Auction of Full Power Television Construction Permits Scheduled for March 15, 2006, Notice and Filing Requirements, Minimum Opening Bids, Upfront Payments and Other Procedures for Auction No. 64, 76836-76849 [E5-7872]

Agencies

• FEDERAL COMMUNICATIONS COMMISSION

[Federal Register Volume 70, Number 248 (Wednesday, December 28, 2005)]
[Notices]
[Pages 76836-76849]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-7872]


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FEDERAL COMMUNICATIONS COMMISSION

[Report No. AUC-05-64-B (Auction No. 64); DA 05-2987]


Auction of Full Power Television Construction Permits Scheduled 
for March 15, 2006, Notice and Filing Requirements, Minimum Opening 
Bids, Upfront Payments and Other Procedures for Auction No. 64

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: This document announces the procedures and minimum opening 
bids for the upcoming auction of eleven full power television station 
construction permits. This document is intended to familiarize 
prospective bidders with the procedures and minimum opening bids for 
Auction No. 64.

DATES: Auction No. 64 short-form applications are due before 6 p.m. 
Eastern Time (ET) on January 20, 2006. Upfront payments are due before 
6 p.m. ET on February 17, 2006. Competitive bidding is scheduled to 
begin on March 15, 2006.

FOR FURTHER INFORMATION CONTACT: Auction and Spectrum Access Division, 
Wireless Telecommunications Bureau: for legal questions: Lynne Milne at 
(202) 418-0660; for general auction questions: Debbie Smith or Lisa 
Stover at (717) 338-2888. Video Division, Media Bureau: for service 
rule questions: Shaun Maher at (202) 418-2324 or Shaleim Henry at (202) 
418-1600.

SUPPLEMENTARY INFORMATION: This is a summary of the Auction No. 64 
Procedures Public Notice released on November 23, 2005. The complete 
text of the Auction No. 64 Procedures Public Notice, including 
attachments and related Commission documents, is available for public 
inspection and copying from 8 a.m. to 4:30 p.m. Monday through Thursday 
or from 8 a.m. to 11:30 p.m. on Friday at the FCC Reference Information 
Center, Portals II, 445 12th Street, SW., Room CY-A257, Washington, DC 
20554. The Auction No. 64 Procedures 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 Web site: https://
www.BCPIWEB.com. When ordering documents from BCPI, please provide the 
appropriate FCC document number (for example, DA 05-2987 for the 
Auction No. 64 Procedures Public Notice). The Auction No. 64 Procedures 
Public Notice and related documents are available also on the Internet 
at the Commission's Web site: https://wireless.fcc.gov/auctions/64/.

I. General Information

A. Introduction

    1. The Media Bureau (MB) and the Wireless Telecommunications Bureau 
(WTB) (collectively the Bureaus) announce the procedures and minimum 
opening bid amounts for the auction of 11 full power television station 
construction permits in Auction No. 64, scheduled to begin on March 15, 
2006. On September 23, 2005, in accordance with 47 U.S.C. 309(j)(4), 
the Bureaus released a public notice seeking comment on reserve prices 
or minimum opening bid amounts and the procedures to be used in Auction 
No. 64. The Bureaus received comments from one commenter in response to 
the Auction No. 64 Comment Public Notice, 70 FR 58700 (October 7, 
2005).
i. Background
    2. The Commission's competitive bidding rules will be used to 
select among mutually exclusive applications for these construction 
permits in Auction No. 64. When two or more short-form applications are 
accepted for filing for the same construction permit

[[Page 76837]]

