96-12945. Waiver of Bid Withdrawal Payment Provisions  

  • [Federal Register Volume 61, Number 101 (Thursday, May 23, 1996)]
    [Rules and Regulations]
    [Pages 25807-25808]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-12945]
    
    
    
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    FEDERAL COMMUNICATIONS COMMISSION
    47 CFR Part 24
    
    [DA 96-706]
    
    
    Waiver of Bid Withdrawal Payment Provisions
    
    AGENCY: Federal Communications Commission.
    
    ACTION: Final rule; waiver.
    
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    SUMMARY: On March 6, 1995, Georgia Independent PCS Corporation 
    (Georgia) filed a request for waiver of the bid withdrawal payment 
    provisions applicable to the broadband PCS C block auction. Under the 
    Commission's rules, the amount of the bid withdrawal payment is equal 
    to the difference between the withdrawn bid amount and the amount of 
    the subsequent winning bid, if the subsequent winning bid is lower. No 
    withdrawal payment is assessed if the subsequent winning bid exceeds 
    the withdrawn bid. The Order reduces Georgia's bid withdrawal payment 
    to the minimum bid increment for License B-076 (Chattanooga, TN) in 
    Round 37 of the broadband Personal Communications Services (PCS) C 
    block auction, or $569,898.
    
    EFFECTIVE DATE: May 6, 1996.
    
    FOR FURTHER INFORMATION CONTACT:
    James Hedlund at 202-418-0660.
    
    SUPPLEMENTARY INFORMATION: This Order, adopted May 6, 1996 and released 
    May 6, 1996, is available for inspection and copying during normal 
    business hours in the FCC Reference Center, Room 239, 1919 M Street 
    NW., Washington, DC. The complete text may be purchased from the 
    Commission's copy contractor, International Transcription Services, 
    Inc., 2100 M Street NW., Suite 140, Washington, DC 20037 (202) 857-
    3800.
    
    Order
    
        1. The Wireless Telecommunications Bureau has before it a Request 
    for Waiver of Section 24.704(a)(1) of the Commission's rules filed by 
    Georgia
    
    [[Page 25808]]
    
