Auction of Advanced Wireless Services Licenses Scheduled for June 29, 2006; Notice of Filing Requirements, Minimum Opening Bids, Upfront Payments and Other Procedures for Auction No. 66, 20672-20694 [06-3819]

Agencies

• FEDERAL COMMUNICATIONS COMMISSION

[Federal Register Volume 71, Number 77 (Friday, April 21, 2006)]
[Notices]
[Pages 20672-20694]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-3819]


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FEDERAL COMMUNICATIONS COMMISSION

[AU Docket No. 06-30; Report No. AUC-06-66-B; (Auction No. 66) FCC 06-
47]


Auction of Advanced Wireless Services Licenses Scheduled for June 
29, 2006; Notice of Filing Requirements, Minimum Opening Bids, Upfront 
Payments and Other Procedures for Auction No. 66

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 Advanced Wireless Services licenses in 
the 1710-1755 MHz and 21102155 MHz bands. This document is intended to 
familiarize prospective bidders with the procedures, minimum opening 
bids and reserve price for this auction.

DATES: Auction No. 66 is scheduled to begin on June 29, 2006.

FOR FURTHER INFORMATION CONTACT: For legal questions: Scott Mackoul at 
(202) 418-0660. For general auction questions: Roy Knowles or Lisa 
Stover at (717) 338-2888. For service rules questions: David Hu or John 
Spencer at (202) 418-0200; Beth Fishel at (717) 338-2649.

SUPPLEMENTARY INFORMATION: This is a summary of the Auction No. 66 
Procedures Public Notice released on April 12, 2006. The complete text 
of the Auction No. 66 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 a.m. on Friday at the FCC Reference Information Center, 
Portals II, 445 12th Street, SW., Room CY-A257, Washington, DC 20554. 
The Auction No. 66 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 you may contact BCPI at its Web site: 
https://www.BCPIWEB.com. When ordering documents from BCPI please 
provide the appropriate FCC document number, for example, FCC 06-47. 
The Auction No. 66 Procedures Public Notice and related documents are 
also available on the Internet at the Commission's Web site: https://
wireless.fcc.gov/auctions/66/.

I. General Information

A. Introduction

    1. The Federal Communications Commission (FCC or Commission) 
announces the procedures, minimum opening bids, and reserve price for 
the upcoming auction of Advanced Wireless Services licenses in the 
1710-1755 MHz and 2110-2155 MHz bands (AWS-1) scheduled for June 29, 
2006 (Auction No. 66). On January 31, 2006, in accordance with section 
309(j)(3) of the Communications Act of 1934, as amended, the Wireless 
Telecommunications Bureau (Bureau) released a public notice seeking 
comment on a reserve price and minimum opening bid amounts and the 
procedures to be used in Auction No. 66. Interested parties submitted 
54 comments and 16 reply comments in response to the Auction No. 66 
Comment Public Notice, 71 FR 6486, February 8, 2006, as well as a 
number of ex parte or late-filed submissions.
    2. In the Auction No. 66 Comment Public Notice, the Bureau proposed 
to include all 1,122 AWS-1 licenses in a single auction using the 
Commission's standard simultaneous multiple-round (SMR) auction format. 
The Bureau sought comment on the feasibility and desirability of 
allocating the AWS-1 licenses among two auctions, run concurrently, 
with one of the auctions using the standard SMR format and the other 
using the Commission's package bidding format (SMR-PB). Based on the 
record and the particular circumstances of the auction of AWS-1 
licenses, the Commission, will include all 1,122 AWS-1 licenses in a 
single auction using the Commission's standard SMR format, as proposed. 
Package bidding will not be used in Auction No. 66.
    3. The Bureau also proposed in the Auction No. 66 Comment Public 
Notice to withhold certain information on bidder interests, bids and 
bidder identities that typically has been revealed prior to and during 
past Commission auctions. The proposal was made in response to analysis 
suggesting

[[Page 20673]]