in Auction No. 64, mutual exclusivity exists for auction purposes. Once 
mutual exclusivity exists for auction purposes, even if only one 
applicant for a particular construction permit submits an upfront 
payment, that applicant is required to submit a bid in order to obtain 
the construction permit. Any applicant that submits a short-form 
application that is accepted for filing but fails to timely submit an 
upfront payment will retain its status as an applicant in Auction No. 
64 and will remain subject to the Commission's anti-collusion rules, 
but, having purchased no bidding eligibility, will not be eligible to 
bid.
ii. Television Station Construction Permits To Be Auctioned
    3. Auction No. 64 will offer 11 construction permits for full power 
television stations. Ten of these construction permits are open to any 
interested party. The locations and channels of the ten open 
construction permits are designated as: Greeley, Colorado (DTV 45), 
Pueblo, Colorado (NTSC 48), Apalachicola, Florida (DTV 3), Derby, 
Kansas (DTV 46), Topeka, Kansas (NTSC 22+), Duluth, Minnesota (NTSC 
27), Osage Beach, Missouri (NTSC 49+), Bend, Oregon (NTSC 51), 
Victoria, Texas (NTSC 31), and Medical Lake, Washington (DTV 51). The 
remaining permit, with a location and channel designated as Jackson, 
Mississippi (NTSC 51), is closed, and only the five listed parties that 
previously filed long-form applications may participate in the bidding 
for this permit, provided such parties submit an acceptable short-form 
application pursuant to the Commission's rules and procedures described 
in the Auction No. 64 Procedures Public Notice.
    4. A complete list of construction permits available in Auction No. 
64 is included in Attachment A of the Auction No. 64 Procedures Public 
Notice. Interested parties should note that some of the stations listed 
in Attachment A of the Auction No. 64 Procedures Public Notice are 
single channel, digital-only television stations and are indicated as 
DTV. These stations must be operated in digital television mode. Those 
stations indicated as NTSC are single-channel stations that must be 
operated as either NTSC analog stations or, if they meet the 
Commission's interference requirements, may be operated as digital only 
television stations.
    5. To be eligible to participate in competitive bidding for any of 
the construction permits identified in Attachment A of the Auction No. 
64 Procedures Public Notice, each interested party, including those 
individuals or entities with a pending long-form application listed in 
Attachment A of the Auction No. 64 Procedures Public Notice, must 
submit before the deadline of January 20, 2006, a complete and correct 
short-form application and otherwise comply with the deadlines and 
requirements outlined in the Auction No. 64 Procedures Public Notice. 
The Media Bureau will dismiss the pending long-form application (FCC 
Form 301) listed in Attachment A of the Auction No. 64 Procedures 
Public Notice of any applicant which fails to file a short-form 
application (FCC Form 175) to participate in Auction No. 64 before the 
deadline specified in the Auction No. 64 Procedures Public Notice or 
which fails to submit a sufficient upfront payment before the deadline 
specified in the same public notice.
a. Open Construction Permits
    6. Pursuant to the policies established in the Broadcast 
Competitive Bidding First Report and Order, 63 FR 48615 (September 11, 
1998), any interested party may apply for any of the ten open 
construction permits listed in Attachment A of the Auction No. 64 
Procedures Public Notice. Long-form applications were filed previously 
for some of these open television station construction permits. The 
pending applications for these open construction permits also are 
listed in Attachment A of the Auction No. 64 Procedures Public Notice.
    7. Any party filing for an open construction permit with a pending 
long-form application should understand that it is likely that its 
application will be mutually exclusive with the previously-filed 
application. Even if there is no pending long-form application for an 
open construction permit listed in Attachment A of the Auction No. 64 
Procedures Public Notice, short-form applications specifying the same 
open construction permit will be considered mutually exclusive.
    8. In response to the Auction No. 64 Comment Public Notice, one 
individual filed comments requesting that the construction permit for 
the new television station on Channel 31 at Victoria, Texas be removed 
from the auction and that there be no opportunity to file a competing 
application against his pending application for station TV-NTS009-31. 
The commenter expressed concern that the Commission will be allowing 
other parties to file competing applications for a full power 
television station that may cause interference to his licensed Class A 
low power television (LPTV) station KVHM-LP, on Channel 31 at Victoria, 
Texas. The commenter maintained that only his application for Victoria 
can be granted because the issue of interference to his Class A LPTV 
station can only be resolved with his consent. The commenter requests 
that his application for Channel 31 at Victoria be withdrawn from the 
auction and granted outside of the auction process.
    9. The commenter essentially requests that the staff review the 
technical qualifications of all proposals for the new Victoria 
television station prior to auction. In the Broadcast Competitive 
Bidding First Report and Order, the Commission rejected such a pre-
auction review of technical proposals to minimize the potential for 
delay and promote the deployment of new broadcasting service to the 
public. The Bureaus will not, therefore, consider whether other 
proposals for a new Victoria television station would be technically 
qualified prior to the auction.
    10. Moreover, the Bureaus declined to remove the Victoria 
construction permit from this auction based on speculation that a long-
form application filed by a winning bidder may fail to protect from 
harmful interference the Class A low power television station (KVHM-LP) 
licensed to the commenter. After the close of competitive bidding, the 
winning bidder for the Victoria construction permit for TV-NTS009-31, 
if any, will be required to submit a long-form application and 
demonstrate inter alia compliance with all of the technical rules 
concerning operation of a full-power television station. As part of its 
long-form application review, the staff will determine whether the 
winning bidder's proposed facility would cause harmful interference to 
all relevant stations, including the commenter's Class A LPTV station. 
For this reason, the Bureaus declined to remove from Auction No. 64 the 
construction permit for station TV-NTS009-31 at Victoria, Texas. 
However, the Bureaus take this opportunity to remind potential bidders 
to undertake appropriate due diligence, including engineering studies, 
site inspections, and other research, prior to participating in this 
auction to ensure that their desired facility may be implemented.
b. Closed Construction Permit
    11. Participation in competitive bidding for the TV-NTS011-51 
construction permit will be limited to those applicants identified for 
the closed construction permit in Attachment A of the Auction No. 64 
Procedures Public Notice, provided

[[Page 76838]]

such parties submit an acceptable short-form application pursuant to 
the Commission's rules and procedures described in the Auction No. 64 
Procedures Public Notice.
    12. In the Auction No. 64 Comment Public Notice, the Bureaus 
required each of the nine specified auction applicants for this closed 
construction permit to submit its FCC registration number (FRN) before 
5 p.m. Eastern Time (ET) on November 16, 2005. Four out of the nine 
specified applicants failed to submit the required FRN. Accordingly, on 
November 23, 2005, the Video Division of the Media Bureau dismissed 
four long-form applications for a construction permit for station TV-
NTS011-51, on NTSC channel 51, at Jackson, Mississippi. A separate 
public notice announcing that action was released December 1, 2005 
(Broadcast Actions, Public Notice, Report No. 46122 (Media Bur. Dec. 1, 
2005)).

