Multichannel Video Distribution and Data Service Comment Public Notice, 36169-36174 [05-12319]
Download as PDF
Federal Register / Vol. 70, No. 119 / Wednesday, June 22, 2005 / Notices
constitute proposed new information
collections under the PRA, the
Commission specifically invited the
general public and OMB to comment on
the proposed requirements.
The information collection
requirements include: (1) Those that are
contained in the 2005 Report and Order,
noted above. Specifically, Commission
is requesting OMB approval for specific
rules under 47 CFR 64.4002 Notification
obligations of LECs and 47 CFR 64.4003
Notification obligation of IXCs. (The
Commission notes that it previously
published these requirements as
proposed in its 2004 Notice of Proposed
Rulemaking, which was released on
March 25, 2004.) The information
collection requirements for the 2004
Notice of Proposed Rulemaking were
published on April 19, 2004, 69 FR
20845; and (2) those that the
Commission proposes in the 2005
Further Notice of Proposed Rulemaking,
published on June 2, 2005, 70 FR 31406.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. 05–12230 Filed 6–21–05; 8:45 am]
BILLING CODE 6712–01–P
FEDERAL COMMUNICATIONS
COMMISSION
[Report No. AUC–05–60–B; DA 05–737]
Auction of Lower 700 MHz Band
Licenses Scheduled for July 20, 2005;
Notice and Filing Requirements,
Minimum Opening Bids, Upfront
Payments and Other Auction
Procedures
Federal Communications
Commission.
ACTION: Notice; correction.
AGENCY:
SUMMARY: The Federal Communications
Commission published a document in
the Federal Register of May 12, 2005,
concerning the Auction of Low Power
Television Construction Permits and the
Procedures. The document contained
incorrect data concerning the
calculation formula for minimum
opening bids for Auction No. 60.
FOR FURTHER INFORMATION CONTACT:
Auctions and Spectrum Access
Division, Wireless Telecommunications
Bureau: Howard Davenport at (202)
418–0660.
Correction
In the Federal Register of May 12,
2005, in FR Doc. 05–9537 on page
25056, in the second column, paragraph
104, correct the text to read as follows:
VerDate jul<14>2003
21:12 Jun 21, 2005
Jkt 205001
In the Auction No. 60 Comment
Public Notice, the Bureau proposed to
establish minimum opening bids for
Auction No. 60 and to retain discretion
to lower the minimum opening bids.
Specifically, for Auction No. 60, the
Bureau proposed the following licenseby-license basis using a formula based
on bandwidth and license area
population:
$0.01 * MHz * License Area
Population with a minimum of $1,000
per license.
Federal Communications Commission.
Gary D. Michaels,
Deputy Chief, Auction Spectrum and Access
Division, WTB.
[FR Doc. 05–12320 Filed 6–21–05; 8:45 am]
36169
contractor, Best Copy and Printing, Inc.
(BCPI) (1–800–378–3160). Oppositions
to these petitions must be filed by July
7, 2005. See Section 1.4(b)(1) of the
Commission’s rules (47 CFR 1.4(b)(1)).
Replies to an opposition must be filed
within 10 days after the time for filing
oppositions have expired.
Subject: In the Matter of Amendment
of Section 73.202(b) Table of
Allotments, FM Broadcast Stations
(Chillicothe, Dublin, Hillsboro, and
Marion, Ohio) (MB Docket No. 02–266).
Number of Petitions Filed: 1.
Marlene H. Dortch,
Secretary.
[FR Doc. 05–11911 Filed 6–21–05; 8:45 am]
BILLING CODE 6712–01–P
BILLING CODE 6712–01–P
FEDERAL COMMUNICATIONS
COMMISSION
FEDERAL COMMUNICATIONS
COMMISSION
[Report No. 2716]
Network Reliability and Interoperability
Council
Federal Communications
Commission.
ACTION: Notice of cancellation of public
meeting.
AGENCY:
SUMMARY: In accordance with the
Federal Advisory Committee Act, 5
U.S.C. App. 2, Public Law 92–463, as
amended, this notice advises interested
persons that the meeting of he Network
Reliability and Interoperability Council
scheduled for June 28, 2005 has been
cancelled.
FOR FURTHER INFORMATION CONTACT:
Jeffery Goldthorp at (202) 418–1096,
TTY (202) 418–2989, or e-mail JefferyGoldthorp@fcc.gov.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. 05–12321 Filed 6–21–05; 8:45 am]
BILLING CODE 6712–01–P
FEDERAL COMMUNICATIONS
COMMISSION
[Report No. 2715 ]
Petitions for Reconsideration of Action
in Rulemaking Proceeding
June 8, 2005.
Petitions for Reconsideration have
been filed in the Commission’s
Rulemaking proceeding listed in this
Public Notice and published pursuant to
47 CFR 1.429(e). The full text of this
document is available for viewing and
copying in Room CY–B402, 445 12th
Street, SW., Washington, DC or may be
purchased from the Commission’s copy
contractor, Best Copy and Printing, Inc.
(BCPI) (1–800–378–3160). Oppositions
to these petitions must be filed by July
7, 2005. See section 1.4(b)(1) of the
Commission’s rules (47 CFR 1.4(b)(1)).
Replies to an opposition must be filed
within 10 days after the time for filing
oppositions have expired.
Subject: In the Matter of Request of
State Farm Mutual Automobile
Insurance Company for Clarification &
Declaratory Ruling (CG Docket No. 02–
278).
Number of Petitions Filed: 1.
Marlene H. Dortch,
Secretary.
[FR Doc. 05–11912 Filed 6–21–05; 8:45 am]
Petitions for Reconsideration of Action
in Rulemaking Proceeding
BILLING CODE 6712–01–P
June 8, 2005.
FEDERAL COMMUNICATIONS
COMMISSION
Petitions for Reconsideration have
been filed in the Commission’s
Rulemaking proceeding listed in this
Public Notice and published pursuant to
47 CFR 1.429(e). The full text of this
document is available for viewing and
copying in Room CY–B402, 445 12th
Street, SW., Washington, DC or may be
purchased from the Commission’s copy
PO 00000
Frm 00061
Fmt 4703
Sfmt 4703
[Report No. AUC–05–63–A (Auction No. 63);
DA 05–1555]
Multichannel Video Distribution and
Data Service Comment Public Notice
Federal Communications
Commission.
AGENCY:
E:\FR\FM\22JNN1.SGM
22JNN1
36170
ACTION:
Federal Register / Vol. 70, No. 119 / Wednesday, June 22, 2005 / Notices
Notice.
SUMMARY: This document announces the
auction of 22 Multichannel Video
Distribution and Data Service
(‘‘MVDDS’’) licenses scheduled to
commence on December 7, 2005
(Auction No. 63). This document also
seeks comment on reserve prices or
minimum opening bids and other
procedures for Auction No. 63.
DATES: Comments are due on or before
June 28, 2005, and reply comments are
due on or before July 6, 2005.
ADDRESSES: Parties who file by paper
must file an original and four copies of
each filing. U.S. Postal Service first
class, express and priority mail must be
addressed to the Office of the Secretary,
445 12th Street, SW., Washington, DC
20554. Comments and reply comments
must also be sent by electronic mail to
the following address:
auction63@fcc.gov.
FOR FURTHER INFORMATION CONTACT: For
legal questions: Brian Carter at (202)
418–0660. For general auction
questions: Roy Knowles, Debbie Smith
or Barbara Sibert at (717) 338–2888. For
service rules questions: Mindy Littell
(legal) or Michael Pollack (technical) at
(202) 418–2487.
SUPPLEMENTARY INFORMATION: This is a
summary of the Commission’s Public
Notice released on June 9, 2005 Auction
No. 63 Comment Public Notice. The
complete text of the Auction No. 63
Comment Public Notice, including
attachments and any related
Commission documents is available for
public inspection and copying during
regular business hours at the FCC
Reference Information Center, Portals II,
445 12th Street, SW., Room CY–A257,
Washington, DC 20554. The Auction No.
