Federal Register: December 29, 2000 (Volume 65, Number 251)
DOCID: FR Doc 00-33346
FEDERAL COMMUNICATIONS COMMISSON
Federal Communications Commission
DOCUMENT ID: [Report No. AUC-00-38-C (Auction No. 38); DA 00-2571]
NOTICE: NOTICES
ACTION: Common carrier services:
DOCUMENT ACTION: Notice.
SUBJECT CATEGORY:
Auction of Licenses for the 700 MHz Guard Bands Scheduled for February 13, 2001; Auction Notice and Filing Requirements for 8 Licenses in the 700 MHz Guard Bands Minimum Opening Bids and Other Procedural Issues
DATES: Auction No. 38 is scheduled for February 13, 2001.
DOCUMENT SUMMARY:
This document announces the procedures and minimum opening bids for the upcoming auction of eight Guard Band Manager licenses in the 700 MHz Guard Bands (``Auction No. 38'').
SUMMARY:
Wireless telecommunications services—; 700 MHz guard bands; licenses auction; filing requirements,
SUPPLEMENTAL INFORMATION
This is a summary of a public notice
released November 14, 2000. The complete text of the public notice,
including attachments, is available for inspection and copying during
normal business hours in the FCC Reference Center (Room CYA257), 445
12th Street, SW., Washington, DC 20554. It may also be purchased from
the Commission's copy contractor, International Transcription Services,
Inc. (ITS, Inc.) 1231 20th Street, NW., Washington, DC 20036, (202)
8573800. It is also available on the Commission's web site at http:// www.fcc.gov.
List of Attachments available at the FCC.
Attachment ALicenses to be Auctioned
Attachment BFCC Auction Seminar Registration Form
Attachment CElectronic Filing and Review of the FCC Form 175
Attachment DGuidelines for Completion of FCC Form 175 and Exhibits
Attachment FFCC Bidding Preference/Remote Software Order Form Attachment GAccessing the FCC Network to File FCC Form 175
Attachment HSummary of Documents Addressing the AntiCollusion Rules
Attachment IIncumbent Television Licensees on Channels 5968 I. General Information
A. Introduction
1. This public notice announces the procedures and minimum opening bids for the upcoming auction of eight Guard Band Manager licenses in the 700 MHz Guard Bands (``Auction No. 38''). On October 13, 2000, the Wireless Telecommunications Bureau (``Bureau'') released a public notice, seeking comment on the establishment of reserve prices or minimum opening bids for Auction No. 38, in accordance with the Balanced Budget Act of 1997. In addition, the Bureau sought comment on a number of procedures to be used in Auction No. 38. The Bureau received no comments in response to the Auction No. 38 Comment Public Notice 65 FR 63584 (October 24, 2000).
i. Background of Proceeding
2. The 746806 MHz band has historically been used exclusively by television stations (Channels 6069). Incumbent analog television broadcasters are permitted by statute to continue operations in this band until their markets are converted to digital television (``DTV''). The Budget Act directed the Commission to reallocate this spectrum for public safety and commercial use by December 31, 1997, and to commence competitive bidding for the commercial licenses on the reallocated spectrum after January 1, 2001. In November 1999, Congress enacted a consolidated appropriations statute that revised the latter instruction. This legislation accelerated the schedule for auction of the commercial spectrum bands. Accordingly, the Bureau held an auction that began on September 6, 2000 and concluded on September 21, 2000 (Auction No. 33).
ii. Licenses to Be Auctioned
3. The licenses available in this auction consist of the following licenses that remained unsold in Auction No. 33.
Market No. Market name Block Bandwidth
MEA012............. Pittsburgh, PA......... A 2 MHz
MEA014............. Columbus, OH........... B 4 MHz
MEA028............. Little Rock, AR........ B 4 MHz [[Page 83025]]
MEA034............. Omaha, NE.............. B 4 MHz
MEA037............. Oklahoma City, OK...... B 4 MHz
MEA048............. Hawaii................. B 4 MHz
MEA049............. Guam and the Northern B 4 MHz Mariana Islands.