B. Rules and Disclaimers

i. Relevant Authority
    13. Prospective applicants must familiarize themselves thoroughly 
with the Commission's general competitive bidding rules, including 
recent amendments and clarifications. Broadcasters also should 
familiarize themselves with the Commission's rules relating to the 
television broadcast service contained in 47 CFR 73.601-73.699 and 
73.1001-73.4280. Prospective applicants also must be familiar with the 
rules relating to competitive bidding proceedings contained in 47 CFR 
1.2001-1.2112 and broadcast auctions contained in 47 CFR 73.5000-
73.5009. Prospective applicants also must be thoroughly familiar with 
the procedures, terms and conditions (collectively, terms) contained in 
the Auction No. 64 Procedures Public Notice, the Auction No. 64 Comment 
Public Notice, the Broadcast Competitive Bidding First Report and 
Order, the Broadcast Competitive Bidding First Reconsideration Order, 
64 FR 24523 (May 7, 1999), the New Entrant Bidding Credit 
Reconsideration Order, 64 FR 44856 (August 18, 1999), and the 
Noncommercial Educational Second Report and Order, 68 FR 26220 (May 15, 
2003).
    14. 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 applicants. It is the responsibility of each applicant 
to remain current with all Commission rules and with all public notices 
pertaining to this auction.
ii. Prohibition of Collusion
    15. The Commission's Part 1 rules prohibit applicants competing for 
construction permits in the same geographic license area from 
communicating with each other about bids, bidding strategies, or 
settlements unless such applicants have identified each other on their 
short-form applications as parties with whom they have entered into 
agreements under 47 CFR 1.2105(a)(2)(viii). Thus, applicants competing 
for construction permits in the same geographic license area must 
affirmatively avoid all communications with each other that affect or, 
in their reasonable assessment have the potential to affect, bids or 
bidding strategy. In some instances, this prohibition extends to 
communications regarding the post-auction market structure. This 
prohibition begins at the short-form application filing deadline and 
ends at the down payment deadline after the auction, which will be 
announced in a future public notice. This prohibition applies to all 
applicants regardless of whether such applicants become qualified 
bidders or actually bid.
    16. In Auction No. 64, the rule would apply to applicants bidding 
for any of the same construction permits. Therefore, two applicants 
that apply to bid for any one common television station construction 
permit would be precluded from engaging in prohibited communications 
during the period from the short-form application deadline until the 
down payment deadline following the close of the auction. In addition, 
even if auction applicants select to bid on their short-form 
applications for only one common television station construction 
permit, they may not discuss with each other their bids or bidding 
strategies relating to any television station construction permit for 
which either applicant selected to bid on the applicant's short-form 
application.
    17. For purposes of this prohibition, 47 CFR 1.2105(c)(7)(i) 
defines applicant as including all officers and directors of the entity 
submitting a short-form application to participate in the auction, as 
well as all controlling interests of that entity, all holders of 
partnership and other ownership interests and any stock interest 
amounting to 10 percent or more of the entity, or outstanding stock, or 
outstanding voting stock of the entity submitting a short-form 
application.
    18. Applicants competing for construction permits for any of the 
same television stations must not communicate indirectly about bids or 
bidding strategy. Accordingly, such applicants are encouraged not to 
use the same individual as an authorized bidder. A violation of the 
anti-collusion 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 
applicants that the authorized bidder 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 engineering firm 
or consulting firm), a violation similarly could occur. In such a case, 
at a minimum, 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 anti-collusion rule. Similarly, the Bureaus noted that 
a violation of the anti-collusion rule could occur in other contexts, 
such as, an individual serving as an officer for two or more competing 
applicants.
    19. The Commission's anti-collusion rules allow applicants to form 
certain agreements during the auction, provided the applicants have not 
applied for any of the same construction permits. However, applicants 
may enter into bidding agreements before filing their short-form 
applications, as long as they disclose the existence of the 
agreement(s) in their short-form application. If parties agree in 
principle on all material terms prior to the short-form filing 
deadline, those parties must be identified on the short-form 
application under 47 CFR 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, 
discussions or communications with other applicants for construction 
permits for the same designated market. Applicants that are winning 
bidders will be required pursuant to 47 CFR 1.2107(d) to disclose in 
their long-form applications the specific terms, conditions, and 
parties involved in all bidding consortia, joint ventures, 
partnerships, and other arrangements entered into relating to the 
competitive bidding process.
    20. By electronically submitting its short-form application, each 
applicant certifies its compliance with 47 CFR 1.2105(c) and 73.5002. 
However, the Bureaus caution that merely filing a certifying statement 
as part of an

[[Page 76839]]

application will not outweigh specific evidence that collusive behavior 
has occurred, nor will it preclude the initiation of an investigation 
when warranted.
    21. In addition, 47 CFR 1.65 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, 47 CFR 1.65 requires an auction applicant to notify 
the Commission of any violation of the anti-collusion rules upon 
learning of such violation. Applicants are therefore required by 47 CFR 
1.65 to make such notification to the Commission immediately upon 
discovery. In addition, 47 CFR 1.2105(c)(6) requires that any applicant 
that makes or receives a communication prohibited by 47 CFR 1.2105(c) 
must report such communication to the Commission in writing 
immediately, and in no case later than five business days after the 
communication occurs.
    22. Any applicant found to have violated the anti-collusion rule 
may be subject to sanctions. Applicants are reminded that they are 
subject to the antitrust laws, which are designed to prevent 
anticompetitive behavior in the marketplace. Compliance with the 
disclosure requirements of the Commission's anti-collusion rule will 
not necessarily insulate a party from enforcement of the antitrust 
laws. If an applicant is found to have violated the antitrust laws or 
the Commission's rules in connection with its participation in the 
competitive bidding process, it may be subject to forfeiture of its 
upfront payment, down payment, or full bid amount and may be prohibited 
from participating in future auctions.
    23. A summary listing of documents issued by the Commission and the 
Bureaus addressing the application of the anti-collusion rule may be 
found in Attachment F of the Auction No. 64 Procedures Public Notice 
and these documents are available on the Commission's auction anti-
collusion Web page.
iii. Due Diligence
    24. Potential bidders are reminded that they are solely responsible 
for investigating and evaluating all technical and market place factors 
that may have a bearing on the value of the broadcast facilities in 
this auction. 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 
construction permittee in the broadcast service, subject to certain 
conditions and regulations. An FCC auction does not constitute an 
endorsement by the FCC of any particular service, technology, or 
product, nor does an FCC construction permit or license constitute a 
guarantee of business success. Applicants should perform their 
individual due diligence before proceeding as they would with any new 
business venture.
    25. Potential bidders are strongly encouraged to conduct their own 
research prior to the beginning of bidding in Auction No. 64 in order 
to determine the existence of any pending administrative or judicial 
proceedings that might affect their decision regarding participation in 
bidding in the auction. Participants in Auction No. 64 are strongly 
encouraged to continue such research throughout the auction. In 
addition, potential bidders should perform technical analyses 
sufficient to assure themselves that, should they prevail in 
competitive bidding for a specific construction permit, they will be 
able to build and operate facilities that will comply fully with the 
Commission's technical and legal requirements.
    26. Potential bidders should also be aware that certain pending and 
future applications (including those for modification), petitions for 
rulemaking, requests for special temporary authority, waiver requests, 
petitions to deny, petitions for reconsideration, informal oppositions, 
and applications for review before the Commission may relate to 
particular applicants or incumbent construction permittees or incumbent 
licensees or the construction permits available in Auction No. 64. In 
addition, pending and future judicial proceedings may relate to 
particular applicants, incumbent construction permittees, or incumbent 
licensees, or the construction permits available in Auction No. 64. 
Prospective bidders are responsible for assessing the likelihood of the 
various possible outcomes, and considering their potential impact on 
construction permits available in this auction.
    27. In particular, potential bidders are strongly encouraged to 
review all underlying Commission orders, such as the specific report 
and order amending the television and digital television Tables of 
Allotments and allotting the analog or digital television channel(s) on 
which they plan to bid. Bidders are also responsible for reviewing all 
pending rulemaking petitions and open proceedings that might affect the 
construction permit(s) on which they plan to bid.
    28. Prospective bidders should perform due diligence to identify 
and consider all proceedings that may affect the construction permits 
being auctioned. The Bureaus note that resolution of such matters could 
have an impact on the availability of spectrum for construction permits 
included in Auction No. 64. In addition, although the Commission may 
continue to act on various pending applications, informal objections, 
petitions, and other requests for Commission relief, some of these 
matters may not be resolved by the time of the beginning of bidding in 
this auction.
    29. Applicants are solely responsible for identifying associated 
risks and for investigating and evaluating the degree to which such 
matters may affect their ability to bid on, otherwise acquire, or make 
use of the construction permits available in Auction No. 64. Potential 
applicants are strongly encouraged to physically inspect any sites 
located in, or near, the service area for which they plan to bid, and 
also to familiarize themselves with the environmental assessment 
obligations as described in 47 CFR 1.1305--1.1319.
    30. Potential bidders for any new television facility in Auction 
No. 64 should note that full service television stations are in the 
process of converting from analog to digital operation and that 
stations may have pending applications to construct and operate digital 
television facilities, construction permits and/or licenses for such 
digital facilities. Bidders should investigate the impact such 
applications, permits and licenses may have on their ability to operate 
the facilities proposed in this auction.
    31. In response to the enactment of the Community Broadcasters 
Protection Act of 1999, in the Class A Report and Order, 65 FR 29985 
(May 10, 2000), the Commission adopted rules to establish a new Class A 
television service, including rules to provide interference protection 
for eligible Class A television stations from new full power television 
stations. As required by the rulemaking order, a winning bidder in 
Auction No. 64, upon submission of its long-form application, will have 
to provide interference protection to qualified Class A television 
stations. Therefore, potential bidders are encouraged to perform 
engineering studies to determine the existence of Class A television 
stations and their effect on the ability to operate any full power 
television station proposed in this auction.
    32. Potential bidders may research the Media Bureau's Consolidated 
Data Base System (CDBS) on the Internet in order