63 Comment Public Notice and related
Commission documents may also be
purchased from the Commission’s
duplicating contractor, Best Copy and
Printing, Inc. (BCPI), Portals II, 445 12th
Street, SW., Room CY–B402,
Washington, DC, 20554, telephone 202–
488–5300, facsimile 202–488–5563, or
you may contact BCPI at its Web site:
https://www.BCPIWEB.com. When
ordering documents from BCPI, please
make sure you provide the appropriate
FCC document number (for example,
DA05–1555 for the Auction No. 63
Comment Public Notice). The Auction
No. 63 Comment Public Notice and
related documents are also available on
the Internet at the Commission’s Web
site: https://wireless.fcc.gov/auctions/63/
.
1. The Wireless Telecommunications
Bureau (Bureau) announces the auction
of 22 MVDDS licenses. This auction is
scheduled to commence on December 7,
2005. Auction No. 63 will offer the
MVDDS licenses that remained unsold
in Auction No. 53, which closed on
January 27, 2004. These licenses
authorize the use of one block of
unpaired spectrum in the 12.2–12.7 GHz
band and may be used for any digital
fixed one-way non-broadcast service,
including direct-to-home/office wireless
service. Mobile and aeronautical
services are not authorized. Two-way
services may be provided by using other
spectrum or media for the return or
upstream path. Licenses are not
available in every market. A complete
list of the licenses available in Auction
No. 63 is included as Attachment A of
the Auction No. 63 Comment Public
Notice.
2. Auction No. 63 will use the FCC’s
Integrated Spectrum Auction System
(ISAS or FCC Auction System), which is
the Commission’s new auction
application filing and bidding system
and is an extensive redesign of the
previous auction application and
bidding systems. The redesign includes
FCC Form 175 application
enhancements such as discrete data
elements in place of free-form exhibits
and improved data accuracy through
automated checking of FCC Form 175
applications. Enhancements have also
been made to the FCC Form 175
application search function. The auction
bidding system has also been updated
for easier navigation, customizable
results, and improved functionality.
3. The following table describes the
licenses that will be offered in Auction
No. 63:
Frequency band
(GHz)
Total Bandwith
Pairing
Geographic area type
12.2–12.7 ...............................
500 MHz ................................
Unpaired ................................
MVDDS Service Area ............
4. Section 309(j)(3) of the
Communications Act of 1934, as
amended, requires the Commission to
‘‘ensure that, in the scheduling of any
competitive bidding under this
subsection, an adequate period is
allowed * * * before issuance of
bidding rules, to permit notice and
comment on proposed auction
procedures * * *.’’ Consistent with the
provisions of Section 309(j)(3) and to
ensure that potential bidders have
adequate time to familiarize themselves
with the specific rules that will govern
the day-to-day conduct of an auction,
the Commission directed the Bureau,
under its existing delegated authority, to
seek comment on a variety of auctionspecific procedures prior to the start of
each auction. The Bureau therefore
seeks comment on the following issues
relating to Auction No. 63.
VerDate jul<14>2003
21:12 Jun 21, 2005
Jkt 205001
I. Auction Structure
A. Simultaneous Multiple-Round
Auction Design
5. The Bureau proposes to award all
licenses included in Auction No. 63 in
a simultaneous multiple-round auction.
This methodology offers every license
for bid at the same time with successive
bidding rounds in which bidders may
place bids on individual licenses. The
Bureau seeks comment on this proposal.
B. Upfront Payments and Bidding
Eligibility
6. The Bureau has delegated authority
and discretion to determine an
appropriate upfront payment for each
license being auctioned, taking into
account such factors as the population
in each geographic license area and the
value of similar spectrum. The upfront
payment is a refundable deposit made
by each bidder to establish eligibility to
bid on licenses. Upfront payments
PO 00000
Frm 00062
Fmt 4703
Sfmt 4703
Number of
Licenses
22
related to the specific spectrum subject
to auction protect against frivolous or
insincere bidding and provide the
Commission with a source of funds from
which to collect payments owed at the
close of the auction. With these
guidelines in mind for Auction No. 63,
the Bureau proposes to calculate upfront
payments on a license-by-license basis
as follows:
7. The upfront payment for each
license in Auction No. 63 is based on 50
percent of the corresponding minimum
opening bid amount from Auction No.
53, with a minimum of $1,000 per
license. The specific proposed upfront
payment for each license available in
Auction No. 63 is set forth in
Attachment A of the Auction No. 63
Comment Public Notice. The Bureau
seeks comment on this proposal.
8. The Bureau further proposes that
the amount of the upfront payment
submitted by a bidder will determine
E:\FR\FM\22JNN1.SGM
22JNN1
Federal Register / Vol. 70, No. 119 / Wednesday, June 22, 2005 / Notices
the maximum number of bidding units
on which a bidder may place bids. This
limit is a bidder’s initial bidding
eligibility. Each license is assigned a
specific number of bidding units equal
to the upfront payment listed in
Attachment A of the Auction No. 63
Comment Public Notice, on a bidding
unit per dollar basis. Bidding units for
a given license do not change as prices
rise during the auction. A bidder’s
upfront payment is not attributed to
specific licenses. Rather, a bidder may
place bids on any combination of
licenses it selected on its FCC Form 175
as long as the total number of bidding
units associated with those licenses
does not exceed the bidder’s current
eligibility. Eligibility cannot be
increased during the auction; it can only
remain the same or decrease. Thus, in
calculating its upfront payment amount,
an applicant must determine the
maximum number of bidding units
upon which it may wish to be active
(bid on or hold provisionally winning
bids on) in any single round, and submit
an upfront payment amount covering
that total number of bidding units.
Provisionally winning bids at the end of
the auction become the winning bids.
The Bureau seeks comment on this
proposal.
C. Activity Rules
9. 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 wait until late in the auction
before participating. Bidders are
required to be active on a specific
percentage of their current bidding
eligibility during each round of the
auction. A bidder that does not satisfy
the activity rule either will lose bidding
eligibility or use an activity rule waiver.
10. The Bureau proposes to divide the
auction into two stages, each
characterized by a different activity
requirement. The auction will start in
Stage One. The Bureau proposes that the
auction generally will advance from
Stage One to Stage Two when the
auction activity level, as measured by
the percentage of bidding units
receiving new provisionally winning
bids, is approximately twenty percent or
below for three consecutive rounds of
bidding. However, the Bureau further
proposes that the Bureau retain the
discretion to change stages unilaterally
by announcement during the auction. In
exercising this discretion, the Bureau
will consider a variety of measures of
bidder activity, including, but not
limited to, the auction activity level, the
percentage of licenses (as measured in
bidding units) on which there are new
VerDate jul<14>2003
21:12 Jun 21, 2005
Jkt 205001
bids, the number of new bids, and the
percentage increase in revenue. The
Bureau seeks comment on these
proposals.
11. For Auction No. 63, the Bureau
proposes the following activity
requirements:
Stage One: In each round of the first
stage of the auction, a bidder desiring to
maintain its current bidding eligibility
is required to be active on licenses
representing at least 80 percent of its
current bidding eligibility. Failure to
maintain the requisite activity level will
result in a reduction in the bidder’s
bidding eligibility for the next round of
bidding unless an activity rule waiver is
used. During Stage One, a bidder’s
reduced eligibility for the next round
will be calculated by multiplying the
bidder’s current round activity by fivefourths (5⁄4).
Stage Two: In each round of the
second stage, a bidder desiring to
maintain its current bidding eligibility
is required to be active on 95 percent of
its current bidding eligibility. During
Stage Two, a bidder’s reduced eligibility
for the next round will be calculated by
multiplying the bidder’s current round
activity by twenty-nineteenths (20⁄19).