MEA051............. American Samoa......... B 4 MHz
The frequency allocation for the ``A'' Block license is 746747/
776777 MHz. The frequency allocation for the ``B'' Block licenses is 762764/792794 MHz.
B. Rules and Disclaimers
i. Relevant Authority
4. Prospective bidders must familiarize themselves thoroughly with the Commission's rules relating to the 700 MHz band, contained in title 47, part 27 of the Code of Federal Regulations, and those relating to application and auction procedures, contained in title 47, part 1 of the Code of Federal Regulations. In particular, bidders should also familiarize themselves with the Commission's recent amendments and clarifications to its general competitive bidding rules. See Part 1 Fifth Report and Order, 65 FR 52401 (August 29, 2000).
5. Prospective bidders must also be thoroughly familiar with the procedures, terms and conditions (collectively, ``Terms'') contained in this public notice; the Auction No. 38 Comment Public Notice, 700 MHz Second Report and Order, 65 FR 17594 (April 4, 2000), 700 MHz First Report & Order, 65 FR 3139 (January 20, 2000), 700 MHz Memorandum Opinion and Order (MO&O), 65 FR 42879 (July 12, 2000), Reallocation Report & Order, 63 FR 6669 (February 10, 1998), and Reallocation MO&O 63 FR 63798 (November 17, 1998).
6. The terms contained in the Commission's rules, relevant orders and public notices are not negotiable. The Commission may amend or supplement the information contained in our public notices at any time, and will issue public notices to convey any new or supplemental information to bidders. It is the responsibility of all prospective bidders to remain current with all Commission rules and with all public notices pertaining to this auction. Copies of most Commission documents, including public notices, can be retrieved from the FCC Internet node via anonymous ftp @ftp.fcc.gov or the FCC Auctions World Wide Web site at http://www.fcc.gov/wtb/auctions. Additionally, documents may be obtained for a fee by calling the Commission's copy contractor, International Transcription Service, Inc. (ITS), at (202) 3143070. When ordering documents from ITS, please provide the appropriate FCC number (for example, FCC 005 for the 700 MHz First Report & Order).
ii. Prohibition of Collusion
7. To ensure the competitiveness of the auction process, the Commission's rules prohibit applicants for the same geographic license area from communicating with each other during the auction about bids, bidding strategies, or settlements. This prohibition begins at the shortform application filing deadline, and ends at the down payment deadline after the auction. Bidders competing for licenses in the same geographic license areas are encouraged not to use the same individual as an authorized bidder. A violation of the anticollusion rule could occur if an individual acts as the authorized bidder for two or more competing applicants, and conveys information concerning the substance of bids or bidding strategies between the bidders he/she is authorized to represent in the auction. Also, if the authorized bidders are different individuals employed by the same organization (e.g., law firm or consulting firm), a violation could similarly occur. At a minimum, in such a case, applicants should certify on their applications that precautionary steps have been taken to prevent communication between authorized bidders and that applicants and their bidding agents will comply with the anticollusion rule.
8. The Bureau, however, cautions that merely filing a certifying statement as part of an application will not outweigh specific evidence that collusive behavior has occurred nor will it preclude the initiation of an investigation when warranted. In Auction No. 38, for example, the rule would apply to any applicants bidding for the same MEA. Therefore, applicants that apply to bid for ``all markets'' would be precluded from communicating with all other applicants after filing the FCC Form 175. However, applicants may enter into bidding agreements before filing their FCC Form 175 shortform applications, as long as they disclose the existence of the agreement(s) in their Form 175 shortform applications. If parties agree in principle on all material terms prior to the shortform filing deadline, those parties must be identified on the shortform application under Sec. 1.2105(c), even if the agreement has not been reduced to writing. If the parties have not agreed in principle by the filing deadline, an applicant would not include the names of those parties on its application, and may not continue negotiations with other applicants for the same geographic license areas. By signing their FCC Form 175 shortform applications, applicants are certifying their compliance with Sec. 1.2105(c). In addition, Sec. 1.65 of the Commission's Rules requires an applicant to maintain the accuracy and completeness of information furnished in its pending application and to notify the Commission within 30 days of any substantial change that may be of decisional significance to that application. Thus, Sec. 1.65 requires an auction applicant to notify the Commission of any violation of the anticollusion rules upon learning of such violation. Bidders are therefore required to make such notification to the Commission immediately upon discovery.