[[Page 76840]]

to determine which channels are licensed already to incumbent licensees 
or previously authorized to construction permittees, including 
information about the identity and location of Class A television 
stations. The Commission makes no representations or guarantees 
regarding the accuracy or completeness of information in its databases 
or any third party databases. To the extent the Commission's databases 
may not include all information deemed necessary or desirable by a 
bidder, bidders may obtain or verify such information from independent 
sources or assume the risk of any incompleteness or inaccuracy in said 
databases. Furthermore, 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 
database.
iv. Bidder Alerts
    33. As is the case with many business investment opportunities, 
some unscrupulous entrepreneurs may attempt to use Auction No. 64 to 
deceive and defraud unsuspecting investors. Information about deceptive 
telemarketing investment schemes is available from the Federal Trade 
Commission (FTC) at (202) 326-2222 and from the Securities and Exchange 
Commission (SEC) at (202) 942-7040. Complaints about specific deceptive 
telemarketing investment schemes should be directed to the FTC, the 
SEC, or the National Fraud Information Center at 800-876-7060.
v. National Environmental Policy Act Requirements
    34. Construction permittees or licensees must comply with the 
Commission's rules regarding implementation of the National 
Environmental Policy Act (NEPA). The construction of a broadcast 
facility is a Federal action and the construction permittee must comply 
with the Commission's NEPA rules for each such facility. The 
Commission's NEPA rules require, among other things, that the 
construction permittee consult with expert agencies having NEPA 
responsibilities, including the U.S. Fish and Wildlife Service, the 
State Historic Preservation Office, the U.S. Army Corps of Engineers 
and the Federal Emergency Management Agency (through the local 
authority with jurisdiction over floodplains). The construction 
permittee must prepare environmental assessments for broadcast 
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 
construction permittee also must 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
    35. Bidding in this auction will begin on Wednesday, March 15, 
2006. 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 construction permits will be 
conducted on each business day until bidding has stopped on all 
construction permits.
ii. Auction Title
    36. Auction No. 64--Full Power Television.
iii. Bidding Methodology
    37. The bidding methodology for Auction No. 64 will be simultaneous 
multiple round bidding. The Commission will conduct this auction over 
the Internet using the FCC's Integrated Spectrum Auction system (ISAS 
or FCC Auction System), and telephonic bidding will be available as 
well. Qualified bidders are permitted to bid electronically via the 
Internet or by telephone.
iv. Pre-Auction Dates and Deadlines
Auction Seminar--January 11, 2006
FCC Form 175 Filing Window Opens--January 11, 2006; 12 p.m. ET
FCC Form 175 Filing Window Deadline--January 20, 2006; 6 p.m. ET
Upfront Payments (via wire transfer)--February 17, 2006; 6 p.m. ET
Mock Auction--March 13, 2006
Auction Begins--March 15, 2006
v. Requirements for Participation
    38. Those wishing to participate in the auction must submit a 
short-form application (FCC Form 175) electronically prior to 6 p.m. 
ET, January 20, 2006, following the electronic filing procedures set 
forth in Attachment C of the Auction No. 64 Procedures Public Notice; 
submit a sufficient upfront payment and an FCC Remittance Advice Form 
(FCC Form 159) before 6:00 p.m. ET, February 17, 2006; and comply with 
all provisions outlined in this public notice and applicable Commission 
rules.
vi. General Contact Information
GENERAL AUCTION INFORMATION
    General Auction Questions
    Seminar Registration
    FCC Auctions Hotline, (888) 225-5322, option two; or (717) 338-2888
    Hours of service: 8 a.m.-5:30 p.m. ET, Monday through Friday
AUCTION LEGAL INFORMATION
    Auction Rules, Policies, Regulations
    Auctions and Spectrum Access Division
    (202) 418-0660
LICENSING INFORMATION
    Rules, Policies, Regulations
    Licensing Issues, Engineering Issues, Due Diligence, Incumbency 
Issues
    Video Division
    (202) 418-1600
TECHNICAL SUPPORT
    Electronic Filing
    FCC Auction System
    FCC Auctions Technical Support Hotline
    (877) 480-3201, option nine; or (202) 414-1250, (202) 414-1255 
(TTY)
    Hours of service: 8 a.m.--6 p.m. ET, Monday through Friday
PAYMENT INFORMATION
    Wire Transfers
    Refunds
    FCC Auctions Accounting Branch
    (202) 418-0578, (202) 418-2843 (Fax)
AUCTION BIDDER LINE
    Will be furnished only to qualified bidders
FCC COPY CONTRACTOR
    Additional Copies of
    Commission Documents
    Best Copy and Printing, Inc
    445 12th Street, SW., Room CY-B402, Washington, DC 20554, (800) 
378-3160, https://www.bcpiweb.com
PRESS INFORMATION
    Chelsea Fallon (202) 418-7991
FCC FORMS
    (800) 418-3676 (outside Washington, DC), (202) 418-3676 (in the 
Washington area), https://www.fcc.gov/formpage.html
ACCESSIBLE FORMATS
    Braille, large print, electronic files, or audio format for people 
with disabilities
    Consumer and Governmental Affairs Bureau
    (202) 418-0530 or (202) 418-0432 (TTY), fcc504@fcc.gov
FCC INTERNET SITES
    https://www.fcc.gov
    https://wireless.fcc.gov/auctions
    https://wireless.fcc.gov/uls
    https://www.fcc.gov/mb

