Central
ME31.................... Houston................ WSME31A/B 5,513,511 1,102,702.20
ME32.................... Dallas-Fort Worth...... WSME32A/B 9,575,762 1,915,152.40
ME33.................... Denver................. WSME33A/B 3,952,116 790,423.20
ME34.................... Omaha.................. WSME34A/B 1,638,440 327,688.00
ME35.................... Wichita................ WSME35A/B 1,094,213 218,842.60
ME36.................... Tulsa.................. WSME36A/B 1,259,636 251,927.20
ME37.................... Oklahoma City.......... WSME37A/B 1,695,572 339,114.40
[[Page 12194]]
ME38.................... San Antonio............ WSME38A/B 2,944,684 588,936.80
ME39.................... El Paso-Albuquerque.... WSME39A/B 2,114,287 422,857.40
ME40.................... Phoenix................ WSME40A/B 3,458,935 691,787.00
RE06--West
ME41.................... Spokane-Billings....... WSME41A/B 1,727,716 345,543.20
ME42.................... Salt Lake City......... WSME42A/B 2,444,454 488,890.80
ME43.................... San Francisco-Oakland- WSME43A/B 11,956,167 2,391,233.40
San Jose.
ME44.................... Los Angeles-San Diego.. WSME44A/B 19,333,536 3,866,707.20
ME45.................... Portland............... WSME45A/B 2,999,719 599,943.80
ME46.................... Seattle................ WSME46A/B 3,990,811 798,162.20
RE07--Alaska
ME47.................... Alaska................. WSME47A/B 550,043 110,008.60
RE08--Hawaii
ME48.................... Hawaii................. WSME48A/B 1,108,229 221,645.80
RE09--Guam and Northern
Mariana Islands
ME49.................... Guam and Northern WSME49A/B 176,000 35,200.00
Mariana Islands.
RE10--Puerto Rico and
U.S. Virgin Islands
ME50.................... Puerto Rico and U.S. WSME50A/B 3,623,846 724,769.20
Virgin Islands.
RE11--American Samoa
ME51.................... American Samoa......... WSME51A/B 47,000 9,400.00
RE12--Gulf of Mexico
ME52.................... Gulf of Mexico......... WSME52A/B 0 5,000.00
-------------------------------------
Totals.............. ....................... ....................... 252,556,719 50,516,343.80
----------------------------------------------------------------------------------------------------------------
Summary of Licenses To Be Auctioned: Blocks C and D Regional Economic Area Groupings
----------------------------------------------------------------------------------------------------------------
Regional economic area
Region No. grouping name License No. Pop. Upfront payment
----------------------------------------------------------------------------------------------------------------
RE01.................... Northeast.............. WSRE01C/D 47,172,015 $4,717,201.50
RE02.................... Southeast.............. WSRE02C/D 41,532,918 4,153,291.80
RE03.................... Great Lakes............ WSRE03C/D 54,327,300 5,432,730.00
RE04.................... Mississippi Valley..... WSRE04C/D 28,319,809 2,831,980.90
RE05.................... Central................ WSRE05C/D 33,247,156 3,324,715.60
RE06.................... West................... WSRE06C/D 42,452,403 4,245,240.30
RE07.................... Alaska................. WSRE07C/D 550,043 55,004.30
RE08.................... Hawaii................. WSRE08C/D 1,108,229 110,822.90
RE09.................... Guam and Northern WSRE09C/D 176,000 17,600.00
Mariana Islands.
RE10.................... Puerto Rico and U.S. WSRE10C/D 3,623,846 362,384.60
Virgin Islands.
RE11.................... American Samoa......... WSRE11C/D 47,000 4,700.00
RE12.................... Gulf of Mexico......... WSRE12C/D 0 2,500.00
-------------------------------------
Totals.............. ....................... ....................... 252,556,719 25,258,171.90
----------------------------------------------------------------------------------------------------------------
Attachment B--Electronic Filing of FCC Form 175
The Commission has implemented a remote access system to allow
applicants to submit their FCC Form 175 applications electronically.
The remote access system for initial filing of the FCC Form 175
applications will generally be available 24 hours per day beginning at
approximately the same time as the release of the Bidder Information
Package. FCC Form 175 applications that are filed electronically using
this remote access system must be submitted and confirmed by 5:30 p.m.