12. The Bureau seeks comment on
these proposals. Commenters that
believe these activity rules should be
modified should explain their reasoning
and comment on the desirability of an
alternative approach. Commenters are
advised to support their claims with
analyses and suggested alternative
activity rules.
D. Activity Rule Waivers and Reducing
Eligibility
13. 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. Activity rule waivers can be
either proactive or automatic and are
principally a mechanism for auction
participants to avoid the loss of bidding
eligibility in the event that exigent
circumstances prevent them from
placing a bid in a particular round.
14. The FCC Auction System assumes
that bidders with insufficient activity
would prefer to apply an activity rule
waiver (if available) rather than lose
bidding eligibility. Therefore, the
system will automatically apply a
waiver at the end of any bidding round
where a bidder’s activity level is below
the minimum required unless: (1) The
bidder has no activity rule waivers
available; or (2) the bidder overrides the
automatic application of a waiver by
PO 00000
Frm 00063
Fmt 4703
Sfmt 4703
36171
reducing eligibility, thereby meeting the
minimum requirement. Note: If a bidder
has no waivers remaining and does not
satisfy the required activity level, its
eligibility will be permanently reduced,
possibly eliminating the bidder from
further bidding in the auction. A bidder
with insufficient activity may wish to
reduce its bidding eligibility rather than
use an activity rule waiver. If so, the
bidder must affirmatively override the
automatic waiver mechanism during the
bidding round by using the ‘‘reduce
eligibility’’ function in the FCC Auction
System. In this case, the bidder’s
eligibility is permanently reduced to
bring the bidder into compliance with
the activity rules as described above.
Once eligibility has been reduced, a
bidder will not be permitted to regain its
lost bidding eligibility.
15. A bidder may apply an activity
rule waiver proactively as a means to
keep the auction open without placing
a bid. If a bidder proactively applies an
activity rule waiver (using the ‘‘apply
waiver’’ function in the FCC Auction
System) during a bidding round in
which no bids or withdrawals are
submitted, the auction will remain open
and the bidder’s eligibility will be
preserved. An automatic waiver applied
by the FCC Auction System in a round
in which there are no new bids or
withdrawals will not keep the auction
open. Note: Applying a waiver is
irreversible; once a proactive waiver is
submitted that waiver cannot be
unsubmitted, even if the round has not
yet closed.
16. The Bureau proposes that each
bidder in Auction No. 63 be provided
with three activity rule waivers that may
be used at the bidder’s discretion during
the course of the auction as set forth
above. The Bureau seeks comment on
this proposal.
E. Information Relating to Auction
Delay, Suspension, or Cancellation
17. For Auction No. 63, the Bureau
proposes that, by public notice or by
announcement during the auction, the
Bureau 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 efficient
conduct of competitive bidding. In such
cases, the Bureau, 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 Bureau to delay or suspend
the auction. The Bureau emphasizes
E:\FR\FM\22JNN1.SGM
22JNN1
36172
Federal Register / Vol. 70, No. 119 / Wednesday, June 22, 2005 / Notices
that exercise of this authority is solely
within the discretion of the Bureau, and
its use is not intended to be a substitute
for situations in which bidders may
wish to apply their activity rule waivers.
The Bureau seeks comment on this
proposal.
II. Bidding Procedures
A. Round Structure
18. The Commission will conduct
Auction No. 63 over the Internet.
Telephonic bidding will also be
available. The toll free telephone
number through which telephonic
bidding may be accessed will be
provided to bidders.
19. The initial bidding schedule will
be announced in a public notice to be
released at least one week before the
start of the auction. The simultaneous
multiple-round format will consist of
sequential bidding rounds, each
followed by the release of round results.
Details regarding the location and
format of round results will be included
in the same public notice.
20. The Bureau 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 Bureau may
increase or decrease the amount of time
for the bidding rounds and review
periods, or the number of rounds per
day, depending upon the bidding
activity level and other factors. The
Bureau seeks comment on this proposal.
B. Reserve Price or Minimum Opening
Bid
21. Section 309(j) calls upon the
Commission to prescribe methods for
establishing a reasonable reserve price
or a minimum opening bid amount
when FCC licenses are subject to
auction, unless the Commission
determines that a reserve price or
minimum opening bid amount is not in
the public interest. Consistent with this
mandate, the Commission has directed
the Bureau to seek comment on the use
of a minimum opening bid amount and/
or reserve price prior to the start of each
auction.
22. Normally, a reserve price is an
absolute minimum price below which
an item will not be sold in a given
auction. Reserve prices can be either
published or unpublished. A minimum
opening bid amount, on the other hand,
is the minimum bid price set at the
beginning of the auction below which
no bids are accepted. It is generally used
to accelerate the competitive bidding
process. Also, the auctioneer often has
the discretion to lower the minimum
VerDate jul<14>2003
21:12 Jun 21, 2005
Jkt 205001
opening bid amount later in the auction.
It is also possible for the minimum
opening bid amount and the reserve
price to be the same amount.
23. In light of Section 309(j)’s
requirements, the Bureau proposes to
establish minimum opening bid
amounts for Auction No. 63. The Bureau
believes a minimum opening bid
amount, which has been used in other
auctions, is an effective bidding tool.
24. Specifically, for Auction No. 63,
the Bureau proposes to calculate
minimum opening bids on a license-bylicense basis as follows:
The minimum opening bid amount
for each license in Auction No. 63 is
based on a 50 percent reduction of the
corresponding minimum opening bid
amount from Auction No. 53, with a
minimum of $1,000 per license.
25. The specific minimum opening
bid amount for each license available in
Auction No. 63 is set forth in
Attachment A of the Auction No. 63
Comment Public Notice. The Bureau
seeks comment on this proposal.
26. If commenters believe that these
minimum opening bid amounts will
result in substantial numbers of unsold
licenses, or are not reasonable amounts,
or should instead operate as reserve
prices, they should explain why this is
so, and comment on the desirability of
an alternative approach. Commenters
are advised to support their claims with
valuation analyses and suggested
reserve prices or minimum opening bid
amount levels or formulas. In
establishing the minimum opening bid
amounts, the Bureau particularly seeks
comment on such factors as the amount
of spectrum being auctioned, levels of
incumbency, the availability of
technology to provide service, the size
of the geographic service areas, issues of
interference with other spectrum bands
and any other relevant factors that could
reasonably have an impact on valuation
of the MVDDS spectrum. The Bureau
also seeks comment on whether,
consistent with Section 309(j), the
public interest would be served by
having no minimum opening bid
amount or reserve price.
C. Minimum Acceptable Bid Amounts
and Bid Increments
27. In each round, eligible bidders
will be able to place bids on a given
license in any of nine different amounts.
The FCC Auction System will list the
nine acceptable bid amounts for each
license.
28. The minimum acceptable bid
amount for a license will be equal to its
minimum opening bid amount until
there is a provisionally winning bid for
the license. After there is a provisionally
PO 00000
Frm 00064
Fmt 4703
Sfmt 4703
winning bid for a license, the minimum
acceptable bid amount for that license
will be equal to the amount of the
provisionally winning bid plus an
additional amount. The minimum
acceptable bid amount will be
calculated by multiplying the
provisionally winning bid amount times
one plus the minimum acceptable bid
percentage—e.g., if the minimum
acceptable bid percentage is 5 percent,
the minimum acceptable bid amount
will equal (provisionally winning bid
amount) * (1.05), rounded. The Bureau
will round the result using its standard
rounding procedures.