iii. Protection of Public Safety Operations
9. Section 337 (d)(4) of the Budget Act requires that the
Commission establish rules insuring that public safety services
licensees using spectrum reallocated pursuant to subsection (a)(1)
shall not be subject to harmful interference from television broadcast
licensees. The Conference Report pertaining to that section states that
the Commission should ensure that public safety service licensees in
the 746806 MHz band ``continue to operate free of interference from
any new commercial licensees.'' To achieve this end, the Commission
established ``Guard Bands'' in the 746747 MHz, 762764 MHz, 776777
MHz, and 792794 MHz bands. The Commission required that entities
operating in the Guard Bands adhere to the same outofband emission
(``OOBE'') criteria that was adopted for 700 MHz public safety users.
In addition, these entities must coordinate their frequency use with public safety frequency coordinators and also comply
[[Page 83026]]
with the adjacent channel coupled power outofband emission limits. In
addition, operations in the Guard Bands are restricted to entities that do not use a cellular system architecture.
iv. Protection of Television Services
10. Licensees operating on the spectrum associated with Channels 60, 62, 65, and 67 must comply with the cochannel and adjacent channel provisions of Sec. 27.60 of our rules. For example, an entity operating on any portion of the 746747 MHz Guard Band, which is contained in Channel 60, must provide cochannel protection to Channel 60, and adjacent channel protection to Channels 59 and 61.
11. Negotiations with Incumbent Broadcast Licensees. As the Commission noted in the 700 MHz First Report & Order: ``The Congressional plan set forth in sections 336 and 337 of the [Communications] Act and in the 1997 Budget Act is to transition this spectrum from its current use for broadcast services to commercial use and public safety services.'' Congress also has directed the Commission to auction 36 MHz of spectrum, six of which are the subject of this auction, allocated for commercial use at least six years before the relocation deadline for incumbent broadcasters in this spectrum, while adopting interference limits and other technical restrictions necessary to protect fullservice analog and digital television service during the transition to DTV.
12. In the 700 MHz MO&O, the Commission concluded that voluntary band clearing agreements between incumbent broadcast licensees on Channels 5969 and new licensees in the 700 MHz bands, if properly structured, will further the broad public interest in intensive and efficient use of the spectrum and further the statutory scheme. Accordingly, the Commission provided guidance in the 700 MHz MO&O regarding its treatment of specific regulatory requests needed to implement such voluntary agreements. This guidance includes a presumption in favor of approving such regulatory requests in certain circumstances and a recognition of the must carry obligation of cable systems with regard to broadcasts of digital television programming. The Commission established a rebuttable presumption in favor of granting regulatory requests that would: (i) Make new or expanded wireless service, such as ``2.5'' or ``3G'' services available to consumers; (ii) clear commercial frequencies that enable provision of public safety services; or (iii) result in the provision of wireless service to rural or other underserved communities. The applicant would also need to show that grant of the request would not result in any of the following: (i) The loss of any of the four stations in the designated market area (DMA) with the largest audience share; (ii) the loss of the sole service licensed to the local community; or (iii) the loss of a community's sole service on a channel reserved for noncommercial educational broadcast service.
13. With respect to regulatory requests for which the presumption described is not established, or is rebutted, the Commission has stated that it will weigh the loss of broadcast service and the advent of new wireless service on a casebycase basis. In reviewing specific requests not subject to the favorable presumption, the Commission would consider as a relevant factor in its public interest determination the extent to which the station's signal will remain available, after implementation of the agreement, to a significant number of its viewers in the licensee's service area. For instance, the Commission would find it significant if that signal is effectively available to a significant number of current viewers through various existing distribution channels, such as cable and DBS, and implementation of the voluntary agreement would not create additional TV white or gray area. v. Due Diligence