that under certain circumstances the competitiveness and economic 
efficiency of an SMR auction may be enhanced if such information is 
withheld until after the close of the auction.
    4. Taking into account concerns raised in the record, the 
Commission has decided to modify its proposal. First, consistent with a 
suggested compromise between the proposal and the Commission's past 
practice that was the subject of extensive comment in the record, the 
Commission will withhold certain information unless it appears that the 
auction will be sufficiently competitive that any anti-competitive 
behavior addressed by the original proposal would be unlikely to be 
successful. To gauge the likely level of competition in this upcoming 
auction, the Commission will evaluate the level of prospective bidders' 
bidding eligibility. Specifically, if all the bidders' bidding 
eligibility, measured in bidding units (subject to a cap on the amount 
of any one bidder's eligibility) divided by all licenses in the 
auction, measured in bidding units is equal to or greater than three, 
the Commission believes the auction will be sufficiently competitive. 
For the purposes of determining the modified eligibility ratio, the 
bidding eligibility of any one bidder may be no more than 50 percent of 
the bidding units of all licenses in the auction. If the modified 
eligibility ratio is three or greater, the likely level of competition 
should be sufficient to make anti-competitive outcomes difficult to 
sustain. Second, if the modified eligibility ratio is less than three 
and, therefore, certain information is withheld, the Commission will 
follow the original proposal with two changes: (1) The Commission will 
release each bidder's eligibility and upfront payment made prior to the 
start of the auction; and (2) the Commission will release all gross 
bids for each license (including the losing bids) after each round, but 
not bidder identities. The Commission believes this compromise provides 
bidders with additional information regarding license valuations 
without compromising the proposal's goal of reducing the potential for 
anti-competitive outcomes.
    5. Pursuant to these procedures, license selection information will 
be withheld, at least initially. Therefore, to enable applicants to 
comply with the Commission's anti-collusion rules, each applicant with 
a short-form application to participate in a pending auction will 
receive a letter that lists the applicants in Auction No. 66 that have 
applied for licenses in any of the same geographic areas as the 
applicant, once the Commission has conducted its initial review of 
applications to participate in Auction No. 66.
    6. The Auction No. 66 Comment Public Notice proposed an aggregate 
reserve price of $1,029,534,343.20 for all AWS-1 licenses in order to 
implement a Congressional mandate to recover estimated relocation costs 
for government incumbent operators in the lower (1710-1755 MHz) AWS-1 
spectrum band. Under the Commercial Spectrum Enhancement Act (CSEA), 
the Commission cannot conclude any auction of statutorily-defined 
eligible frequencies if the total cash proceeds attributable to such 
spectrum are less than 110 percent of the total estimated relocation 
costs of eligible federal entities assigned to the frequencies. The 
lower half of the frequencies covered by AWS-1 licenses, 1710-1755 MHz, 
are eligible frequencies. Accordingly, the Commission will cancel the 
auction if the winning bids net of applicable discounts at the end of 
bidding that are attributable to such spectrum are less than 110 
percent of the total estimated relocation costs, or $1,029,534,343.20. 
Given that one-half of the frequencies authorized for use by each 
license are CSEA eligible frequencies, one-half of each winning bid, 
net of any applicable bidding credit discounts at the end of bidding 
(e.g., exclusive of tribal land bidding credits), will be counted 
toward meeting this reserve price. Therefore, the winning bids (net of 
bidding credits) in the auction must total at least approximately $2.06 
billion in order for the Commission to conclude the auction and award 
the licenses.
i. Background of Proceeding
    7. Growth in demand for mobile wireless services, coupled with the 
rise of the Internet and greater broadband availability, have increased 
the need for additional spectrum and advanced technologies capable of 
providing advanced wireless services, including wireless Internet 
access and other high-speed information and entertainment services. 
Enhancements to current wireless network technologies, as well as the 
development of new technologies, are continuing to improve and expand 
the deployment of wireless broadband.
    8. In order to facilitate the rapid deployment of broadband 
technologies, the Commission has allocated spectrum to meet the demand 
for advanced wireless services. In the Second Report and Order in ET 
Docket No. 00-258, 66 FR 47618, September 13, 2001, the Commission 
allocated the 1710-1755, 2110-2150 and 2150-2155 MHz bands for AWS-1 
and combined these latter two bands into a single 45-megahertz 
allocation (i.e., 2110-2155 MHz). The Commission subsequently adopted 
service rules for AWS in these bands, including application, licensing, 
operating and technical rules.
    9. Making this spectrum available requires relocating incumbent 
operations, both Federal Government (Government) and non-Federal 
Government (non-Government). Relocation of Government operations is 
subject to the CSEA. For non-Government operations, the Commission's 
Emerging Technologies proceeding adopted a relocation policy designed 
to allow early entry for new technology providers into reallocated 
spectrum by allowing providers of new services to negotiate financial 
arrangements for reaccommodation of incumbent licensees.
ii. Licenses To Be Auctioned
    10. Auction No. 66 will offer 1,122 licenses: 36 Regional Economic 
Area Grouping (REAG) licenses, 352 Economic Area (EA) licenses, and 734 
Cellular Market Area (CMA) licenses. A complete list of the AWS-1 
licenses available in Auction No. 66 can be found in Attachment A of 
Auction No. 66 Procedures Public Notice.

