[Federal Register Volume 59, Number 103 (Tuesday, May 31, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-13257]
[[Page Unknown]]
[Federal Register: May 31, 1994]
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FEDERAL COMMUNICATIONS COMMISSION
[Report No. AUC-94-01, Auction No. 1]
Common Carrier Public Mobile Services Information Auction Notice
and Filing Requirements for Ten Nationwide Licenses for Personal
Communications Services in the 900 MHz Band
May 23, 1994.
The Federal Communications Commission (``FCC'') plans to hold a
simultaneous multiple round auction for ten nationwide Personal
Communications Service (PCS) licenses in the 900 MHz band (``narrowband
PCS''). The auction will begin at 10 a.m. on Monday, July 25, 1994.
Bidding will begin at 9 a.m. and end at 6 p.m. each day thereafter
until bidding has closed on all licenses. The auction will be held in
the Blue Room at the Omni Shoreham Hotel at 2500 Calvert Street NW.,
Washington DC, Telephone number (202) 234-0700. Those wishing to
participate in the auction must submit an FCC Form 175 in accordance
with the Commission's rules and the instructions in this Public Notice.
The FCC Form 175 must be received on or before 5:30 p.m. EDT, Friday,
July 1, 1994. Applicants are also required to submit an upfront payment
of $350,000 per license (in U.S. dollars) for the maximum number of
licenses on which they expect to bid in any single round. The upfront
payment must be by wire transfer or cashier's check payable to the
Federal Communications Commission or ``FCC'' and must be received on or
before 3 p.m. EDT on Monday, July 11, 1994. Limited space will be
available at the auction for members of the public to observe the
auction.
1. Summary of Licenses To Be Auctioned
The following lists by market number and frequency block number the
10 nationwide narrowband PCS licenses grouped by category of license.
All ten licenses will be auctioned simultaneously:
(1) Five 50 kHz channels, each paired with another 50 kHz channel:
Market No. N-1, Frequency Block No. 1: 940.00-940.05 and 901.00-901.05
MHz;
Market No. N-2, Frequency Block No. 2: 940.05-940.10 and 901.05-901.10
MHz;
Market No. N-3, Frequency Block No. 3: 940.10-940.15 and 901.10-901.15
MHz;
Market No. N-4, Frequency Block No. 4: 940.15-940.20 and 901.15-901.20
MHz; and,
Market No. N-5, Frequency Block No. 5: 940.20-940.25 and 901.20-901.25
MHz; **
(2) Three 50 kHz channels, each paired with another 12.5 kHz
channel:
Market No. N-6, Frequency Block No. 6: 930.40-930.45 and 901.7500-
901.7625 MHz;
Market No. N-7, Frequency Block No. 7: 930.45-930.50 and 901.7625-
901.7750 MHz; and,
Market No. N-8, Frequency Block No. 8: 930.50-930.55 and 901.7750-
901.7875 MHz;**
(3) Two 50 kHz unpaired channels:
Market No. N-10, Frequency Block No. 10: 940.80-940.85 MHz.
Market No. N-11, Frequency Block No. 11: 940.85-940.90 MHz,**
Please note that Market No. N-9, Frequency Block No. 9: 940.75-
940.80 MHz will not be offered at the auction. The market numbers and
frequency block numbers outlined above should be used in filling out
FCC Form 175, discussed more fully below. Businesses owned by women
and/or minorities will be eligible for a 25 percent bidding credit on
all license designated by an (**) above. See Third Report and Order at
72-80.
2. Procedures, Terms, and Conditions
The auction will be conducted by Tradewinds International, Inc. and
Cantor Fitzgerald Securities, Inc. Prospective bidders must thoroughly
familiarize themselves with the procedures, terms and conditions
(collectively, ``Terms''), contained in the Second Report and Offer in
PP Docket No. 93-253, FCC 94-61, released April 20, 1994, and the Third
Report and Order in PP Docket No. 93-253, FCC 94-98, released May 10,
1994. Copies of the Second Report and Order are available for a fee
from International Transcription Services, Inc. at (202) 857-3800. A
copy of the Third Report and Order will be included in the Bidder
Information Package (``Bidder Package'') described below. The Terms
contained in the Commission Reports and Orders and in the Bidder
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 the Terms before making any bid.
3. Bidder Package
The Bidder Package (as amended and supplemented from time to time)
may be obtained by prospective bidders by contacting Tradewinds
International, Inc. at General Aviation Terminal, No. 7 Thomas Avenue,
Washington National Airport, Washington, DC, 20001, telephone number
(202) 637-3221, facsimile number (202) 637-3222. The business hours of
Tradewinds International Inc., are Monday through Friday 9 a.m. to 6
p.m., EDT.