29. The nine acceptable bid amounts
for each license consist of the minimum
acceptable bid amount and additional
amounts calculated using the minimum
acceptable bid amount and the bid
increment percentage. The Bureau will
round the results using our standard
rounding procedures. The first
additional acceptable bid amount equals
the minimum acceptable bid amount
times the sum of one plus the bid
increment percentage, rounded—e.g., if
the bid increment percentage is 5
percent, the calculation is (minimum
acceptable bid amount) * (1 + 0.05),
rounded, or (minimum acceptable bid
amount) * 1.05, rounded; the second
additional acceptable bid amount equals
the minimum acceptable bid amount
times the sum of one plus two times the
bid increment percentage, rounded, or
(minimum acceptable bid amount) *
1.10, rounded; the third additional
acceptable bid amount equals the
minimum acceptable bid amount times
the sum of one plus three times the bid
increment percentage, rounded, or
(minimum acceptable bid amount) *
1.15, rounded; etc. Note that the bid
increment percentage need not be the
same as the minimum acceptable bid
percentage.
30. In the case of a license for which
the provisionally winning bid has been
withdrawn, the minimum acceptable
bid amount will equal the second
highest bid received for the license.
31. For Auction No. 63, the Bureau
proposes to use a minimum acceptable
bid percentage of five percent. This
means that the minimum acceptable bid
amount for a license will be
approximately five percent greater than
the provisionally winning bid amount
for the license. The Bureau proposes to
use a bid increment percentage of five
percent.
32. The Bureau retains the discretion
to change the minimum acceptable bid
amounts, the minimum acceptable bid
percentage, and the bid increment
percentage if it determines that
circumstances so dictate. The Bureau
E:\FR\FM\22JNN1.SGM
22JNN1
Federal Register / Vol. 70, No. 119 / Wednesday, June 22, 2005 / Notices
will do so by announcement in the FCC
Auction System during the auction. The
Bureau seeks comment on these
proposals.
D. Provisionally Winning Bids
33. At the end of a bidding round, a
provisionally winning bid for each
license will be determined based on the
highest bid amount received for the
license. In the event of identical high
bid amounts being submitted on a
license in a given round (i.e., tied bids),
the Bureau proposes to use a random
number generator to select a single
provisionally winning bid from among
the tied bids. If the auction were to end
with no higher bids being placed for
that license, the winning bidder would
be the one that placed the selected
provisionally winning bid. However, the
remaining bidders, as well as the
provisionally winning bidder, can
submit higher bids in subsequent
rounds. If any bids are received on the
license in a subsequent round, the
provisionally winning bid again will be
determined by the highest bid amount
received for the license.
34. A provisionally winning bid will
remain the provisionally winning bid
until there is a higher bid on the same
license at the close of a subsequent
round, unless the provisionally winning
bid is withdrawn. Provisionally winning
bids at the end of the auction become
the winning bids. Bidders are reminded
that provisionally winning bids confer
credit for activity.
E. Information Regarding Bid
Withdrawal and Bid Removal
35. For Auction No. 63, the Bureau
proposes the following bid removal and
bid withdrawal procedures. Before the
close of a bidding round, a bidder has
the option of removing any bid placed
in that round. By removing selected bids
in the FCC Auction System, a bidder
may effectively unsubmit any bid
placed within that round. A bidder
removing a bid placed in the same
round is not subject to a withdrawal
payment. Once a round closes, a bidder
may no longer remove a bid.
36. A bidder may withdraw its
provisionally winning bids using the
‘‘withdraw bids’’ function in the FCC
Auction System. A bidder that
withdraws its provisionally winning
bid(s) is subject to the bid withdrawal
payment provisions of the
Commission’s rules. The Bureau seeks
comment on these bid removal and bid
withdrawal procedures.
37. In the Part 1 Third Report and
Order, 63 FR 770, January 7, 1998, the
Commission explained that allowing bid
withdrawals facilitates efficient
VerDate jul<14>2003
21:12 Jun 21, 2005
Jkt 205001
aggregation of licenses and the pursuit
of efficient backup strategies as
information becomes available during
the course of an auction. The
Commission noted, however, that, in
some instances, bidders may seek to
withdraw bids for improper reasons.
The Bureau, therefore, has discretion, in
managing the auction, to limit the
number of withdrawals to prevent any
bidding abuses. The Commission stated
that the Bureau should assertively
exercise its discretion, consider limiting
the number of rounds in which bidders
may withdraw bids, and prevent bidders
from bidding on a particular market if
the Bureau finds that a bidder is abusing
the Commission’s bid withdrawal
procedures.
38. Applying this reasoning, the
Bureau proposes to limit each bidder in
Auction No. 63 to withdrawing
provisionally winning bids in no more
than one round during the course of the
auction. To permit a bidder to withdraw
bids in more than one round may
encourage insincere bidding or the use
of withdrawals for anti-competitive
purposes. The round in which
withdrawals may be used will be at each
bidder’s discretion; withdrawals
otherwise must be in accordance with
the Commission’s rules. There is no
limit on the number of provisionally
winning bids that may be withdrawn in
the round in which withdrawals are
used. Withdrawals will remain subject
to the bid withdrawal payment
provisions specified in the
Commission’s rules. The Bureau seeks
comment on this proposal.
F. Stopping Rule
39. The Bureau has discretion ‘‘to
establish stopping rules before or during
multiple round auctions in order to
terminate the auction within a
reasonable time.’’ For Auction No. 63,
the Bureau proposes to employ a
simultaneous stopping rule approach. A
simultaneous stopping rule means that
all licenses remain available for bidding
until bidding closes simultaneously on
all licenses.
40. Bidding will close simultaneously
on all licenses after the first round in
which no bidder submits any new bids,
applies a proactive waiver, or
withdraws any provisionally winning
bids. Thus, unless circumstances dictate
otherwise, bidding will remain open on
all licenses until bidding stops on every
license.
41. However, the Bureau proposes to
retain the discretion to exercise any of
the following options during Auction
No. 63:
i. Use a modified version of the
simultaneous stopping rule. The
PO 00000
Frm 00065
Fmt 4703
Sfmt 4703
36173
modified stopping rule would close the
auction for all licenses after the first
round in which no bidder applies a
waiver, places a withdrawal or submits
any new bids on any license for which
it is not the provisionally winning
bidder. Thus, absent any other bidding
activity, a bidder placing a new bid on
a license for which it is the
provisionally winning bidder would not
keep the auction open under this
modified stopping rule. The Bureau
further seeks comment on whether this
modified stopping rule should be used
at any time or only in stage two of the
auction.
ii. Keep the auction open even if no
bidder submits any new bids, applies a
waiver or places any withdrawals. In
this event, the effect will be the same as
if a bidder had applied a waiver. The
activity rule, therefore, will apply as
usual and a bidder with insufficient
activity will either lose bidding
eligibility or use a remaining activity
rule waiver.
iii. Declare that the auction will end
after a specified number of additional
rounds (‘‘special stopping rule’’). If the
Bureau invokes this special stopping
rule, it will accept bids in the specified
final round(s) and the auction will
close.
42. The Bureau proposes to exercise
these options only in certain
circumstances, for example, where the
auction is proceeding very slowly, there
is minimal overall bidding activity, or it
appears likely that the auction will not
close within a reasonable period of time.
Before exercising these options, the
Bureau is likely to attempt to increase
the pace of the auction by, for example,
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. The Bureau seeks comment on
these proposals.
III. Conclusion
43. Comments are due on or before
June 28, 2005, and reply comments are
due on or before July 6, 2005. All filings
must be addressed to the Commission’s
Secretary Attn: WTB/ASAD, Office of
the Secretary, Federal Communications
Commission. Parties who file by paper
must file an original and four copies of
each filing. U.S. Postal Service firstclass, Express, and Priority mail should
be addressed to 445 12th Street, SW.,
Washington, DC 20554. Filings can be
sent by hand or messenger delivery, by
commercial overnight courier, or by
first-class or overnight U.S. Postal
Service mail. Because of the disruption
of regular mail and other deliveries in
E:\FR\FM\22JNN1.SGM
22JNN1
36174
Federal Register / Vol. 70, No. 119 / Wednesday, June 22, 2005 / Notices
Washington, DC, the Bureau also
requires that all comments and reply
comments be filed electronically.