14. The FCC 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.
15. Potential bidders are reminded that there are a number of incumbent broadcast television licensees already licensed and operating in the 746764 and 776794 MHz bands (television Channels 6062 and 65 67), six megahertz of which will be subject to the upcoming auction. As discussed in greater detail, the Commission made clear that geographic area licensees operating on the spectrum associated with Channels 60, 62, 65, and 67 must comply with the cochannel and adjacent channel provision of Sec. 90.545 of the Commission's rules. In addition, geographic area licensees operating fixed stations in the 746764 MHz band must comply with the relevant provisions for ``base stations'' in Secs. 90.309 and 90.545 of the Commission's rules; and licensees operating fixed stations in the 776794 MHz band must comply with the relevant provisions for ``control stations'' in those sections of the rules.
16. These limitations may restrict the ability of such geographic licensees to use certain portions of the electromagnetic spectrum or provide service to certain regions in their geographic license areas. Listed in Attachment I are the facilities of incumbent television permittees and licensees on television Channels 5968. However, prospective bidders should not rely solely on this list, but should carefully review the Commission's databases and records before formulating bidding strategies. Records relating to these stations are available for public inspection during regular business hours in the Reference Information Center at the Federal Communications Commission, 445 Twelfth Street, SW, CYA257, Washington, DC 20554. The Commission makes no representation or guarantees regarding the accuracy or completeness of the information in Attachment I. In addition, the Commission makes no representations or guarantees regarding the accuracy or completeness of information that has been provided by incumbent licensees and incorporated into the databases. Potential bidders are strongly encouraged to physically inspect any sites located in or near the geographic area for which they plan to bid.
17. Potential bidders should also be aware that certain applications (including those for modification), petitions for rulemaking, waiver requests, requests for special temporary authority (``STA''), petitions to deny, petitions for reconsideration, and applications for review may be pending before the Commission that relate to the facilities in Attachment I. We note that resolution of these pending matters could have an impact on the availability of spectrum for licensees in the 746764 and 776794 MHz bands. While the Commission will continue to act on pending matters, some of these matters may not be resolved by the time of auction.
18. Potential bidders are strongly encouraged to conduct their own
research prior to Auction No. 38 in order to determine the existence of
pending proceedings that might affect their decisions regarding participation in the auction. Participants in Auction
[[Page 83027]]
No. 38 are strongly encouraged to continue such research during the auction.
vi. Bidder Alerts
19. All applicants must certify on their FCC Form 175 applications under penalty of perjury that they are legally, technically, financially and otherwise qualified to hold a license, and not in default on any payment for Commission licenses (including down payments) or delinquent on any nontax debt owed to any Federal agency. 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.
20. As is the case with many business investment opportunities, some unscrupulous entrepreneurs may attempt to use Auction No. 38 to deceive and defraud unsuspecting investors.
21. Information about deceptive telemarketing investment schemes is available from the FTC at (202) 3262222 and from the 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) 8767060. Consumers who have concerns about specific 700 MHz proposals may also call the FCC Consumer Center at (888) CALLFCC ((888) 2255322).
vii. National Environmental Policy Act (NEPA) Requirements
22. Licensees must comply with the Commission's rules regarding the
National Environmental Policy Act (NEPA). The construction of a
wireless antenna facility is a federal action and the licensee must
comply with the Commission's NEPA rules for each such facility. The
Commission's NEPA rules require, among other things, that the licensee
consult with expert agencies having NEPA responsibilities, including
the U.S. Fish and Wildlife Service, the State Historic Preservation
Office, the Army Corp of Engineers and the Federal Emergency Management
Agency (through the local authority with jurisdiction over
floodplains). The licensee must prepare environmental assessments for
facilities that may have a significant impact in or on wilderness
areas, wildlife preserves, threatened or endangered species or
designated critical habitats, historical or archaeological sites,
Indian religious sites, floodplains, and surface features. The licensee
must also prepare environmental assessments for facilities that include
high intensity white lights in residential neighborhoods or excessive radio frequency emission.