The Bidder Package will contain the following information:
(1) A list of licenses to be offered simultaneously;
(2) The procedures, terms and conditions of the auction;
(3) A copy of the Third Report and Order in PP Docket No. 93-253,
FCC 94-98;
(4) An Application Form to participate in an FCC auction (``FCC
Form 175'' and ``175S'' or ``Short-Form'') including instructions on
filling out the form and a sample of a completed Form 175;
(5) An FCC Remittance Advice (FCC Form 159) to be submitted by
bidders together with their upfront payment, down payment and final
payment (described below);
(6) Wire transfer instructions;
(7) An application for a narrowband PCS license (FCC Form 401 or
``Long-Form'' application) to be submitted by winning bidders only; and
(8) Other general auction information.
4. Short Form Application (FCC Form 175)
In order to be eligible to bid in the auction, bidders must submit
an application for one or more narrowband PCS licenses on FCC Form 175
prior to the auction in compliance with applicable FCC Rules and
Regulations and with the requirements set forth below. Only the person
or persons identified on FCC Form 175 as qualified to make a bid will
be permitted to bid at the auction. The FCC Form 175 may be submitted
anytime after the release of this Public Notice but must be received no
later than 5:30 p.m. EDT, Friday, July 1, 1994. Certain information
necessary to complete FCC Form 175, such as market numbers and
frequency block numbers for nationwide narrowband PCS licenses as well
as the Auction No., may be found at the top of this Public Notice.
Completion of Form 175
Applicants are required to complete all the items on the
application. The applicant must also identify all parties to the
application, including members of bidding consortia, joint ventures or
any other agreements, arrangements or understandings relating to the
auction or post-auction market structure. In completing FCC Form 175,
bidders should note the following:
1. In item 6 of FCC Form 175, Auction No., applicants should enter
``1''.
2. Item 7 requires applicants to make up a ten digit FCC Account
Number, a personal identification number that the Commission will use
to identify and track applications. Applicants have two options to
create this FCC Account Number. Option 1--an applicant may use its
taxpayer identification number (TIN) with a prefix of ``0'', i.e.,
0123456789. Option 2--an applicant may use its ten digit telephone
number (i.e., 5552345678). Each applicant should use this same number
when submitting additional information/material regarding its
application, including any required fees submitted to the Commission on
FCC Remittance Advice, (i.e. use the same number for the Form 175 and
the FCC Account Number on FCC Form 159). This number must be used
whenever an applicant writes, calls, or otherwise inquires about its
application. Applicants will also need this number to register for the
auction.
3. Items 9 and 10 will be used to determine whether the applicant
is claiming a preference in the bidding process. As discussed more
fully in the Third Report and Order, certain preferential measures are
available to small businesses and businesses owned by members of
minority groups and/or women. Applicants claiming a preference should
refer to Sec. 1.2110 of the Commission's Rules (47 CFR 1.2110) for
definitions and eligibility requirements applicable to small businesses
and businesses owned by women and minorities. See also Third Report and
Order at 66-90.
4. In Item 11, applicants should identify the market number for
each narrowband PCS license they want to bid on. The market number for
each license is listed above. Applicants should list the market number
for each license they are interested in bidding on in the first column
labeled ``Market No.'' If applicants want to bid on more than five
markets, they should list each additional market number on FCC Form
175-S. For the Frequency Block No. in item 11, applicants should
indicate the frequency block numbers associated with each license they
expect to bid on at the auction.
5. In item 12, applicants should list the name(s) of a person(s)
authorized to represent them at the auction. Only one bidding number
per applicant will be assigned.
6. Applicants should read the ``Certifications'' listed on the FCC
Form 175 carefully before signing the application. 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. Submission of a false certification to the Commission may
result in penalties, including monetary forfeitures, license
revocation(s), being barred from future auctions, and/or criminal
prosecution.
The Commission has established a Help Line to assist applicants in
filling FCC Form 175. That number is (202) 637-3221. Applicants may
call the Help Line for assistance Monday through Friday from 9 a.m. to
6 p.m. EDT.
Microfiche copies of the FCC Form 175 or 175-S are not required.
Failure to sign the FCC Form 175 will result in dismissal of the
application and inability to participate in the auction.
Where to Send the FCC Form 175
In order to be eligible to bid, an FCC Form 175 application must be
received by 5:30 p.m., EDT on Friday, July 1, 1994. Late applications
will not be accepted. Applications should be submitted either by hand
delivery, certified U.S. mail (return receipt requested) or sent by
private courier. Whether mailed, hand delivered or sent by private
courier, applications must be addressed to: Tradewinds International,
Inc., General Aviation Terminal, No. 7 Thomas Avenue, Washington
National Airport, Washington, DC, 20001, Attention: Narrowband PCS
Processing.