Comments and reply comments and
copies of material filed with the
Commission pertaining to Auction No.
63, must be sent by electronic mail to
the following address:
auction63@fcc.gov. The electronic mail
containing the comments or reply
comments must include a subject or
caption referring to Auction No. 63
Comments and the name of the
commenting party. The Bureau requests
that parties format any attachments to
electronic mail as Adobe Acrobat
(pdf) or Microsoft Word documents.
Copies of comments and reply
comments will be available for public
inspection between 8 a.m. and 4:30 p.m.
Monday through Thursday and 8 a.m. to
11:30 a.m. on Fridays in the FCC
Reference Information Center, Room
CY–A257, 445 12th Street, SW.,
Washington, DC 20554, and will also be
posted on the Web page for Auction No.
63 at https://wireless.fcc.gov/auctions/
63/.
44. This proceeding has been
designated as a permit-but-disclose
proceeding in accordance with the
Commission’s ex parte rules. Persons
making oral ex parte presentations are
reminded that memoranda summarizing
the presentations must contain
summaries of the substance of the
presentations and not merely a listing of
the subjects discussed. More than a one
or two sentence description of the views
and arguments presented is generally
required. Other rules pertaining to oral
and written ex parte presentations in
permit-but-disclose proceedings are set
forth in section 1.1206(b) of the
Commission’s rules.
Federal Communications Commission.
Gary D. Michaels,
Deputy Chief, Auctions and Spectrum Access
Division.
[FR Doc. 05–12319 Filed 6–21–05; 8:45 am]
20573, within 10 days of the date this
notice appears in the Federal Register.
Agreement No.: 011830–004.
Title: Indamex/APL Agreement.
Parties: American President Lines,
Ltd./APL Co. PTE Ltd. (‘‘APL’’); CMA
CGM, S.A. (‘‘CMA’’); Contship
Containerlines (‘‘Contship’’); and the
Shipping Corporation of India, Ltd.
(‘‘SCI’’).
Filing Party: Wayne R. Rohde, Esq.;
Sher & Blackwell, LLP; 1850 M Street,
NW., Suite 900; Washington, DC 20036.
Synopsis: The amendment deletes SCI
as a party; inserts CP Ships (UK)
Limited/CP Ships in place of Contship;
corrects CMA’s address; adjusts the
vessel size, provision of vessels, and
space allocation; deletes obsolete
language; and restates the agreement.
Agreement No.: 011887–002.
Title: Zim/CCNI Space Charter
Agreement.
Parties: Zim Integrated Shipping
Services, Ltd. and Compania Chilena de
Navegacion Interoceanica.
Filing Party: Wayne R. Rohde, Esq.;
Sher & Blackwell; 1850 M Street, NW.,
Suite 900; Washington, DC 20036.
Synopsis: The amendment adds
authority for the parties to provide one
another with space for the movement of
empty containers.
Agreement No.: 201103–004.
Title: Memorandum Agreement of the
Pacific Maritime Association of
December 14, 1983 Concerning
Assessments to Pay ILWU–PMA
Employee Benefit Costs, as Amended,
Through June 13, 2005.
Parties: Pacific Maritime Association
and International Longshore and
Warehouse Union.
Filing Party: Matthew J. Thomas, Esq.;
Troutman Sanders LLP; 401 9th Street,
NW., Suite 1000; Washington, DC
20004–2134.
Synopsis: The amendment adjusts
assessment rates under the agreement.
BILLING CODE 6712–01–P
By Order of the Federal Maritime
Commission.
Dated: June 16, 2005.
FEDERAL MARITIME COMMISSION
Bryant L. VanBrakle,
Secretary.
[FR Doc. 05–12248 Filed 6–21–05; 8:45 am]
Notice of Agreements Filed
BILLING CODE 6730–01–P
The Commission hereby gives notice
of the filing of the following agreements
under the Shipping Act of 1984.
Interested parties may obtain copies of
agreements by contacting the
Commission’s Office of Agreements at
(202) 523–5793 or via e-mail at
tradeanalysis@fmc.gov. Interested
parties may submit comments on an
agreement to the Secretary, Federal
Maritime Commission, Washington, DC
VerDate jul<14>2003
21:12 Jun 21, 2005
Jkt 205001
FEDERAL MARITIME COMMISSION
Ocean Transportation Intermediary
License Reissuance
Notice is hereby given that the
following Ocean Transportation
Intermediary license has been reissued
by the Federal Maritime Commission
pursuant to section 19 of the Shipping
PO 00000
Frm 00066
Fmt 4703
Sfmt 4703
Act of 1984, as amended by the Ocean
Shipping Reform Act of 1998 (46 U.S.C.
app. 1718) and the regulations of the
Commission pertaining to the licensing
of Ocean Transportation Intermediaries,
46 CFR part 515.
License
No.
Name/Address
018035F ..
Ameritrans World
Group, Inc., 7102
NW 50th Street,
Miami, FL 33466–
5636.
Date
reissued
May 31,
2005.
Sandra L. Kusumoto,
Director, Bureau of Certification and
Licensing.
[FR Doc. 05–12246 Filed 6–21–05; 8:45 am]
BILLING CODE 6730–01–P
FEDERAL MARITIME COMMISSION
Ocean Transportation Intermediary
License; Revocations
The Federal Maritime Commission
hereby gives notice that the following
Ocean Transportation Intermediary
licenses have been revoked pursuant to
section 19 of the Shipping Act of 1984
(46 U.S.C. app. 1718) and the
regulations of the Commission
pertaining to the licensing of Ocean
Transportation Intermediaries, effective
on the corresponding date shown below:
License Number: 013760N
Name: Asia Trans Line NJ, Inc.
Address: 535 Secaucus Road,
Secaucus, NJ 07094.
Date Revoked: June 10, 2005.
Reason: Failed to maintain a valid
bond.
License Number: 018173N
Name: Export Cargo, Inc.
Address: 13100 NW 113 Avenue
Road, Miami, FL 33178.
Date Revoked: May 26, 2005.
Reason: Failed to maintain a valid
bond.
License Number: 018825N
Name: Nara Express, Inc.
Address: 401 E. Ocean Blvd., Suite
204, Long Beach, CA 90802.
Date Revoked: May 26, 2005.
Reason: Failed to maintain a valid
bond.
License Number: 018731N
Name: Seabright Shipping, Inc.
Address: 1525 Seabright Avenue,
Long Beach, CA 90803.
Date Revoked: May 18, 2005.
Reason: Failed to maintain a valid
bond.
License Number: 003984F
Name: Superior Shipping, Inc.
Address: 13910 SW 28th Street,
Miami, FL 33175.
E:\FR\FM\22JNN1.SGM
22JNN1
Agencies
[Federal Register Volume 70, Number 119 (Wednesday, June 22, 2005)]
[Notices]
[Pages 36169-36174]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-12319]
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
[Report No. AUC-05-63-A (Auction No. 63); DA 05-1555]
Multichannel Video Distribution and Data Service Comment Public
Notice
AGENCY: Federal Communications Commissi
[[Page 36170]]
on.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: This document announces the auction of 22 Multichannel Video
Distribution and Data Service (``MVDDS'') licenses scheduled to
commence on December 7, 2005 (Auction No. 63). This document also seeks
comment on reserve prices or minimum opening bids and other procedures
for Auction No. 63.
DATES: Comments are due on or before June 28, 2005, and reply comments
are due on or before July 6, 2005.
ADDRESSES: Parties who file by paper must file an original and four
copies of each filing. U.S. Postal Service first class, express and
priority mail must be addressed to the Office of the Secretary, 445
12th Street, SW., Washington, DC 20554. Comments and reply comments
must also be sent by electronic mail to the following address:
auction63@fcc.gov.