II. Short-Form Application (FCC Form 175) Requirements

    39. Entities seeking construction permits available in Auction No. 
64

[[Page 76841]]

must file electronically via the FCC Auction System an application to 
participate in an FCC auction, referred to as a short-form application 
or FCC Form 175, before 6 p.m. ET on January 20, 2006, following the 
procedures prescribed in Attachment C to the Auction No. 64 Procedures 
Public Notice. For Auction No. 64, if an applicant claims eligibility 
for a bidding credit, the information provided in its FCC Form 175 will 
be used in determining whether the applicant is eligible for the 
claimed bidding credit. Applicants bear full responsibility for 
submission of accurate, complete and timely short-form applications. 
All applicants must certify on their short-form applications under 
penalty of perjury that they are legally, technically, financially and 
otherwise qualified to hold a license. Applicants should read carefully 
the instructions provided in Attachment C of the Auction No. 64 
Procedures Public Notice and should consult the Commission's rules to 
ensure that, in addition to the materials described below, all the 
information that is required under the Commission's rules is included 
with their short-form applications.
    40. An entity may not submit more than one short-form application 
in a single auction. In the event that a party submits multiple short-
form applications, such additional applications will be dismissed.
    41. Applicants also should note that submission of a short-form 
application constitutes a representation by the certifying official 
that he or she is an authorized representative of the applicant, has 
read the form's instructions and certifications, and that the contents 
of the application, its certifications, and any attachments are true 
and correct. Submission of a false certification to the Commission may 
result in penalties, including monetary forfeitures, license 
forfeitures, ineligibility to participate in future auctions, and/or 
criminal prosecution.

A. New Entrant Bidding Credit

    42. The Commission adopted a tiered New Entrant Bidding Credit for 
broadcast auction applicants with no, or very few, other media 
interests. The determination of an auction applicant's eligibility for 
the New Entrant Bidding Credit considers the interests of the 
applicant, and of any individuals or entities with an attributable 
interest in the applicant, in other media of mass communications. The 
applicant's attributable interests shall be determined as of the short-
form application filing deadline, January 20, 2006. Thus, the 
applicant's maximum new entrant bidding credit eligibility will be 
determined as of the short-form application filing deadline. Any 
applicant intending to divest a media interest or make any other 
ownership changes, such as resignation of positional interests, in 
order to avoid attribution for purposes of qualifying for the New 
Entrant Bidding Credit must have consummated such divestment 
transactions or have completed such ownership changes by no later than 
the short-form filing deadline, January 20, 2006. An applicant cannot 
qualify for a bidding credit, nor upgrade a previously claimed bidding 
credit, based upon ownership or positional changes occurring after the 
short-form application filing deadline. Prospective applicants are 
reminded, moreover, that events occurring after the short-form filing 
deadline, such as the acquisition of attributable interests in media of 
mass communications, may cause diminishment or loss of the bidding 
credit, and must be reported immediately.
    43. Under traditional broadcast attribution rules, those entities 
or individuals with an attributable interest in an applicant include, 
all officers and directors of a corporate applicant; any owner of 5 
percent or more of the voting stock of a corporate applicant; all 
partners and limited partners of a partnership bidder, unless the 
limited partners are sufficiently insulated; and all members of a 
limited liability company, unless sufficiently insulated.
    44. In cases where an applicant's spouse or close family member 
holds other media interests, such interests are not automatically 
attributable to the applicant. The Commission decides attribution 
issues in this context based on certain factors traditionally 
considered relevant. Applicants should note that the mass media 
attribution rules were revised in 1999.
    45. Applicants also are reminded that, by the New Entrant Bidding 
Credit Reconsideration Order, the Commission further refined the 
eligibility standards for the New Entrant Bidding Credit, judging it 
appropriate to attribute the media interests held by very substantial 
investors in, or creditors of, an applicant claiming new entrant 
status. Specifically, the attributable mass media interests held by an 
individual or entity with an equity and/or debt interest in an 
applicant shall be attributed to that auction applicant for purposes of 
determining its eligibility for the New Entrant Bidding Credit, if the 
equity and debt interests, in the aggregate, exceed 33 percent of the 
total asset value of the applicant, even if such an interest is non-
voting.
    46. Generally, media interests will be attributable for purposes of 
the New Entrant Bidding Credit to the same extent that such other media 
interests are considered attributable for purposes of the broadcast 
multiple ownership rules. However, attributable interests held by a 
winning bidder in existing low power television, television translator 
or FM translator facilities will not be counted among the winning 
bidder's other mass media interests in determining its eligibility for 
a New Entrant Bidding Credit. A medium of mass communications is 
defined in 47 CFR 73.5008(b). Full service noncommercial educational 
stations, on both reserved and non-reserved channels, are included 
among media of mass communications as defined in 47 CFR 73.5008(b).