ET on March 25, 1997. Late applications or unconfirmed submissions of
electronic data will not be accepted. The electronic filing process
consists of an initial filing period and a resubmission period to make
minor corrections.
Parties interested in filing FCC Form 175 applications
electronically may do so via a (202) area code telephone service with
no additional access charge or via a 900 number telephone service at a
charge of $2.30 per minute. The first minute of connection time to the
900 number service will be at no charge.
Similarly, parties interested in reviewing FCC Form 175
applications electronically will do so via the 900 telephone service at
a charge of $2.30 per minute. The first minute of connection time to
the 900 number service will be at no charge.
Those applicants who wish to file their FCC Form 175 electronically
or review other FCC Form 175 applications on-line will need the
following hardware and software:
Hardware Requirements
* CPU: Intel 80486 or above.
* RAM: 8MB RAM (more recommended if you intend to open multiple
applications).
* Hard Disk: 12MB available disk space.
* Modem: v.32bis 14.4kbps Hayes compatible modem.
* Monitor: VGA or above.
* Mouse or other pointing device.
[[Page 12195]]
To create backup installation disks for the FCC Form 175
Application, you will need the following:
* 1.44MB 3.5'' Floppy Drive.
* Three blank MS-DO formatted 1.44MB floppy disks.
Software Requirements
* FCC Form 175 Application Software (available through the Internet
and the FCC Bulletin Board System).
* Microsoft Windows 3.1 or Microsoft Windows for Workgroups v3.11
in an enhanced mode.
Note: The FCC Form 175 Application has not been tested in a
Macintosh, OS/2, or Windows95 environment. Therefore, the FCC will
not support operating systems other than Microsoft Windows 3.1 or
Microsoft Windows for Workgroups v3.11 in an enhanced mode. This
includes any other emulated Windows environment. If your Windows is
in a networked environment, you should check with your local network
administrator for any potential conflicts with the PPP (Point-to-
Point Protocol) Dialer that is incorporated into the FCC Form 175
Application. This usually includes any TCP/IP installed network
protocol.
The PPP Dialer that is incorporated into the FCC Form 175
Application will establish a point-to-point connection from your PC to
the FCC Network. This point-to-point connection is not routed through
the Internet.
Applicants who wish to file their FCC applications electronically
or who wish to view other applicants' applications must first download
the software from either the Internet or the FCC Bulletin Board System.
Applicants must download the following compressed files to install the
software: f175v10a.exe, f175v10b.exe, f175v10c.exe.
Internet Access
In order to download the compressed files from the Internet, you
will need to have access to the Internet and an ftp client software as
follows:
* World Wide Web: ftp://ftp.fcc.gov.
Once you connect to the FCC ftp server, select the following
directory and download the following files:
Directory: /pub/Auctions/WCS/Auction__14/Programs.
File: f175v10a.exe, f175v10b.exe, f175v10c.exe.
* FTP: The following instructions are for the command line version
of ftp.
1. Connect to the FCC ftp server by typing ftp ftp.fcc.gov.
2. At the user name prompt, type anonymous [Enter].
3. At the password prompt, type your Internet e-mail address
[Enter].
4. To allow the file to be downloaded type: binary [Enter].
5. Change your current directory to the Programs directory by
typing: cd /pub/Auctions/WCS/Auction__14/Programs [Enter].
6. Use the get command to download the files from the FCC ftp
server by typing:
get f175v10a.exe [Enter]
get f175v10b.exe [Enter]
get f175v10c.exe [Enter]
7. If you wish to exit, type: bye [Enter].
* Gopher: gopher.ftp.fcc.gov or use any gopher to get to ``all the
gophers in the world'' then `U.S.' then `DC' then `FCC'.
Dial-In Access to the FCC Auction Bulletin Board System (BBS)
The FCC Auction Bulletin Board System provides dial-in access for
the FCC Form 175 Application Software. In order to access the FCC
Auction BBS, use a communications package that can handle at least
xmodem protocol (e.g., pcAnyWhere, Telix, Procomm) to dial in to (202)
682-5851. Use the settings of 8 data bits, no parity and 1 stop bit
(8,N,1).
* For new users follow steps 1-5, otherwise go to step 6 in the
ANSI Protocol Instructions section or the Non-ANSI Protocol
Instructions section (whichever is applicable):
1. Type New and press [Enter]. If the word ANSI is blinking, type Y
for yes. If the word ANSI is not blinking, type N for No.