    Independent PCS Corporation (``Georgia''). By this Order, we hereby 
    resolve Georgia's request. Specifically, this Order reduces Georgia's 
    bid withdrawal payment to the minimum bid increment for License B-076 
    (Chattanooga, TN) in Round 37 of the broadband Personal Communications 
    Services (PCS) C block auction, or $569,898.
        2. Background. On March 6, 1995, Georgia filed a request for waiver 
    of the bid withdrawal payment provisions applicable to the broadband 
    PCS C block auction. Under the Commission's rules, the amount of the 
    bid withdrawal payment is equal to the difference between the withdrawn 
    bid amount and the amount of the subsequent winning bid, if the 
    subsequent winning bid is lower. No withdrawal payment is assessed if 
    the subsequent winning bid exceeds the withdrawn bid.
        3. On May 3, 1996, the Commission issued an Order partially waiving 
    the bid withdrawal payment provisions applicable to the 900 MHz 
    Specialized Mobile Radio (SMR) and broadband PCS C block auctions. The 
    Order resolved the waiver requests of two applicants who submitted 
    erroneous bids which were later withdrawn. The Order also delegated 
    authority to resolve requests for waiver of the bid withdrawal payment 
    provisions involving similar factual circumstances to the Wireless 
    Telecommunications Bureau (``Bureau''). The Order indicated that for a 
    party to be eligible for such a waiver, it must submit a request for 
    waiver accompanied by a sworn declaration attesting to the veracity of 
    the factual circumstances surrounding the erroneous bid submission. In 
    addition, the Bureau was directed to consider such requests on a case-
    by-case basis.
        4. Georgia Waiver Request. In its request, Georgia alleges that due 
    to a clerical or typographical error, it submitted a bid of 
    $119,720,000 for License B-076 (Chattanooga, TN) in Round 37 of the 
    broadband PCS C block auction. Georgia further alleges that the error 
    may have been due in part to a ``flaw'' in the Commission's remote 
    bidding software. Georgia states that it intended to submit the minimum 
    accepted bid for that round and license, or $11,972,000. Georgia 
    attempted to withdraw its $119,972,000 bid during the bid withdrawal 
    period for Round 37 by contacting the FCC telephonically. Due in part 
    to technical problems with the FCC's wide-area network, Georgia claims 
    it was not able to withdraw its erroneous bid until Round 38. The final 
    high bid on this market at the close of the auction was $21,288,000. 
    Consequently, if the bid withdrawal payment requirement were fully 
    enforced, Georgia would be subject to a bid withdrawal payment of 
    $73,824,000. Affidavits by A.J. Paserella, and Robert L. Swearingen, 
    Jr., two of Georgia's authorized bidders, and Mr. Swearingen's 
    secretary, Wanda Queen, describe the events surrounding the erroneous 
    bid submission.
        5. Georgia argues that imposition of the bid withdrawal payment for 
    its erroneous bid would be unduly burdensome and contrary to the public 
    interest. Georgia contends that there is established case law governing 
    mistaken bids that prohibit the requirement of any payment for bids 
    resulting from typographical or clerical errors. It observes that 
    Section 24.822 of the Commission's rules allows for the correction of 
    typographical errors on applicants' short-form applications (FCC Form 
    175s) and that the Auctions Division has granted waiver requests to 
    other C block applicants which sought to correct clerical or 
    typographical errors. Finally, Georgia argues that the most that the 
    Commission should require from bidders who submit erroneous bids is the 
    forfeiture of a single activity rule waiver.
        6. Decision. In the May 3, 1996, Order, the Commission considered 
    the same issues presented here and indicated that full application of 
    the bid withdrawal payment provisions in instances of erroneous bids 
    would cause an extreme and unnecessary hardship on most bidders. On the 
    other hand, the Commission also indicated that a full waiver of these 
    provisions could threaten the economic efficiency of the auction 
    process. The Commission therefore decided to reduce the bid withdrawal 
    payments substantially, taking into consideration the round and stage 
    in which the mistaken bids were submitted and withdrawn.
        7. Among other things, the Commission decided specifically that if 
    a mistaken bid is withdrawn in the same round in which it was 
    submitted, the withdrawal payment should be the greater of (a) the 
    minimum bid increment during the round in which it was submitted or (b) 
    the standard bid withdrawal payment calculated as if the bidder had 
    made a bid at the minimum accepted bid. The Commission applied this 
    calculation to reduce the bid withdrawal payment of MAP Wireless, 
    L.L.C., who withdrew its erroneous bid in the same round in which it 
    was submitted.
        8. Under the facts presented, Georgia has demonstrated that it 
    submitted an erroneous bid of $119,720,000 for License B-076 
    (Chattanooga, TN) in Round 37 of the broadband PCS C block auction. 
    Georgia has further demonstrated that it attempted to withdraw its 
    erroneous bid in Round 37. Georgia submitted a request for waiver 
    accompanied by sworn affidavits attesting to the veracity of the 
    factual circumstances surrounding the erroneous bid. We find that full 
    enforcement of the bid withdrawal payment against Georgia in this 
    instance would not serve the purpose of this rule and would be contrary 
    to the public interest. In accordance with the Commission's May 3 
    Order, we find that a partial waiver of Section 24.704(a)(1) of the 
    Commission's rules is warranted. Specifically, because Georgia 
    attempted to withdraw its erroneous bid in the same round in which it 
    was submitted, we will reduce Georgia's required bid withdrawal payment 
    to the minimum bid increment for License B-076 in Round 37 of the 
    broadband PCS C block auction, or $569,898.
        9. Accordingly, it is ordered that the waiver request submitted by 
    Georgia Independent PCS Corporation is granted to the extent indicated 
    above.
        10. It is further ordered that Georgia Independent PCS Corporation 
    is subject to a bid withdrawal payment requirement of $569,898.
    
    Federal Communications Commission.
    Michele C. Farquhar,
    Chief, Wireless Telecommunications Bureau.
    [FR Doc. 96-12945 Filed 5-22-96; 8:45 am]
    BILLING CODE 6712-01-M
    
    

Document Information

Effective Date:
5/6/1996
Published:
05/23/1996
Department:
Federal Communications Commission
Entry Type:
Rule
Action:
Final rule; waiver.
Document Number:
96-12945
Dates:
May 6, 1996.
Pages:
25807-25808 (2 pages)
Docket Numbers:
DA 96-706
PDF File:
96-12945.Pdf
CFR: (1)
47 CFR 24