C. Auction Specifics
i. Auction Date
23. The auction will begin on Tuesday, February 13, 2001. The
initial schedule for bidding will be announced by public notice at
least one week before the start of the auction. Unless otherwise
announced, bidding on all licenses will be conducted on each business day until bidding has stopped on all licenses.
ii. Auction Title
24. Auction No. 38700 MHz Guard Band.
ii. Bidding Methodology
25. The bidding methodology for Auction No. 38 will be simultaneous multiple round bidding. Bidding will be permitted only from remote locations, either electronically (by computer) or telephonically. iii. PreAuction Dates and Deadlines
26. These are important dates relating to Auction No. 38: Auction SeminarJanuary 4, 2001
ShortForm Application (FCC FORM 175)January 12, 2001; 6:00 p.m. ET
Upfront Payments (via wire transfer)January 26, 2001; 6:00 p.m. ET
Orders for Remote Bidding SoftwareJanuary 29, 2001; 6:00 p.m. ET Mock AuctionFebruary 9, 2001
Auction BeginsFebruary 13, 2001
iv. Requirements for Participation
27. Those wishing to participate in the auction must:
28. The following is a list of general contract information relating to Auction No. 38:
General Auction Information: General Auction Questions; Seminar Registration; Orders for Remote Bidding SoftwareFCC Auctions Hotline, (888) 2255322, Press Option #2, or direct (717) 3382888, Hours of service: 8 a.m.6:00 p.m. ET.
Auction Legal Information: Auction Rules, Policies, Regulations Auctions and Industry Analysis Division, Legal Branch (202) 4180660.
Licensing Information: Rules, Policies, Regulations; Licensing Issues; Incumbency/Protection IssuesCommercial Wireless Division, (202) 4180620.
Technical Support: Electronic Filing Assistance; Software DownloadingFCC Auctions Technical Support Hotline, (202) 4141250 (Voice), (202) 4141255 (TTY). Hours of service: 7 a.m.10:00 p.m. ET, MondayFriday; 8 a.m.7:00 p.m. ET, Saturday; 12:00 p.m.6:00 p.m. ET, Sunday.
Payment Information: Wire Transfers, RefundsFCC Auctions Accounting Branch, (202) 4181995, (202) 4182843 (Fax).
Telephonic Bidding: Will be furnished only to qualified bidders.
FCC Copy Contractor: Additional Copies of Commission Documents
International Transcription Services, Inc., 445 12th Street, SW Room CYB400, Washington, DC 20554, (202) 3143070.
Press Information: Mark Rubin (202) 4182924.
FCC Forms: (800) 4183676 (outside Washington, DC), (202) 4183676 (in the Washington Area), http://www.fcc.gov/formpage.
FCC Internet Sites: http:// www.fcc.gov, ftp://www.fcc.gov. I. ShortForm (FCC Form 175) Application Requirements
29. Guidelines for completion of the shortform (FCC Form 175) are
set forth in Attachment D to the public notice. The shortform application seeks the applicant's name and address, legal
classification, status, bidding credit eligibility, identification of
the authorization(s) sought, the authorized bidders and contact persons, and specific ownership information.
A. Ownership Disclosure Requirements (Form 175 Exhibit A)
30. All applicants must comply with the uniform part 1 ownership
disclosure standards and provide information required by Secs. 1.2105
and 1.2112 of the Commission's rules. Specifically, in completing Form
175, applicants will be required to file an Exhibit A providing a full
and complete statement of the ownership of the bidding entity. The
ownership disclosure standards for the shortform are set forth in Sec. 1.2112 of the Commission's rules.
B. Consortia and Joint Bidding Arrangements (Form 175 Exhibit B)
31. Applicants will be required to identify on their shortform applications
[[Page 83028]]
any parties with whom they have entered into any consortium
arrangements, joint ventures, partnerships or other agreements or
understandings which relate in any way to the licenses being auctioned,
including any agreements relating to postauction market structure. See
47 CFR 1.2105(a)(2)(viii); and 1.2105(c)(1). Applicants will also be
required to certify on their shortform applications that they have not
entered into any explicit or implicit agreements, arrangements or
understandings of any kind with any parties, other than those
identified, regarding the amount of their bids, bidding strategies, or
the particular licenses on which they will or will not bid. See 47 CFR
1.2105(a)(2)(ix). As discussed, if an applicant has had discussions,
but has not reached a joint bidding agreement by the shortform
deadline, it would not include the names of parties to the discussions
on its application and may not continue discussions with applicants for
the same geographic license area(s) after the deadline. In cases where
applicants have entered into consortia or joint bidding arrangements, applicants must submit an Exhibit B to the FCC Form 175.