FOR FURTHER INFORMATION CONTACT: For legal questions: Brian Carter at
(202) 418-0660. For general auction questions: Roy Knowles, Debbie
Smith or Barbara Sibert at (717) 338-2888. For service rules questions:
Mindy Littell (legal) or Michael Pollack (technical) at (202) 418-2487.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Public
Notice released on June 9, 2005 Auction No. 63 Comment Public Notice.
The complete text of the Auction No. 63 Comment Public Notice,
including attachments and any related Commission documents is available
for public inspection and copying during regular business hours at the
FCC Reference Information Center, Portals II, 445 12th Street, SW.,
Room CY-A257, Washington, DC 20554. The Auction No. 63 Comment Public
Notice and related Commission documents may also be purchased from the
Commission's duplicating contractor, Best Copy and Printing, Inc.
(BCPI), Portals II, 445 12th Street, SW., Room CY-B402, Washington, DC,
20554, telephone 202-488-5300, facsimile 202-488-5563, or you may
contact BCPI at its Web site: https://www.BCPIWEB.com. When ordering
documents from BCPI, please make sure you provide the appropriate FCC
document number (for example, DA05-1555 for the Auction No. 63 Comment
Public Notice). The Auction No. 63 Comment Public Notice and related
documents are also available on the Internet at the Commission's Web
site: https://wireless.fcc.gov/auctions/63/.
1. The Wireless Telecommunications Bureau (Bureau) announces the
auction of 22 MVDDS licenses. This auction is scheduled to commence on
December 7, 2005. Auction No. 63 will offer the MVDDS licenses that
remained unsold in Auction No. 53, which closed on January 27, 2004.
These licenses authorize the use of one block of unpaired spectrum in
the 12.2-12.7 GHz band and may be used for any digital fixed one-way
non-broadcast service, including direct-to-home/office wireless
service. Mobile and aeronautical services are not authorized. Two-way
services may be provided by using other spectrum or media for the
return or upstream path. Licenses are not available in every market. A
complete list of the licenses available in Auction No. 63 is included
as Attachment A of the Auction No. 63 Comment Public Notice.
2. Auction No. 63 will use the FCC's Integrated Spectrum Auction
System (ISAS or FCC Auction System), which is the Commission's new
auction application filing and bidding system and is an extensive
redesign of the previous auction application and bidding systems. The
redesign includes FCC Form 175 application enhancements such as
discrete data elements in place of free-form exhibits and improved data
accuracy through automated checking of FCC Form 175 applications.
Enhancements have also been made to the FCC Form 175 application search
function. The auction bidding system has also been updated for easier
navigation, customizable results, and improved functionality.
3. The following table describes the licenses that will be offered
in Auction No. 63:
----------------------------------------------------------------------------------------------------------------
Geographic area Number of
Frequency band (GHz) Total Bandwith Pairing type Licenses
----------------------------------------------------------------------------------------------------------------
12.2-12.7........................ 500 MHz............ Unpaired........... MVDDS Service Area. 22
----------------------------------------------------------------------------------------------------------------
4. Section 309(j)(3) of the Communications Act of 1934, as amended,
requires the Commission to ``ensure that, in the scheduling of any
competitive bidding under this subsection, an adequate period is
allowed * * * before issuance of bidding rules, to permit notice and
comment on proposed auction procedures * * *.'' Consistent with the
provisions of Section 309(j)(3) and to ensure that potential bidders
have adequate time to familiarize themselves with the specific rules
that will govern the day-to-day conduct of an auction, the Commission
directed the Bureau, under its existing delegated authority, to seek
comment on a variety of auction-specific procedures prior to the start
of each auction. The Bureau therefore seeks comment on the following
issues relating to Auction No. 63.
I. Auction Structure
A. Simultaneous Multiple-Round Auction Design
5. The Bureau proposes to award all licenses included in Auction
No. 63 in a simultaneous multiple-round auction. This methodology
offers every license for bid at the same time with successive bidding
rounds in which bidders may place bids on individual licenses. The
Bureau seeks comment on this proposal.
B. Upfront Payments and Bidding Eligibility
6. The Bureau has delegated authority and discretion to determine
an appropriate upfront payment for each license being auctioned, taking
into account such factors as the population in each geographic license
area and the value of similar spectrum. The upfront payment is a
refundable deposit made by each bidder to establish eligibility to bid
on licenses. Upfront payments related to the specific spectrum subject
to auction protect against frivolous or insincere bidding and provide
the Commission with a source of funds from which to collect payments
owed at the close of the auction. With these guidelines in mind for
Auction No. 63, the Bureau proposes to calculate upfront payments on a
license-by-license basis as follows:
7. The upfront payment for each license in Auction No. 63 is based
on 50 percent of the corresponding minimum opening bid amount from
Auction No. 53, with a minimum of $1,000 per license. The specific
proposed upfront payment for each license available in Auction No. 63
is set forth in Attachment A of the Auction No. 63 Comment Public
Notice. The Bureau seeks comment on this proposal.
8. The Bureau further proposes that the amount of the upfront
payment submitted by a bidder will determine
[[Page 36171]]
the maximum number of bidding units on which a bidder may place bids.
This limit is a bidder's initial bidding eligibility. Each license is
assigned a specific number of bidding units equal to the upfront
payment listed in Attachment A of the Auction No. 63 Comment Public
Notice, on a bidding unit per dollar basis. Bidding units for a given
license do not change as prices rise during the auction. A bidder's
upfront payment is not attributed to specific licenses. Rather, a
bidder may place bids on any combination of licenses it selected on its
FCC Form 175 as long as the total number of bidding units associated
with those licenses does not exceed the bidder's current eligibility.
Eligibility cannot be increased during the auction; it can only remain
the same or decrease. Thus, in calculating its upfront payment amount,
an applicant must determine the maximum number of bidding units upon
which it may wish to be active (bid on or hold provisionally winning
bids on) in any single round, and submit an upfront payment amount
covering that total number of bidding units. Provisionally winning bids
at the end of the auction become the winning bids. The Bureau seeks
comment on this proposal.
C. Activity Rules
9. 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 wait until late in the auction
before participating. Bidders are required to be active on a specific
percentage of their current bidding eligibility during each round of
the auction. A bidder that does not satisfy the activity rule either
will lose bidding eligibility or use an activity rule waiver.
10. The Bureau proposes to divide the auction into two stages, each
characterized by a different activity requirement. The auction will
start in Stage One. The Bureau proposes that the auction generally will
advance from Stage One to Stage Two when the auction activity level, as
measured by the percentage of bidding units receiving new provisionally
winning bids, is approximately twenty percent or below for three
consecutive rounds of bidding. However, the Bureau further proposes
that the Bureau retain the discretion to change stages unilaterally by
announcement during the auction. In exercising this discretion, the
Bureau will consider a variety of measures of bidder activity,
including, but not limited to, the auction activity level, the
percentage of licenses (as measured in bidding units) on which there
are new bids, the number of new bids, and the percentage increase in
revenue. The Bureau seeks comment on these proposals.
11. For Auction No. 63, the Bureau proposes the following activity
requirements:
Stage One: In each round of the first stage of the auction, a
bidder desiring to maintain its current bidding eligibility is required
to be active on licenses representing at least 80 percent of its
current bidding eligibility. Failure to maintain the requisite activity
level will result in a reduction in the bidder's bidding eligibility
for the next round of bidding unless an activity rule waiver is used.
During Stage One, a bidder's reduced eligibility for the next round
will be calculated by multiplying the bidder's current round activity
by five-fourths (\5/4\).
Stage Two: In each round of the second stage, a bidder desiring to
maintain its current bidding eligibility is required to be active on 95
percent of its current bidding eligibility. During Stage Two, a
bidder's reduced eligibility for the next round will be calculated by
multiplying the bidder's current round activity by twenty-nineteenths
(\20/19\).
12. The Bureau seeks comment on these proposals. Commenters that
believe these activity rules should be modified should explain their
reasoning and comment on the desirability of an alternative approach.