Applications will not be accepted if deliver to any other location.
5. Application Fee
No application fee or FCC Form 159 need accompany the FCC Form 175
for the auction.
6. Procedures After FCC Form 175 Applications Are Filed
After the deadline for filing FCC Form 175 applications has passed,
the Commission will process all applications to determine whether they
are accepting for filing. The Commission will issue a Public Notice
listing all applications which are accepted for filing, rejected, and
those which have minor defects that may be corrected. The Public Notice
will also announce the deadline for filing corrected applications. As
described more fully in the Commission's general auction rules,
applicants may only make minor corrections to their FCC Form 175
applications. Applicants will not be permitted to make major
modifications such as changes in ownership to their applications.
Failure to sign an FCC Form 175 cannot be corrected and will cause the
application to be dismissed and the applicant to be ineligible to
participate in the auction. See Sec. 1.2105 of the Commission's Rules.
47 CFR 1.2105.
After the deadline for resubmitting corrected applications the
Commission will release another Public Notice announcing all
applications that have been accepted for filing, including applicants
who have corrected defective applications.
7. Upfront Payments
In order to be eligible to bid at the auction, applicants must
submit an upfront payment together with an FCC Form 159 to the Mellon
Bank. The upfront payment is $350,000 per license for the maximum
number of license on which an applicant expects to bid in any single
round of bidding. Payment must be made in U.S. dollars and must be
received by 3 p.m. EDT, Monday, July 11, 1994, in accordance with the
terms and procedures set forth below and the Commission's Rules. The
upfront payment may be submitted by wire transfer or cashier's check
payable to the ``Federal Communications Commission'' or ``FCC.'' Wire
transfer instructions and the delivery address will be provided in the
Bidder Package. Check(s) must be drawn on a bank whose deposits are
insured by the Federal Deposit Insurance Corporation (FDIC). An
applicant intending to bid on more than one nationwide narrowband
license must submit an upfront payment of $350,000 per license for the
maximum number of licenses on which it intends to bid in any single
round of bidding. The upfront payment submitted by each applicant will
define the maximum number of licenses on which the applicant will be
permitted to bid in any single round of bidding. Narrowband PCS
licensees will be permitted to aggregate up to three licenses. An
applicant may apply for every license on its Form 175, but its actual
bidding in any round will be limited to the number of licenses covered
by the amount of its upfront payment. No later than seven (7) business
days before the auction the Commission will issue a Public Notice
announcing all qualified bidders for the nationwide narrowband PCS
auction. Qualified bidders are those whose Form 175 applications have
been accepted for filing and who have timely submitted their upfront
payment.
8. Registration
All qualified bidders or their designated representatives
identified on Form 175 will be required to register for the auction.
Registration will be held from 1 p.m. to 9 p.m. on Sunday, July 24,
1994 and from 8 a.m. to 9:30 a.m. on Monday July 25, 1994 at the Omni
Shoreham Hotel at 2500 Calvert Street, NW., Washington, DC. A
confidential bidder number will be assigned to each qualified bidder at
registration. Further information regarding registration will be
provided in the Bidder Package. All bidders will be required to bring
two forms of identification, one form of photo identification (e.g., a
valid drivers license or passport) and one additional form of
identification.
9. Method of Competitive Bidding
The winning bidders for the nationwide narrowband PCS licenses will
be selected through a simultaneous multiple round auction. Bids will be
accepted on all licenses in each round of the auction. High bid amounts
will be posted at the end of each round of bidding. Bidding will remain
open on all licenses until bidding closes on every license. Thus,
bidding will stop simultaneously on all licenses.
Bid Submission and Withdrawal Procedures
All bidders or their representatives are required to be present at
the auction site in order to place their bids. Each bidder will be
required to provide its confidential bidder number and FCC account
number in order to place or withdraw a bid. Bids will be placed with
bid assistants on site who will input the bids into the auction
database. All accepted bids for each license and the minimum bid
increment for the next round will be announced at the conclusion of
each bidding round. Bidders will have no less than one hour after
accepted bids are posted to place their bids for the next round. A high
bidder who wants to withdraw its high bid during the course of the
auction may do so subject to the bid withdrawal penalty specified in
the Third Report and Order at 49-59. A high bidder who wants to
withdraw its high bid should notify a bid assistant as soon as possible
after its bid is posted as the high bid. If a high bid is withdrawn,
the license will be offered in the next round at the second high bid
price.