32. A party holding a noncontrolling, attributable interest in one applicant will be permitted to acquire an ownership interest in, form a consortium with, or enter into a joint bidding arrangement with other applicants for licenses in the same geographic license area provided that (i) the attributable interest holder certifies that it has not and will not communicate with any party concerning the bids or bidding strategies of more than one of the applicants in which it holds an attributable interest, or with which it has formed a consortium or entered into a joint bidding arrangement; and (ii) the arrangements do not result in a change in control of any of the applicants. While the anticollusion rules do not prohibit nonauction related business negotiations among auction applicants, bidders are reminded that certain discussions or exchanges could touch upon impermissible subject matters because they may convey pricing information and bidding strategies.
C. Small Business Bidding Credits (Form 175 Exhibit C)
33. In the 700 MHz Second Report & Order, the Commission adopted small business provisions to promote and facilitate the participation of small businesses in competitive bidding for Guard Band licenses in the 700 MHz band.
i. Eligibility
34. Bidding credits are available to small businesses and very
small businesses as defined in 47 CFR 27.502(a). For purposes of
determining which entities qualify as very small businesses or small
businesses, the Commission will consider the gross revenues of the
applicant, its controlling interest holders, and affiliates of the
applicant and its controlling interest holders. The Commission does not
impose specific equity requirements on controlling interest holders.
Once principals or entities with a controlling interest are determined,
only the revenues of those principals or entities, the applicant and
its affiliates will be counted in determining small business
eligibility. The term ``control'' includes both de facto and de jure
control of the applicant. Typically, ownership of at least 50.1 percent
of an entity's voting stock evidences de jure control. De facto control
is determined on a casebycase basis. The following are some common indicia of control:
35. A consortium of small businesses, or very small businesses is a ``conglomerate organization formed as a joint venture between or among mutually independent business firms'', each of which individually must satisfy the definition of small or very small business in Sec. 27.502. Thus, each consortium member must disclose its gross revenues along with those of its affiliates, controlling interests, and controlling interests' affiliates. We note that although the gross revenues of the consortium members will not be aggregated for purposes of determining eligibility for small or very small business credits, this information must be provided to ensure that each individual consortium member qualifies for any bidding credit awarded to the consortium. ii. Application Showing
36. Applicants must file supporting documentation as Exhibit C to their FCC Form 175 short form applications to establish that they satisfy the eligibility requirements to qualify as a small business or very small business (or consortia of small or very small businesses) for this auction. Specifically, for Auction No. 38, applicants applying to bid as small or very small businesses (or consortia of small or very small businesses) will be required to disclose on Exhibit C to their FCC Form 175 shortform applications, separately and in the aggregate, the gross revenues for the preceding three years of each of the following: (i) The applicant; (ii) the applicant's affiliates; (iii) the applicant's controlling interest holders; and (iv) the affiliates of the applicant's controlling interest holders. Certification that the average gross revenues for the preceding three years do not exceed the applicable limit is not sufficient. A statement of the total gross revenues for the preceding three years is also insufficient. The applicant must provide separately for itself, its affiliates, and its controlling interest holders, and their affiliates, a schedule of gross revenues for each of the preceding three years, as well as a statement of total average gross revenues for the threeyear period. If the applicant is applying as a consortium of very small or small businesses, this information must be provided for each consortium member.