Commenters are advised to support their claims with analyses and
suggested alternative activity rules.
D. Activity Rule Waivers and Reducing Eligibility
13. 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. Activity
rule waivers can be either proactive or automatic and are principally a
mechanism for auction participants to avoid the loss of bidding
eligibility in the event that exigent circumstances prevent them from
placing a bid in a particular round.
14. The FCC Auction System assumes that bidders with insufficient
activity would prefer to apply an activity rule waiver (if available)
rather than lose bidding eligibility. Therefore, the system will
automatically apply a waiver at the end of any bidding round where a
bidder's activity level is below the minimum required unless: (1) The
bidder has no activity rule waivers available; or (2) the bidder
overrides the automatic application of a waiver by reducing
eligibility, thereby meeting the minimum requirement. Note: If a bidder
has no waivers remaining and does not satisfy the required activity
level, its eligibility will be permanently reduced, possibly
eliminating the bidder from further bidding in the auction. A bidder
with insufficient activity may wish to reduce its bidding eligibility
rather than use an activity rule waiver. If so, the bidder must
affirmatively override the automatic waiver mechanism during the
bidding round by using the ``reduce eligibility'' function in the FCC
Auction System. In this case, the bidder's eligibility is permanently
reduced to bring the bidder into compliance with the activity rules as
described above. Once eligibility has been reduced, a bidder will not
be permitted to regain its lost bidding eligibility.
15. A bidder may apply an activity rule waiver proactively as a
means to keep the auction open without placing a bid. If a bidder
proactively applies an activity rule waiver (using the ``apply waiver''
function in the FCC Auction System) during a bidding round in which no
bids or withdrawals are submitted, the auction will remain open and the
bidder's eligibility will be preserved. An automatic waiver applied by
the FCC Auction System in a round in which there are no new bids or
withdrawals will not keep the auction open. Note: Applying a waiver is
irreversible; once a proactive waiver is submitted that waiver cannot
be unsubmitted, even if the round has not yet closed.
16. The Bureau proposes that each bidder in Auction No. 63 be
provided with three activity rule waivers that may be used at the
bidder's discretion during the course of the auction as set forth
above. The Bureau seeks comment on this proposal.
E. Information Relating to Auction Delay, Suspension, or Cancellation
17. For Auction No. 63, the Bureau proposes that, by public notice
or by announcement during the auction, the Bureau 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 efficient conduct of competitive bidding. In
such cases, the Bureau, 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 Bureau to delay or suspend
the auction. The Bureau emphasizes
[[Page 36172]]
that exercise of this authority is solely within the discretion of the
Bureau, and its use is not intended to be a substitute for situations
in which bidders may wish to apply their activity rule waivers. The
Bureau seeks comment on this proposal.
II. Bidding Procedures
A. Round Structure
18. The Commission will conduct Auction No. 63 over the Internet.
Telephonic bidding will also be available. The toll free telephone
number through which telephonic bidding may be accessed will be
provided to bidders.
19. The initial bidding schedule will be announced in a public
notice to be released at least one week before the start of the
auction. The simultaneous multiple-round format will consist of
sequential bidding rounds, each followed by the release of round
results. Details regarding the location and format of round results
will be included in the same public notice.
20. The Bureau 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 Bureau may increase or decrease the amount of time for
the bidding rounds and review periods, or the number of rounds per day,
depending upon the bidding activity level and other factors. The Bureau
seeks comment on this proposal.
B. Reserve Price or Minimum Opening Bid
21. Section 309(j) calls upon the Commission to prescribe methods
for establishing a reasonable reserve price or a minimum opening bid
amount when FCC licenses are subject to auction, unless the Commission
determines that a reserve price or minimum opening bid amount is not in
the public interest. Consistent with this mandate, the Commission has
directed the Bureau to seek comment on the use of a minimum opening bid
amount and/or reserve price prior to the start of each auction.
22. Normally, a reserve price is an absolute minimum price below
which an item will not be sold in a given auction. Reserve prices can
be either published or unpublished. A minimum opening bid amount, on
the other hand, is the minimum bid price set at the beginning of the
auction below which no bids are accepted. It is generally used to
accelerate the competitive bidding process. Also, the auctioneer often
has the discretion to lower the minimum opening bid amount later in the
auction. It is also possible for the minimum opening bid amount and the
reserve price to be the same amount.
23. In light of Section 309(j)'s requirements, the Bureau proposes
to establish minimum opening bid amounts for Auction No. 63. The Bureau
believes a minimum opening bid amount, which has been used in other
auctions, is an effective bidding tool.
24. Specifically, for Auction No. 63, the Bureau proposes to
calculate minimum opening bids on a license-by-license basis as
follows:
The minimum opening bid amount for each license in Auction No. 63
is based on a 50 percent reduction of the corresponding minimum opening
bid amount from Auction No. 53, with a minimum of $1,000 per license.
25. The specific minimum opening bid amount for each license
available in Auction No. 63 is set forth in Attachment A of the Auction
No. 63 Comment Public Notice. The Bureau seeks comment on this
proposal.
26. If commenters believe that these minimum opening bid amounts
will result in substantial numbers of unsold licenses, or are not
reasonable amounts, or should instead operate as reserve prices, they
should explain why this is so, and comment on the desirability of an
alternative approach. Commenters are advised to support their claims
with valuation analyses and suggested reserve prices or minimum opening
bid amount levels or formulas. In establishing the minimum opening bid
amounts, the Bureau particularly seeks comment on such factors as the
amount of spectrum being auctioned, levels of incumbency, the
availability of technology to provide service, the size of the
geographic service areas, issues of interference with other spectrum
bands and any other relevant factors that could reasonably have an
impact on valuation of the MVDDS spectrum. The Bureau also seeks
comment on whether, consistent with Section 309(j), the public interest
would be served by having no minimum opening bid amount or reserve
price.
C. Minimum Acceptable Bid Amounts and Bid Increments
27. In each round, eligible bidders will be able to place bids on a
given license in any of nine different amounts. The FCC Auction System
will list the nine acceptable bid amounts for each license.
28. The minimum acceptable bid amount for a license will be equal
to its minimum opening bid amount until there is a provisionally
winning bid for the license. After there is a provisionally winning bid
for a license, the minimum acceptable bid amount for that license will
be equal to the amount of the provisionally winning bid plus an
additional amount. The minimum acceptable bid amount will be calculated
by multiplying the provisionally winning bid amount times one plus the
minimum acceptable bid percentage--e.g., if the minimum acceptable bid
percentage is 5 percent, the minimum acceptable bid amount will equal
(provisionally winning bid amount) * (1.05), rounded. The Bureau will
round the result using its standard rounding procedures.
29. The nine acceptable bid amounts for each license consist of the
minimum acceptable bid amount and additional amounts calculated using
the minimum acceptable bid amount and the bid increment percentage. The
Bureau will round the results using our standard rounding procedures.
The first additional acceptable bid amount equals the minimum
acceptable bid amount times the sum of one plus the bid increment
percentage, rounded--e.g., if the bid increment percentage is 5
percent, the calculation is (minimum acceptable bid amount) * (1 +
0.05), rounded, or (minimum acceptable bid amount) * 1.05, rounded; the
second additional acceptable bid amount equals the minimum acceptable
bid amount times the sum of one plus two times the bid increment
percentage, rounded, or (minimum acceptable bid amount) * 1.10,
rounded; the third additional acceptable bid amount equals the minimum
acceptable bid amount times the sum of one plus three times the bid
increment percentage, rounded, or (minimum acceptable bid amount) *
1.15, rounded; etc. Note that the bid increment percentage need not be
the same as the minimum acceptable bid percentage.
30. In the case of a license for which the provisionally winning
bid has been withdrawn, the minimum acceptable bid amount will equal
the second highest bid received for the license.