2. Type in your first and last name and press [Enter]. This will be
your login name.
3. Type in Y and press [Enter] when asked to verify your login
name.
4. Type in what you want your password to be and press [Enter].
5. Retype the password for verification and press [Enter].
*ANSI Protocol Instructions (once the account is generated):
6. Type W for WCS Auction Files and press [Enter].
7. Type A for Auction 14 and press [Enter].
8. Type P for Programs and press [Enter].
9. Type C for Current Library and press [Enter].
10. Move the cursor to the file named f175v10a.exe and type
[Control-D] for Download and press [Enter] (You may need to change the
transfer protocol first--please see note below.)
11. The FCC Auction BBS will begin transferring the file. You may
need to give your terminal emulation software a command to receive the
file; please consult your terminal emulation software manual for
instructions concerning how to do so.
12. Type X to return to the Programs menu. Repeat steps 10 and 11
to download the following files: f175v10b.exe, f175v10c.exe.
13. Type X to return to the Programs menu, then type X again. Type
X to Exit and press [Enter] and continue to do so until asked if you
want to Exit the BBS. Press Y for Yes when asked to verify that you
want to exit.
*Non-ANSI Protocol Instructions (once the account is generated):
6. Type W for WCS Auction Files and press [Enter].
7. Type A for Auction 14 and press [Enter].
8. Type P for Programs and press [Enter].
9. Type C for Current Library and press [Enter].
10. Type the letter next to the file named f175v10a.exe and press
[Enter].
11. Type D for Download now and press [Enter] (You may need to
change the transfer protocol first--please see the note below.)
12. The FCC Auction BBS will begin transferring the file. You may
need to give your terminal emulation software a command to receive the
file; please consult your terminal emulation software manual for
instructions concerning how to do so.
13. Repeat steps 10 through 12 to download the following files:
f175v10b.exe, f175v10c.exe.
14. Type X, then type X to Exit and press [Enter] and continue to
do so until asked if you want to Exit the BBS. Press Y for Yes when
asked to verify that you want to exit.
Note: To download files, you will need to match the transfer
protocol on your BBS account to the transfer protocol set in your
terminal emulation software. To set the BBS transfer protocol,
return to the initial menu and type L for Library and [Enter], P for
Preferences and [Enter], and P for File Transfer Protocol and
[Enter]. Type the letter next to the protocol you desire and press
[Enter]. You may now download files.
Extracting the FCC Form 175 Application
The FCC Form 175 Application files are downloaded in a self-
extracting, compressed file format. When you have downloaded all of the
compressed files for the FCC Form 175 Application, you must extract the
FCC Form 175 Application from those files. To extract the software,
start File Manager in the Main Program group, open the file folder
where you downloaded the files, and double-click on f175v10a.exe. A
message will appear listing the default directory to which the software
will extract. If this directory does not exist, it will be created
automatically. Press Unzip to begin extracting the software from the
compressed file.
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When the extraction is complete, a message will appear listing the
number of files that were unzipped. Press OK and repeat the above
process for the remaining compressed files (f175v10b.exe,
f175v10c.exe). Be sure to extract to the same directory as the first
compressed file.
Installing the FCC Form 175 Application
After you extract the software from the compressed files, you must
install the FCC Form 175 Application. To install the software, start
File Manager, open the file folder to which you extracted the software
and double-click on setup.exe.
When the setup program begins, a screen will appear listing the
default directory to which the software will install. Press the Install
button, then press OK to install to the specified directory. If the
directory does not exist, the setup program will create it
automatically.
When the installation is complete, a message may appear asking you
to restart Windows so that the changes made by the installation may
take effect. Press Restart to restart Windows, or press Stay Here to
restart at a later time. Do not use the FCC Form 175 Application until
you restart Windows.
Creating Backup Installation Disks for the FCC Form 175 Application
To create backup installation disks for the FCC Form 175
Application, go to File Manager, open the file folder to which you
extracted the software, double-click on backup.bat, and follow the
instructions on the screen.
Running the FCC Form 175 Application
When the installation process is complete, you will have a new
Program Manager group called FCC Form 175 Application v10 with the
following icons: Configure PPP, FCC Form 175 Submit, FCC Form 175
Review, Suggestion Box, Readme, and Uninstall.