B. Application Requirements

    47. In addition to the ownership information required pursuant to 
47 CFR 1.2105 and 1.2112, applicants are required to establish on their 
short-form applications that they satisfy the eligibility requirements 
to qualify for a New Entrant Bidding Credit. In those cases where a New 
Entrant Bidding Credit is being sought, a certification under penalty 
of perjury must be provided in completing the applicant's short-form 
application. An applicant claiming that it qualifies for a 35 percent 
new entrant bidding credit must certify that neither it nor any of its 
attributable interest holders have any attributable interests in any 
other media of mass communications. An applicant claiming that it 
qualifies for a 25 percent new entrant bidding credit must certify that 
neither it nor any of its attributable interest holders have any 
attributable interests in more than three media of mass communications, 
and must identify and describe such media of mass communications.
i. Bidding Credits
    48. Applicants that qualify for the New Entrant Bidding Credit, as 
specified in the applicable rule, are eligible for a bidding credit 
that represents the amount by which a bidder's winning bid is 
discounted. The size of a New Entrant Bidding Credit depends on the 
number of ownership interests in other media of mass communications 
that are attributable to the bidder-entity and its attributable 
interest-holders. A 35 percent bidding credit will be given to a 
winning bidder if it, and/or any individual or entity with an 
attributable interest in the winning bidder, has no attributable 
interest in any other media of mass communications, as defined in 47 
CFR

[[Page 76842]]

73.5008. A 25 percent bidding credit will be given to a winning bidder 
if it, and/or any individual or entity with an attributable interest in 
the winning bidder, has an attributable interest in no more than three 
mass media facilities, as defined in 47 CFR 73.5008. No bidding credit 
will be given if any of the commonly owned mass media facilities serve 
the same area as the proposed broadcast station, as defined in 47 CFR 
73.5007(b), or if the winning bidder, and/or any individual or entity 
with an attributable interest in the winning bidder, has attributable 
interests in more than three mass media facilities.
    49. Bidding credits are not cumulative; qualifying applicants 
receive either the 25 percent or the 35 percent bidding credit, but not 
both. Attributable interests are defined in 47 CFR 73.3555 and Note 2 
of that section.
ii. Unjust Enrichment
    50. Applicants should note that unjust enrichment provisions apply 
to a winning bidder that utilizes a bidding credit and subsequently 
seeks to assign or transfer control of its license or construction 
permit to an entity not qualifying for the same level of bidding 
credit.

C. Permit Selection

    51. There is no opportunity to change construction permit selection 
after the short-form filing deadline. It is critically important that 
each applicant confirms its construction permit selection because the 
FCC Auction System will not accept bids on construction permits that an 
applicant has not selected on its short-form application. In addition, 
prospective applicants should note that participation in competitive 
bidding for a construction permit for station TV-NTS011-51 (closed 
permit) will be limited to those applicants identified under the closed 
construction permit in Attachment A of the Auction No. 64 Procedures 
Public Notice, provided such parties submit an acceptable short-form 
application pursuant to the Commission's rules and procedures described 
in the Auction No. 64 Procedures Public Notice.

D. Consortia and Joint Bidding Arrangements

    52. Applicants will be required to indicate on their applications 
whether they have 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 construction permits on which they will 
or will not bid. Applicants also will be required to identify on their 
short-form applications any parties with whom they have entered into 
any consortium arrangements, joint ventures, partnerships or other 
agreements or understandings that relate in any way to the construction 
permits being auctioned, including any agreements relating to post-
auction market structure. If an applicant has had discussions, but has 
not reached a joint bidding agreement by the short-form application 
filing deadline, it would not include the names of parties to the 
discussions on its applications and may not continue such discussions 
with applicants for the same construction permit after the deadline.
    53. A party holding a non-controlling, 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 construction permits in the same market 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 
anti-collusion rules do not prohibit non-auction related business 
negotiations among auction applicants, applicants are reminded that 
certain discussions or exchanges could touch upon impermissible subject 
matters because they may convey pricing information and bidding 
strategies. Such subject areas include, but are not limited to, issues 
such as management, sales, local marketing agreements, rebroadcast 
agreements, and other transactional agreements.

E. Ownership Disclosure Requirements

    54. The Commission specified in the Broadcast Competitive Bidding 
First Report and Order that, for purposes of determining eligibility to 
participate in a broadcast auction, the uniform Part 1 ownership 
disclosure standards would apply. Therefore, all applicants must comply 
with the uniform Part 1 ownership disclosure standards and provide 
information required by 47 CFR 1.2105 and 1.2112. Specifically, in 
completing the short-form application, applicants will be required to 
fully disclose information on the real party or parties-in-interest and 
ownership structure of the bidding entity. The ownership disclosure 
standards for the short-form application are prescribed in 47 CFR 
1.2105 and 1.2112. Each applicant is responsible for information 
submitted in its short-form application being complete and accurate.
    55. To simplify filling out its short-form application, an 
applicant's most current ownership information on file with the 
Commission in an electronic format compatible with the short-form 
application, such as information submitted in an on-line FCC Form 602 
in connection with wireless services or in a short-form application 
filed for a previous auction, will be entered automatically into the 
applicant's short-form application for Auction No. 64. An applicant 
should review carefully any information automatically entered to 
confirm that it is complete and accurate as of the deadline for filing 
the short-form application. Applicants can update any information that 
needs to be changed directly in the short-form application.

F. Provisions Regarding Former and Current Defaulters

    56. Each applicant in Auction No. 64 must state under penalty of 
perjury on its short-form application whether or not the applicant, its 
affiliates, its controlling interests, or any affiliate of its 
controlling interests, have ever been in default on any Commission 
construction permit or license or have ever been delinquent on any non-
tax debt owed to any Federal agency. In addition, each applicant must 
certify under penalty of perjury on its short-form application that the 
applicant, its affiliates, its controlling interests, and the 
affiliates of its controlling interests, as of the filing deadline for 
applications to participate in a specific auction, are not in default 
on any payment for a Commission construction permit or license 
(including a down payment) and that they are not delinquent on any non-
tax debt owed to any Federal agency. Affiliates and controlling 
interests are defined in 47 CFR 1.2110. Prospective applicants 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.
    57. Former defaulters--i.e., applicants, including any of its 
affiliates, any of its controlling interests, or any of the affiliates 
of its controlling interests, that in the past have defaulted on any 
Commission construction permit or license or been delinquent on any 
non-tax debt owed to any Federal agency, but that have since remedied 
all such defaults and cured all of their