31. For Auction No. 63, the Bureau proposes to use a minimum
acceptable bid percentage of five percent. This means that the minimum
acceptable bid amount for a license will be approximately five percent
greater than the provisionally winning bid amount for the license. The
Bureau proposes to use a bid increment percentage of five percent.
32. The Bureau retains the discretion to change the minimum
acceptable bid amounts, the minimum acceptable bid percentage, and the
bid increment percentage if it determines that circumstances so
dictate. The Bureau
[[Page 36173]]
will do so by announcement in the FCC Auction System during the
auction. The Bureau seeks comment on these proposals.
D. Provisionally Winning Bids
33. At the end of a bidding round, a provisionally winning bid for
each license will be determined based on the highest bid amount
received for the license. In the event of identical high bid amounts
being submitted on a license in a given round (i.e., tied bids), the
Bureau proposes to use a random number generator to select a single
provisionally winning bid from among the tied bids. If the auction were
to end with no higher bids being placed for that license, the winning
bidder would be the one that placed the selected provisionally winning
bid. However, the remaining bidders, as well as the provisionally
winning bidder, can submit higher bids in subsequent rounds. If any
bids are received on the license in a subsequent round, the
provisionally winning bid again will be determined by the highest bid
amount received for the license.
34. A provisionally winning bid will remain the provisionally
winning bid until there is a higher bid on the same license at the
close of a subsequent round, unless the provisionally winning bid is
withdrawn. Provisionally winning bids at the end of the auction become
the winning bids. Bidders are reminded that provisionally winning bids
confer credit for activity.
E. Information Regarding Bid Withdrawal and Bid Removal
35. For Auction No. 63, the Bureau proposes the following bid
removal and bid withdrawal procedures. Before the close of a bidding
round, a bidder has the option of removing any bid placed in that
round. By removing selected bids in the FCC Auction System, a bidder
may effectively unsubmit any bid placed within that round. A bidder
removing a bid placed in the same round is not subject to a withdrawal
payment. Once a round closes, a bidder may no longer remove a bid.
36. A bidder may withdraw its provisionally winning bids using the
``withdraw bids'' function in the FCC Auction System. A bidder that
withdraws its provisionally winning bid(s) is subject to the bid
withdrawal payment provisions of the Commission's rules. The Bureau
seeks comment on these bid removal and bid withdrawal procedures.
37. In the Part 1 Third Report and Order, 63 FR 770, January 7,
1998, the Commission explained that allowing bid withdrawals
facilitates efficient aggregation of licenses and the pursuit of
efficient backup strategies as information becomes available during the
course of an auction. The Commission noted, however, that, in some
instances, bidders may seek to withdraw bids for improper reasons. The
Bureau, therefore, has discretion, in managing the auction, to limit
the number of withdrawals to prevent any bidding abuses. The Commission
stated that the Bureau should assertively exercise its discretion,
consider limiting the number of rounds in which bidders may withdraw
bids, and prevent bidders from bidding on a particular market if the
Bureau finds that a bidder is abusing the Commission's bid withdrawal
procedures.
38. Applying this reasoning, the Bureau proposes to limit each
bidder in Auction No. 63 to withdrawing provisionally winning bids in
no more than one round during the course of the auction. To permit a
bidder to withdraw bids in more than one round may encourage insincere
bidding or the use of withdrawals for anti-competitive purposes. The
round in which withdrawals may be used will be at each bidder's
discretion; withdrawals otherwise must be in accordance with the
Commission's rules. There is no limit on the number of provisionally
winning bids that may be withdrawn in the round in which withdrawals
are used. Withdrawals will remain subject to the bid withdrawal payment
provisions specified in the Commission's rules. The Bureau seeks
comment on this proposal.
F. Stopping Rule
39. The Bureau has discretion ``to establish stopping rules before
or during multiple round auctions in order to terminate the auction
within a reasonable time.'' For Auction No. 63, the Bureau proposes to
employ a simultaneous stopping rule approach. A simultaneous stopping
rule means that all licenses remain available for bidding until bidding
closes simultaneously on all licenses.
40. Bidding will close simultaneously on all licenses after the
first round in which no bidder submits any new bids, applies a
proactive waiver, or withdraws any provisionally winning bids. Thus,
unless circumstances dictate otherwise, bidding will remain open on all
licenses until bidding stops on every license.
41. However, the Bureau proposes to retain the discretion to
exercise any of the following options during Auction No. 63:
i. Use a modified version of the simultaneous stopping rule. The
modified stopping rule would close the auction for all licenses after
the first round in which no bidder applies a waiver, places a
withdrawal or submits any new bids on any license for which it is not
the provisionally winning bidder. Thus, absent any other bidding
activity, a bidder placing a new bid on a license for which it is the
provisionally winning bidder would not keep the auction open under this
modified stopping rule. The Bureau further seeks comment on whether
this modified stopping rule should be used at any time or only in stage
two of the auction.
ii. Keep the auction open even if no bidder submits any new bids,
applies a waiver or places any withdrawals. In this event, the effect
will be the same as if a bidder had applied a waiver. The activity
rule, therefore, will apply as usual and a bidder with insufficient
activity will either lose bidding eligibility or use a remaining
activity rule waiver.
iii. Declare that the auction will end after a specified number of
additional rounds (``special stopping rule''). If the Bureau invokes
this special stopping rule, it will accept bids in the specified final
round(s) and the auction will close.
42. The Bureau proposes to exercise these options only in certain
circumstances, for example, where the auction is proceeding very
slowly, there is minimal overall bidding activity, or it appears likely
that the auction will not close within a reasonable period of time.
Before exercising these options, the Bureau is likely to attempt to
increase the pace of the auction by, for example, 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. The Bureau seeks comment on these
proposals.
III. Conclusion
43. Comments are due on or before June 28, 2005, and reply comments
are due on or before July 6, 2005. All filings must be addressed to the
Commission's Secretary Attn: WTB/ASAD, Office of the Secretary, Federal
Communications Commission. Parties who file by paper must file an
original and four copies of each filing. U.S. Postal Service first-
class, Express, and Priority mail should be addressed to 445 12th
Street, SW., Washington, DC 20554. Filings can be sent by hand or
messenger delivery, by commercial overnight courier, or by first-class
or overnight U.S. Postal Service mail. Because of the disruption of
regular mail and other deliveries in
[[Page 36174]]
Washington, DC, the Bureau also requires that all comments and reply
comments be filed electronically. Comments and reply comments and
copies of material filed with the Commission pertaining to Auction No.
63, must be sent by electronic mail to the following address:
auction63@fcc.gov. The electronic mail containing the comments or reply
comments must include a subject or caption referring to Auction No. 63
Comments and the name of the commenting party. The Bureau requests that
parties format any attachments to electronic mail as Adobe[reg]
Acrobat[reg] (pdf) or Microsoft[reg] Word documents. Copies of comments
and reply comments will be available for public inspection between 8
a.m. and 4:30 p.m. Monday through Thursday and 8 a.m. to 11:30 a.m. on
Fridays in the FCC Reference Information Center, Room CY-A257, 445 12th
Street, SW., Washington, DC 20554, and will also be posted on the Web
page for Auction No. 63 at https://wireless.fcc.gov/auctions/63/.
44. This proceeding has been designated as a permit-but-disclose
proceeding in accordance with the Commission's ex parte rules. Persons
making oral ex parte presentations are reminded that memoranda
summarizing the presentations must contain summaries of the substance
of the presentations and not merely a listing of the subjects
discussed. More than a one or two sentence description of the views and
arguments presented is generally required. Other rules pertaining to
oral and written ex parte presentations in permit-but-disclose
proceedings are set forth in section 1.1206(b) of the Commission's
rules.
Federal Communications Commission.
Gary D. Michaels,
Deputy Chief, Auctions and Spectrum Access Division.
[FR Doc. 05-12319 Filed 6-21-05; 8:45 am]
BILLING CODE 6712-01-P