iii. Bidding Credits
37. Applicants that qualify under the definitions of small business and very small business (or consortia of small or very small businesses) as are set forth in 47 CFR 27.502, are eligible for a bidding credit that represents the amount by which a bidder's winning bids are discounted. The size of a bidding credit in the 700 MHz guard band auction depends on the average gross revenues for the preceding three years of the bidder and its controlling interests and affiliates:
38. Bidding credits are not cumulative; qualifying applicants
receive either the 15 percent or the 25 percent bidding credit, but not
both. Bidders in Auction No. 38 should also note that unjust enrichment
provisions apply to winning bidders that use bidding credits and
subsequently assign or transfer control of their licenses to an entity
not qualifying for the same level of bidding credit. Finally, bidders should also note that there are no
[[Page 83029]]
installment payment plans in Auction No. 38.
iv. Tribal Land Bidding Credit
39. To encourage the growth of wireless services in federally
recognized tribal lands the Commission has implemented a tribal land bidding credit. See Part V.C.
D. Provisions Regarding Defaulters and Former Defaulters (FCC Form 175 Exhibit D)
40. Each applicant must certify on its FCC Form 175 application that it is not in default on any Commission licenses and that it is not delinquent on any nontax debt owed to any Federal agency. In addition, each applicant must attach to its FCC Form 175 application a statement made under penalty of perjury indicating whether or not the applicant (or any of the applicant's controlling interest or their affiliates, as defined by Sec. 1.2110 of the Commission's rules, as recently amended in the Part 1 Fifth Report and Order) has ever been in default on any Commission licenses or has ever been delinquent on any nontax debt owed to any federal agency. Applicants must include this statement as Exhibit D of the FCC Form 175. Prospective bidders are reminded that the statement must be made under penalty of perjury and, further, 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.
41. ``Former defaulters''i.e., applicants, including their attributable interest holders, that in the past have defaulted on any Commission licenses or been delinquent on any nontax debt owed to any Federal agency, but that have since remedied all such defaults and cured all of their outstanding nontax delinquenciesare eligible to bid in Auction No. 38, provided that they are otherwise qualified. However, as discussed infra in section III.D.3, former defaulters are required to pay upfront payments that are fifty percent more than the normal upfront payment amounts.
E. Other Information (Form 175 Exhibits E and F)
42. Applicants owned by minorities or women, as defined in 47 CFR
1.2110(b)(2), may attach an exhibit (Exhibit E) regarding this status.
This applicant status information is collected for statistical purposes
only and assists the Commission in monitoring the participation of
``designated entities'' in its auctions. Applicants wishing to submit
additional information may do so in Exhibit F, Miscellaneous Information to the FCC Form 175.
F. Minor Modifications to ShortForm Applications (FCC Form 175)
43. After the shortform filing deadline (January 12, 2001), applicants may make only minor changes to their FCC Form 175 applications. Applicants will not be permitted to make major modifications to their applications (e.g., change their license selections, change the certifying official or change control of the applicant or change bidding credits). See 47 CFR 1.2105. Permissible minor changes include, for example, deletion and addition of authorized bidders (to a maximum of three) and revision of exhibits. Applicants should make these changes online, and submit a letter to Louis Sigalos, Deputy Chief, Auctions and Industry Analysis Division, Wireless Telecommunications Bureau, Federal Communications Commission, 445 12th Street, SW, Suite 4A668, Washington, DC 20554, briefly summarizing the changes. A separate copy of the letter should be submitted to Howard Davenport, Auctions and Industry Analysis Division, Wireless Telecommunications Bureau, Federal Communications Commission, 445 12th Street, SW, Room 4A435, Washington, DC 20554. Questions about other changes should be directed to Howard Davenport at (202) 4180660. G. Maintaining Current Information in ShortForm Applications (FCC Form 175)
44. Applicants have an obligation under 47 CFR 1.65, to maintain
the completeness and accuracy of information in their shortform
applications. Amendments reporting substantial changes of possible
decisional significance in information contained in FCC Form 175
applications, as defined by 47 CFR 1.2105(b)(2), will not be accepted
and may in some instances result in the dismissal of the FCC Form 175 application.
III. PreAuction Procedures
A. Auction Seminar
45. On Thursday, January 4, 2001, the FCC will sponsor a free seminar for Auction No. 38 at the Federal Communications Commission, located at 445 12th Street, Room CYB511/418, SW, Washington, D.C. The seminar will provide attendees with information about preauction procedures, conduct of the auction, FCC remote bidding software, and the 700 MHz Guard Band service and auction rules. The seminar will also provide an opportunity for prospective bidders to ask questions of FCC staff.