[[Page 76843]]

outstanding non-tax delinquencies--are eligible to bid in Auction No. 
64, provided that they are otherwise qualified. However, former 
defaulters are required pursuant to 47 CFR 1.2106(a) to pay upfront 
payments that are fifty percent more than the normal upfront payment 
amounts.
    58. In contrast, an applicant is not eligible to participate in 
competitive bidding in Auction No. 64 if the applicant, any of its 
affiliates, any of its controlling interests, or any of the affiliates 
of its controlling interests, is in default on any payment for any 
Commission construction permit or license (including a down payment) or 
is delinquent on any non-tax debt owed to any Federal agency as of the 
filing deadline for applications to participate in this auction.
    59. Applicants are encouraged to review the Wireless 
Telecommunications Bureau's previous guidance on default and 
delinquency disclosure requirements in the context of the auction 
short-form application process. For example, it has been determined 
that to the extent that Commission rules permit late payment of 
regulatory or application fees accompanied by late fees, such debts 
will become delinquent for purposes of 47 CFR 1.2105(a) and 1.2106(a) 
only after the expiration of a final payment deadline. Therefore, with 
respect to regulatory or application fees, the sanctions 47 CFR 
1.2105(a) and 1.2106(a) impose with respect to competitive bidding are 
limited to circumstances in which the relevant party has not complied 
with a final Commission payment deadline.
    60. The Commission considers outstanding debts owed to the United 
States Government, in any amount, to be a serious matter. The 
Commission adopted rules, including a provision referred to as the red 
light rule, that implement the Commission's obligations under the Debt 
Collection Improvement Act of 1996, which governs the collection of 
claims owed to the United States. Under the red light rule, the 
Commission will not process applications and other requests for 
benefits filed by parties that have outstanding debts owed to the 
Commission. In the same rulemaking order, the Commission explicitly 
declared, however, that the Commission's competitive bidding rules are 
not affected by the red light rule. As a consequence, the Commission's 
adoption of the red light rule does not alter the applicability of any 
of the Commission's competitive bidding rules, including the provisions 
and certifications of 47 CFR 1.2105 and 1.2106, with regard to current 
and former defaults or delinquencies. Applicants are reminded, however, 
that the Commission's Red Light Display System, which provides 
information regarding debts owed to the Commission, may not be 
determinative of an auction applicant's ability to comply with the 
default and delinquency disclosure requirements of 47 CFR 1.2105. Thus, 
while the red light rule may ultimately prevent the processing of long-
form applications by auction winners, an auction applicant's red light 
status is not necessarily determinative of its eligibility to 
participate in this auction or to its upfront payment obligation.
    61. Prospective applicants in Auction No. 64 should note that any 
long-form applications filed after the close of competitive bidding 
will be reviewed for compliance with the Commission's red light rule, 
and such review may result in the dismissal of a winning bidder's long-
form application.

G. Other Information

    62. Applicants owned by minorities or women, as defined in 47 CFR 
1.2110(c)(2), may identify themselves in filling out their short-form 
applications 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.

H. Minor Modifications to Short-Form Applications (FCC Forms 175)

    63. Following the deadline for filing short-form applications on 
January 20, 2006, applicants in Auction No. 64 are permitted to make 
only minor changes to their applications. As explained in 47 CFR 
1.2105, applicants are not permitted to make major modifications to 
their applications (e.g., change their construction permit selections, 
change control of the applicant, increase a previously claimed bidding 
credit, or change their self-identification as a noncommercial 
educational entity). Permissible minor changes include, for example, 
deletion and addition of authorized bidders (to a maximum of three) and 
revision of addresses and telephone numbers of the applicants and their 
contact persons.
    64. Any application amendment and related statements of fact must 
be certified by: (1) The applicant, if the applicant is an individual, 
(2) one of the partners if the applicant is a partnership, (3) by an 
officer, director, or duly authorized employee, if the applicant is a 
corporation, (4) by a member who is an officer, if the applicant is an 
unincorporated association, (5) by the trustee if the applicant is an 
amateur radio service club, or (6) a duly elected or appointed official 
who is authorized to do so under the laws of the applicable 
jurisdiction, if the applicant is a governmental entity.
    65. An applicant must make permissible minor changes to its short-
form application, as defined by 47 CFR 1.2105(b), on-line. Applicants 
must click on the SUBMIT button in the FCC Auction System for the 
changes to be submitted and considered by the Commission. After the 
revised application has been submitted, a confirmation page will be 
displayed that states the submission time and date, along with a unique 
file number.
    66. In addition, applicants must submit a letter, briefly 
summarizing the changes by electronic mail to the attention of Margaret 
Wiener, Chief, Auctions and Spectrum Access Division, at the following 
address: auction64@fcc.gov. The electronic mail summarizing the changes 
must include a subject or caption referring to Auction No. 64 and the 
name of the applicant.

I. Maintaining the Accuracy of Short-Form Application Information

    67. Each applicant must maintain the accuracy and completeness of 
information furnished in its pending application and notify the 
Commission within 30 days of any substantial change that may be of 
decisional significance to that application as specified in 47 CFR 
1.65. Changes that cause a loss of or reduction in eligibility for a 
new entrant bidding credit must be reported immediately. For example, 
if ownership changes result in the attribution of new interest holders 
that affect the applicant's qualifications for a new entrant bidding 
credit, such information must be clearly stated in the applicant's 
notification. If an amendment reporting substantial changes is a major 
amendment as defined by 47 CFR 1.2105, the major amendment will not be 
accepted and may result in the dismissal of the short-form application.
    68. Applicants must report 47 CFR 1.65 modifications to their FCC 
Form 175 by electronic mail and submit a letter briefly summarizing the 
changes to the attention of Margaret Wiener, Chief, Auctions and 
Spectrum Access Division, at the following address: auction64@fcc.gov. 
The electronic mail summarizing the changes must include a subject or 
caption referring to Auction No. 64 and the name of the applicant.

[[Page 76844]]

III. Pre-Auction Procedures

A. Auction Seminar--January 11, 2006

    69. On Wednesday, January 11, 2006, the FCC will sponsor a seminar 
for parties interested in participating in Auction No. 64 at the 
Federal Communications Commission headquarters, located at 445 12th 
Street, SW., Washington, DC. The seminar will provide attendees with 
information about pre-auction procedures, completing the FCC Form 175, 
auction conduct, the FCC Auction System, auction rules, and the full 
power television broadcast service rules. The seminar will also provide 
an opportunity for prospective bidders to ask questions of FCC staff.
    70. To register, complete the registration form, Attachment B of 
the Auction No. 64 Procedures Public Notice, and submit it by Monday, 
January 9, 2006. Registrations are accepted on a first-come, first-
served basis. The seminar is free of charge.
    71. For individuals who are unable to attend, an Audio/Video of 
this seminar will be available via Webcast from the FCC's Auction 64 
Web page at https://wireless.fcc.gov/auctions/64/. Select the Auction 
Seminar link.