You must verify/modify the parameters in the Configure PPP program
prior to establishing a PPP connection. Please consult the readme.txt
file included with the software for information regarding Configure
PPP.
Double-click on an icon to start the respective system.
Uninstalling the FCC Form 175 Application
To uninstall the FCC Form 175 Application, double-click on the
Uninstall icon in the FCC Form 175 v10 program group. Press Start to
uninstall the software.
Please note that the Uninstall program will remove ALL versions of
the software located in that installation directory.
Alternatively, you may uninstall the FCC Form 175 Application by
deleting the directory to which you installed the software, then
switching to Program Manager and deleting the FCC Form 175 v10 icons
and group.
Help
Detailed instructions for using all FCC Remote Electronic Auction
System software can be found in the readme file associated with the
software and in the context-sensitive help function associated with
each software system.
For technical assistance in installing or using the FCC Form 175
Application, contact the FCC Technical Support Hotline at (202) 414-
1250. The FCC Technical Support Hotline will be generally available
Monday through Friday, from 9 a.m. to 6 p.m. ET.
Attachment C--Guidelines for Completing FCC Form 175 and Exhibits
A. FCC Form 175
Because of the significance of the Form 175 application to the
auction, bidders should especially note the following:
Electronic filing only: Applicants for the WCS auction must submit
their FCC Form 175 applications by means of electronic filing.
Applicants should note that any attachments must be submitted in ASCII
text (.TXT) format.
Items 2-5: Give a street address (not a Post Office box number) for
the applicant, suitable for mail or private parcel delivery. The FCC
will send all registration materials and other written communications
to the applicant at this address.
Item 6: Applicants should verify that this item is pre-filled with
the number ``14.'' If this item is blank or contains another number,
applicants should confirm that they entered ``14'' on the initial FCC
Form 175 Welcome Screen.
Item 7: Applicants must create a ten-digit FCC Account Number,
which the Commission will use to identify and track applicants:
* A bidder that has a taxpayer identification number (TIN) must
create this FCC account number by using its TIN, plus the prefix of
``0'' (i.e., 0123456789). A TIN is either the Employer Identification
Number (EIN) in the case of a business, or the Social Security Account
Number (SSAN) in the case of an individual.
* If--and only if--an applicant does not have a taxpayer
identification number, the applicant should use its ten-digit area code
and telephone number (i.e., 2025551234) on an interim basis. However,
the FCC must have a TIN before it will be able to issue a license or
refund upfront payments.
Each applicant must include its FCC Account Number when submitting
amendments, additional information, or other correspondence or
inquiries regarding its application, and must include this same number
on each FCC Form 159 (FCC Remittance Advice) accompanying required
auction deposits or payments.
Item 8: Applicants must indicate their legal classification.
Limited liability companies or joint ventures should check the
``Other'' box and indicate their classification in the blank.
Items 9 and 10: A box does not need to be checked in Item 9 unless
small business status is selected in Item 10. Applicants should be
aware that they will be committed to their election choices.
(Applicants are also requested to indicate their status as a rural
telephone company, minority-owned business or woman-owned business as
well, so the FCC can monitor its performance in promoting economic
opportunities for these designated entities.) Be advised that this is
the sole opportunity applicants have to elect small business status and
bidding credit level (if applicable), and there is no opportunity to
change the election(s) made once the short-form filing deadline passes.
* Small or very small business applicants eligible for bidding
credits should check that gross revenues do not exceed the maximum
dollar amount specified in the FCC rules governing the auctionable
service in Item 9.
* Small or very small business applicants should enter the
applicable bidding credit in Item 10: either 25 or 35 percent.
Applicants should be aware that this is the sole opportunity that they
will have to elect the appropriate bidding credit.
* Applicants should leave the Installment Payment Plan Type blank,
as none is available for this auction.
Item 11: For each license on which they seek bidding eligibility,
applicants must identify the market number in the Market No. column,
and the frequency block or blocks in the Frequency Block column;
frequency blocks are A and B for MEAs and C and D for REAGs. Applicants
that wish to bid on all frequency blocks on all markets should check
the ``ALL'' boxes in the Market No. and Frequency Block/Channel No.
headings.
Applicants should identify all licenses they want to be eligible to
bid on in the auction in Item 11. Be advised
[[Page 12197]]
that there is no opportunity to change this list once the short-form
filing deadline passes. The FCC Auction System will not accept bids on
licenses an applicant has not applied for on its FCC Form 175.