46. To register, complete the registration form included as
Attachment B of this public notice and submit it by 6 p.m. ET, Tuesday,
January 2, 2001. Registrations are accepted on a firstcome, first served basis.
B. ShortForm Application (FCC Form 175)Due January 12, 2001
47. In order to be eligible to bid in this auction, applicants must first submit an FCC Form 175 application. This application must be submitted electronically and received at the Commission no later than 6:00 p.m. ET on January 12, 2001. Late applications will not be accepted.
48. There is no application fee required when filing an FCC Form 175. However, to be eligible to bid, an applicant must submit an upfront payment. See Part III.D.
i. Electronic Filing
49. Applicants must file their FCC Form 175 applications electronically. Applications may generally be filed at any time from 12 noon ET on January 4, 2001 until 6 p.m. ET on January 12, 2001. Applicants are strongly encouraged to file early, and applicants are responsible for allowing adequate time for filing their applications. Applicants may update or amend their electronic applications multiple times until the filing deadline on January 12, 2001.
50. Information about accessing the FCC Form 175 is included in Attachment C. Technical support is available at (202) 4141250 (voice) or (202) 4141255 (text telephone (TTY)); the hours of service are 7 a.m. to 10 p.m. ET, Monday through Friday, 8 a.m. to 7 p.m. ET, Saturday, and 12 p.m. to 6 p.m. ET, Sunday.
ii. Completion of the FCC Form 175
51. Applicants should carefully review 47 CFR 1.2105, and must
complete all items on the FCC Form 175. Instructions for completing the
FCC Form 175 are in Attachment D of this public notice. Applicants are
encouraged to begin preparing the required attachments for FCC Form 175
prior to submitting the form. Attachments C and D to this public notice
provide information on the required attachments and appropriate formats.
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iii. Electronic Review of FCC Form 175
52. The FCC Form 175 electronic review system may be used to review and print applicants' FCC Form 175 information. Applicants may also view other applicants' completed FCC Form 175s after the filing deadline has passed and the FCC has issued a public notice explaining the status of the applications. For this reason, it is important that applicants do not include their Taxpayer Identification Numbers (TINs) on any Exhibits to their FCC Form 175 applications. There is no fee for accessing this system. See Attachment C for details on accessing the review system.
C. Application Processing and Minor Corrections
53. After the deadline for filing the FCC Form 175 applications has passed, the FCC will process all timely submitted applications to determine which are acceptable for filing, and subsequently will issue a public notice identifying: (i) Those applications accepted for filing (including FCC account numbers and the licenses for which they applied); (ii) those applications rejected; and (iii) those applications that have minor defects that may be corrected, and the deadline for filing such corrected applications.
54. As described more fully in the Commission's rules, after the January 12, 2001, 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., change their license selections, change the certifying official, change control of the applicant, or change bidding credit eligibility). D. Upfront PaymentsDue January 26, 2001
55. In order to be eligible to bid in the auction, applicants must submit an upfront payment accompanied by an FCC Remittance Advice Form (FCC Form 159). After completing the FCC Form 175, filers will have access to an electronic version of the FCC Form 159 that can be printed and faxed to Mellon Bank in Pittsburgh, PA. All upfront payments must be received at Mellon Bank by 6 p.m. ET on January 26, 2001.
Please note that:
i. Making Auction Payments by Wire Transfer
56. Wire transfer payments must be received at Mellon Bank by 6
p.m. ET on January 26, 2001. 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
FOR FURTHER INFORMATION CONTACT
Legal questions contact Howard Davenport, Auctions Attorney, at (202) 4180660. For general auction and bidding questions, contact Linda Sanderson, Auctions Project Manager, at (717) 3382888 or Craig Bomberger, Auctions Analyst, at (202) 4180660. Media Contact, Mark Rubin at (202) 4182924. For licensing questions, contact Roger Noel, Chief, Licensing & Technical Analysis Branch, at (202) 4180620.