B. Short-Form Application (FCC Form 175)--Due Before 6 p.m. ET on 
January 20, 2006

    72. In order to be eligible to bid in this auction, applicants must 
first submit an FCC Form 175 application electronically via the FCC 
Auction System. This application must be submitted electronically and 
received at the Commission prior to 6 p.m. ET on January 20, 2006. Late 
applications will not be accepted. There is no application fee required 
when filing FCC Form 175. However, to be eligible to bid, an applicant 
must submit an upfront payment.
    73. Applications generally may be filed at any time beginning at 
noon ET on January 11, 2006, until 6 p.m. ET on January 20, 2006. 
Applicants are strongly encouraged to file early and 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 20, 2006.
    74. Applicants must always click on the SUBMIT button on the 
Certify and Submit screen of the electronic form to successfully submit 
their FCC Forms 175 or modifications. Any form that is not submitted 
will not be reviewed by the FCC. Information about accessing, 
completing, and viewing the FCC Form 175 is included in Attachment C of 
the Auction No. 64 Procedures Public Notice.

C. Application Processing and Minor Corrections

    75. 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: (1) Those applications accepted for 
filing; (2) those applications rejected; and (3) those applications 
which have minor defects that may be corrected, and the deadline for 
resubmitting such corrected applications.
    76. Non-mutually exclusive applications will be listed in a 
subsequent public notice to be released by the Bureaus. Such 
applications will not proceed to auction, but will proceed in 
accordance with instructions set forth in the subsequent public notice. 
All mutually exclusive applications will be considered under the 
relevant procedures for conflict resolution. Mutually exclusive 
commercial applications will proceed to auction. However, any 
applications for non-commercial educational full power television 
stations on non-reserved spectrum that are mutually exclusive with any 
applications specifying commercial facilities will be returned as 
unacceptable for filing pursuant to 47 CFR 73.5002(b).
    77. As described more fully in the Commission's rules, after the 
short-form filing deadline on January 20, 2006, 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 construction permit selections, change control of 
the applicant, increase a previously claimed bidding credit, or change 
their self-identification as non-commercial educational (NCE)).

D. Upfront Payments--Due February 17, 2006

    78. 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 sent by facsimile to Mellon Bank in Pittsburgh, PA. All upfront 
payments must be received in the proper account at Mellon Bank before 6 
p.m. ET on February 17, 2006.
i. Making Auction Payments by Wire Transfer
    79. Wire transfer payments must be received before 6 p.m. ET on 
February 17, 2006. 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. The specific information needed to make the 
required wire transfer payment is provided in the Auction No. 64 
Procedures Public Notice.
    80. At least one hour before placing the order for the wire 
transfer (but on the same business day), applicants must send by 
facsimile a completed FCC Form 159 (Revised 2/03) to Mellon Bank at 
(412) 209-6045. On the cover sheet of the facsimile, write ``Wire 
Transfer--Auction Payment for Auction No. 64.'' In order to meet the 
Commission's upfront payment deadline, an applicant's payment must be 
credited to the Commission's account before the deadline. Applicants 
are responsible for obtaining confirmation from their financial 
institution that Mellon Bank has timely received their upfront payment 
and deposited it in the proper account.
    81. All payments must be made in U.S. dollars and by wire transfer. 
Upfront payments for Auction No. 64 go to a lockbox number different 
from the lockboxes used in previous FCC auctions, and different from 
the lockbox number to be used for post-auction payments. Failure to 
deliver the upfront payment by the specified deadline on February 17, 
2006, will result in dismissal of the application and disqualification 
from participation in the auction.
ii. FCC Form 159
    82. A completed FCC Remittance Advice Form (FCC Form 159) must be 
sent by facsimile to Mellon Bank to accompany each upfront payment. 
Proper completion of the FCC Form 159 is critical to ensuring correct 
crediting of upfront payments. Detailed instructions for completion of 
FCC Form 159 are included in Attachment D of the Auction No. 64 
Procedures Public Notice. An electronic pre-filled version of the FCC 
Form 159 is available after submitting the FCC Form 175. Payors using a 
pre-filled FCC Form 159 are responsible for ensuring that all of the 
information on the form, including payment amounts, is accurate. The 
FCC Form 159 can be completed

[[Page 76845]]

electronically, but must be filed with Mellon Bank via facsimile.
iii. Amount of Upfront Payment
    83. In the Auction No. 64 Comment Public Notice, the Bureaus 
proposed that the amount of the upfront payment would determine a 
bidder's initial bidding eligibility, the maximum number of bidding 
units on which a bidder may place bids. In order to bid on a 
construction permit, an otherwise qualified bidder that applied for 
that construction permit on its FCC Form 175, must have a current 
eligibility level that meets or exceeds the number of bidding units 
assigned to that construction permit. At a minimum, therefore, an 
applicant's total upfront payment must be enough to establish 
eligibility to bid on at least one of the construction permits selected 
on its FCC Form 175, or else the applicant will not be eligible to 
participate in the auction. An applicant does not have to make an 
upfront payment to cover all construction permits for which the 
applicant has applied on FCC Form 175, but rather to cover the number 
of bidding units that are associated with construction permits on which 
the bidder wishes to place bids and hold provisionally winning bids at 
any given time. (Provisionally winning bids are bids that would become 
winning bids if the auction were to close after the given round.)
    84. In the Auction No. 64 Comment Public Notice, the Bureaus 
proposed upfront payments for each construction permit. The specific 
upfront payment and bidding units for each construction permit are 
specified in Attachment A of the Auction No. 64 Procedures Public 
Notice.
    85. In calculating its upfront payment amount, an applicant should 
determine the maximum number of bidding units on which it may wish to 
be active (bid or hold provisionally winning bids) in any single round, 
and submit an upfront payment amount covering that number of bidding 
units. In order to make this calculation, an applicant should add 
together the upfront payments for all construction permits on which it 
seeks to be active in any given round. Applicants should check their 
calculations carefully, as there is no provision for increasing a 
bidder's eligibility after the upfront payment deadline. Information 
about an upfront payment calculation, including an example, is provided 
in the Auction No. 64 Procedures Public Notice.
    86. In the Fifth Report and Order, 65 FR 52323 (August 29, 2000), 
the Commission specified that an applicant be required to make upfront 
payments 50 percent greater than the amount set for each construction 
permit or license if the applicant ever has been in default on any 
Commission