Item 12: Applicants must list the name(s) of the person(s) (no more
than three) authorized to represent them at the auction. Only those
individuals listed on the FCC Form 175 will be authorized to place or
withdraw bids for the applicant during the auction.
Certifications: Applicants should carefully read the list of
certifications on the FCC Form 175. These certifications help to ensure
a fair and competitive auction and require, among other things,
disclosure to the Commission of certain information on applicant
ownership and agreements or arrangements concerning the auction.
Additionally, the applicant must certify that it is not in default on
any Commission licenses and that it is not delinquent on any extension
of credit from any federal agency. Submission of an FCC Form 175
application constitutes a representation by the certifying official
that he or she is an authorized representative of the applicant, has
read the form's instructions and certifications, and that the contents
of the application and its attachments are true and correct. Submission
of a false certification to the Commission may result in penalties,
including monetary forfeitures, license forfeitures, ineligibility to
participate in future auctions, and/or criminal prosecution.
Contact person: If the Commission wishes to communicate with the
applicant by telephone or fax, those communications will be directed to
the contact person identified on the FCC Form 175. Space is provided
for a telephone number, fax number, and e-mail address. All written
communications and registration information will be directed to the
applicant's contact person at the address specified on the FCC Form
175. Applicants must provide a street address; no P.O. Box addresses
may be used.
Completeness: Applicants must submit all information required by
FCC Form 175 and by applicable rules. Failure to submit required
information will result in dismissal of the application and inability
to participate in the auction.
Continuing Accuracy: Each applicant is responsible for the
continuing accuracy and completeness of information furnished in the
FCC Form 175 and its exhibits. See 47 CFR Section 1.65. It is the
staff's position that ten business days from a reportable change is a
reasonable period of time in which applicants must amend their FCC Form
175s. Applicants are reminded that Certification (6) on FCC Form 175
includes consent to be audited.
B. Exhibits and Attachments
In addition to FCC Form 175 itself, applicants must submit
additional information required by the FCC's rules. Although we do not
require a particular organization or format for this information, we
have developed the following guidelines that will facilitate the
processing of short-form applications. We encourage applicants to
submit this information using the following format. All exhibits must
be in ASCII text (.TXT) format.
Exhibit A--Applicant Identity and Ownership Information: 47 CFR
Section 1.2105(a)(2) requires each applicant to fully disclose the real
party or parties-in-interest in an exhibit to its FCC Form 175
application. This information should provide the name, citizenship and
address of all partners, if the applicant is a partnership; of a
responsible officer or director, if the applicant is a corporation; of
the trustee, if the applicant is a trust; or, if the applicant is none
of the foregoing, list the name, address and citizenship of a principal
or other responsible person.
Exhibit B--Agreements with Other Parties/Joint Bidding
Arrangements: Applicants must attach an exhibit identifying all parties
with whom the applicant has entered into partnerships, joint ventures,
consortia or other agreements, arrangement or undertakings of any kind,
relating to the licenses being auctioned, including any such agreements
relating to post-auction market structure. 47 CFR Section
1.2105(a)(2)(viii).
Be aware that pursuant to Certification (4) on the FCC Form 175,
the applicant certifies that it will not enter into any explicit or
implicit agreements or understandings of any kind with parties not
identified in the application regarding the amount to be bid, bidding
strategies or the particular licenses on which the applicant will or
will not bid. See 47 CFR Section 1.2105(a)(2)(ix). To prevent
collusion, the Commission's rules generally prohibit communications
during the course of the auction among applicants for the same license
areas when such communications concern bids, bidding strategies, or
settlements. 47 CFR Section 1.2105(c).
Exhibit C--Status as a Small or Very Small Business Applicant:
Applicants claiming status as a small or very small business must
attach an exhibit regarding this status.
* Small or very small business applicants must state the average
gross revenues for the preceding three years for the applicant
(including affiliates), as prescribed by 47 CFR Section 27.210.
Certification that the average gross revenues for the preceding three
years do not exceed the required limit is not sufficient.
Exhibit D--Information Requested of Designated Entities: Applicants
owned by minorities or women as defined in 47 CFR Section 1.2110(b), or
who are rural telephone companies, may attach an exhibit regarding this
status. This information, in conjunction with the information in Item
10, will assist the Commission in monitoring the participation of
designated entities in its auctions.