Bid Increments
The bid increment is the amount or percentage by which a bid must
be raised above the previous high bid in order to be accepted as a
valid bid in the current round. The minimum bid in the first round of
bidding will be $.02 per pop per MHz (rounded down to the nearest
$25,000). The bid increment in subsequent rounds will be $.01 per pop
per MHz (rounded down to the nearest $25,000) or 5% of the previous
high bid, whichever is greater. The amount of the minimum bid increment
may be reduced in later rounds as the number of active bidders
declines. The amount of the minimum bid increment for each license will
be announced along with the accepted bids from the preceding round. The
following table shows the amounts of the minimum bid increment for each
category of license:
------------------------------------------------------------------------
Minimum bid Minimum bid
in the increment
Licensecategory first round after first
round\1\
------------------------------------------------------------------------
50/50 kHz paired licenses..................... $500,000 $250,000
50/12.5 kHz paired licenses................... 300,000 150,000
50 kHz unpaired licenses...................... 250,000 125,000
------------------------------------------------------------------------
\1\(or 5% of the previous high bid, whichever is greater)
Activity Rule
In order to ensure that the auction closes within a reasonable
period of time, we will impose an activity rule to prevent bidders from
waiting until the end of the auction before participating. Because of
the relatively small number of licenses being offered in this auction
we will impose a simplified version of the Milgrom-Wilson activity rule
(discussed in the Third Report and Order at 37-40). During the first
stage of the auction bidders will be required to be active on at least
one license in every round of bidding. A bidder will be considered
active on a license if it either is the high bidder from the previous
round or submits a bid which exceeds the previous round's high bid by
at least the amount of the minimum bid increment. Bidders will be
permitted five automatic waivers from the activity rule during the
course of the auction. A bidder must notify a bid assistant of its
intent to exercise one or more of its waivers at the time such bidder
submits its next bid. Bidders in the first stage of the auction who
fall below the required activity level and who have used all five of
the automatic waivers will have their eligibility reduced to 0 and will
not be eligible to bid in future rounds. See Third Report and Order at
36-40. To speed up the auction the Commission may declare at any time
after 15 rounds have passed that the auction will move into a final
stage, with an increased activity level. If the Commission declares
such an additional stage, bidders would be required to be active on the
maximum number of licenses they desire to be awarded. In the final
stage, bidders would have their eligibility reduced to the number of
licenses on which they are active, unless they invoke an automatic
waiver or waivers, in which case they would retain their current
eligibility.
Stopping Rules
Bidding will remain open on all licenses until bidding stops on
every license. The auction will close if one round passes with no new
acceptable bids on my license. Thus, bidding will stop for all
nationwide licenses simultaneously. The Commission, however, may
declare at any time after 20 rounds that the auction will end after one
additional round (or some other specified number of rounds).
Bid Withdrawal, Default or Disqualification Penalty
Any high bidder who withdraws a high bid in any round, defaults by
failing to remit the required 20% down payment within the prescribed
time or is disqualified after bidding is declared closed will be
subject to a penalty described in Section 24.304 of the Commission's
Rules. 47 C.F.R. Sec. 24.304.
Down Payment and Final Payment
The winning bidder for each license must submit sufficient
additional funds (a ``down payment'') to bring the amount of money on
deposit with the government to 20% of their winning bid amount within
five (5) business days after bidding is declared closed. Winning
bidders that are qualified small businesses are required to submit only
a 10% down payment within five (5) business days after bidding is
closed, with an additional 10% due within five (5) business days after
grant of the license. No interest will be paid on any funds on deposit
with the Commission.
10. Long-Form Application (FCC Form 401)
As detailed in the narrowband PCS and general auction rules,
winning bidders must timely submit a properly completed FCC application
for a narrowband PCS license (FCC Form 401) within ten (10) business
days after being notified that they are the winning bidder. The Form
401 must be sent to: Office of the Secretary, Federal Communications
Commission, 1919 M St., NW., room 222, Washington, DC 20554, Attention:
Auction Application Processing Section.
After submission of the FCC Form 401, the Commission will determine
whether there are any reasons why the license should not be granted; if
there are none, it will grant the license. Winning bidders will be
required to pay the remainder of the winning bid amount within five (5)
business days after grant of the license. Qualified small businesses
will be permitted to pay the remaining 80% of their winning amount in
installments over the term of the license. See Third Report and Order
at 86-90. All license grants will be conditioned on timely payment in
full of the bid price.
11. Delay, Suspension, or Cancellation of the Auction
The Commission may by Public Notice or announcement during the
auction, delay, suspend or cancel the auction in the event of natural
disaster, technical obstacle, evidence of an auction security breach,
unlawful bidding activity, administrative necessity, or for any other
reason that affects the fair and competitive conduct of competitive
bidding. In such cases, the Commission may, in its sole discretion,
resume the auction starting from the beginning of the current or some
previous round or may cancel the auction in its entirety.
Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 94-13257 Filed 5-27-94; 8:45 am]
BILLING CODE 6712-01-M