Exhibit E--Miscellaneous Information: Applicants wishing to submit
additional information should include it in Exhibit E.
Applicants are reminded that all information required in connection
with applications to participate in spectrum auctions is necessary to
determine the applicants' qualifications, and as such will be available
for public inspection. Required proprietary information may be
redacted, or confidentiality may be requested, following the procedures
set out in 47 CFR Section 0.459. Any such requests should be submitted
in writing to Kathleen O'Brien Ham, Chief, Auctions Division, Wireless
Telecommunications Bureau, Federal Communications Commission, 2025 M
Street, N.W., Room 5322, Washington, D.C., 20554 (with a separate copy
mailed to Josh Roland, Auctions Division), in which case the applicant
must indicate in Exhibit E that it has filed a confidentiality request.
Because the required information bears on applicants' qualifications,
the Commission envisions that confidentiality requests will not be
routinely granted.
Waivers: Applicants requesting waiver of any rules must submit a
statement of reasons sufficient to justify the waiver sought.
Attachment D--Summary Listing of Documents From the Commission and the
Wireless Telecommunications Bureau Addressing Application of the Anti-
Collusion Rules
To date, discussion concerning the anti-collusion rules may be
found in the following Commission and Bureau items:
Commission Decisions
Second Report and Order in PP Docket No. 93-253, FCC 94-61, 9 FCC
[[Page 12198]]
Rcd 2348 (1994), 59 FR 22980 (May 4, 1994), paragraphs 221-226.
Fifth Report and Order in PP Docket No. 93-253, FCC 94-178, 9 FCC
Rcd 5532 (1994), 59 FR 37566 (July 22, 1994), paragraphs 91-92.
Second Memorandum Opinion and Order in PP Docket No. 93-253, FCC
94-215, 9 FCC Rcd 7245 (1994), 59 FR 44272 (Aug. 26, 1994), paragraphs
48-55.
Fourth Memorandum Opinion and Order in PP Docket No. 93-253, FCC
94-264, 9 FCC Rcd 6858 (1994), 59 FR 24947 (May 18, 1994), paragraphs
47-60.
Memorandum Opinion and Order in PP Docket No. 93-253, FCC 94-295, 9
FCC Rcd 7684 (1994), 59 FR 64159 (Dec. 13, 1994), paragraphs 8-12.
Wireless Telecommunications Bureau Decisions
Order in PP Docket No. 93-253 and MM Docket No. 94-131, DA 95-2292,
(released November 3, 1995).
Public Notices
``Wireless Telecommunications Bureau Clarifies Spectrum Auction
Anti-Collusion Rules,'' Public Notice, DA 95-2244 (released October 26,
1995).
``Wireless Telecommunications Bureau Provides Guidance on the Anti-
Collusion Rule for D, E and F Block Bidders,'' Public Notice, DA 96-
1460 (released August 28, 1996).
Letters From the Office of General Counsel and the Wireless
Telecommunications Bureau
Letter to Gary M. Epstein and James H. Barker from William E.
Kennard, General Counsel, Federal Communications Commission (released
October 25, 1994).
Letter to Alan F. Ciamporcero from William E. Kennard, General
Counsel, Federal Communications Commission (released October 25, 1996).
Letter to R Michael Senkowski from Rosalind K. Allen, Acting Chief,
Commercial Radio Division, Wireless Telecommunications Bureau (released
December 1, 1994).
Letter to Leonard J. Kennedy from Rosalind K. Allen, Acting Chief,
Commercial Radio Division, Wireless Telecommunications Bureau (released
December 14, 1994).
Letter to Jonathan D. Blake and Robert J. Rini from Kathleen
O'Brien Ham, Chief, Auctions Division, Wireless Telecommunications
Bureau, DA 95-2404 (released November 28, 1995).
Letter to Mark Grady from Kathleen O'Brien Ham, Chief, Auctions
Division, Wireless Telecommunications Bureau, DA 96-587 (released April
16, 1996).
Letter to David L. Nace from Kathleen O'Brien Ham, Chief, Auctions
Division, Wireless Telecommunications Bureau, DA 96-1566 (released
September 17, 1996).
[FR Doc. 97-6418 Filed 3-13-97; 8:45 am]
BILLING CODE 6712-01-P