B. Rules and Disclaimers

i. Relevant Authority
    11. Prospective applicants must familiarize themselves thoroughly 
with the Commission's general competitive bidding rules set forth in 
Title 47, part 1, of the Code of Federal Regulations, including recent 
amendments and clarifications; rules relating to the Advanced Wireless 
Services and emerging technologies contained in Title 47, parts 27 and 
101, of the Code of Federal Regulations; and rules relating to 
applications, practice and procedure contained in Title 47, part 1, of 
the Code of Federal Regulations. Prospective applicants must also be 
thoroughly familiar with the procedures, terms and conditions contained 
in the Auction No. 66 Procedures Public Notice and the Commission's 
decisions in proceedings regarding competitive bidding procedures, 
application requirements, and obligations of Commission licensees.
    12. 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 its public notices at any time, 
and will issue public notices to convey any new or supplemental 
information to applicants. It is the responsibility of all

[[Page 20674]]

applicants to remain current with all Commission rules and with all 
public notices pertaining to this auction.
ii. Prohibition of Collusion; Compliance With Antitrust Laws
    13. To ensure the competitiveness of the auction process, Sec.  
1.2105(c) of the Commission's rules prohibit applicants competing for 
licenses in any of the same geographic license areas from communicating 
with each other about bids, bidding strategies, or settlements unless 
such applicants have identified each other on their short-form 
applications (FCC Forms 175) as parties with whom they have entered 
into agreements pursuant to Sec.  1.2105(a)(2)(viii). In Auction No. 
66, the rule would apply to any applicants bidding for the same CMA, 
EA, or REAG. The rule would also apply to applicants bidding for 
licenses in overlapping CMAs, EAs, and REAGs. In addition, the rule 
would preclude applicants that apply to bid for all markets from 
communicating with all other applicants. Applicants that have applied 
for the same markets (unless they have identified each other on their 
FCC Form 175 applications as parties with whom they have entered into 
agreements under Sec.  1.2105(a)(2)(viii)) must affirmatively avoid all 
communications with or disclosures to each other that affect or have 
the potential to affect bids or bidding strategy, which may include 
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. This prohibition 
applies to all applicants regardless of whether such applicants become 
qualified bidders or actually bid.
    14. For purposes of this prohibition, Sec.  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, all 
controlling interests of that entity, as well as 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.
    15. Applicants for licenses for any of the same geographic license 
areas must not communicate directly or 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 applicants, and conveys information concerning 
the substance of bids or bidding strategies between such applicants. 
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. Auction participants are hereby placed on 
notice that public disclosure of information on bidder interests, bids 
and bidder identities that typically has been revealed prior to and 
during past Commission auctions may violate the anti-collusion rule. 
Bidders should use caution in their dealings with other parties, such 
as members of the press, financial analysts, or others who might become 
a conduit for the communication of prohibited bidding information.
    16. The Commission's rules do not prohibit applicants from entering 
into otherwise lawful 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, each party to the agreement must identify the other party or 
parties to the agreement on its short-form application under Sec.  
1.2105(c), even if the agreement has not been reduced to writing. If 
the parties have not agreed in principle by the short-form filing 
deadline, they should not include the names of parties to discussions 
on their applications, and they may not continue negotiations, 
discussions or communications with any other applicants after the 
short-form filing deadline. By electronically submitting its short-form 
application, each applicant certifies its compliance with Sec.  
1.2105(c). Any applicant found to have violated the anti-collusion rule 
may be subject to sanctions.
    17. By electronically submitting its short-form application, each 
applicant certified its compliance with Sec.  1.2105(c). However, the 
Commission cautions that merely filing a certifying statement as part 
of an application will not outweigh specific evidence that collusive 
behavior has occurred, nor will it preclude the initiation of an 
investigation when warranted. Any applicant found to have violated the 
anti-collusion rule may be subject to sanctions.
    18. Applicants are also reminded that, regardless of compliance 
with the Commission's rules, they remain 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 insulate a party from 
enforcement of the antitrust laws. To the extent the Commission becomes 
aware of specific allegations that may give rise to violations of the 
federal antitrust laws the Commission may refer such allegations to the 
United States Department of Justice for investigation. 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, among other sanctions.
    19. Section 1.65 of the Commission's rules requires an applicant to 
maintain the accuracy and completeness of information furnished in its 
pending application and to notify the Commission within 30 days of any 
substantial change that may be of decisional significance to that 
application. Applicants are therefore required by Sec.  1.65 to report 
to the Commission any communications they have made to or received from 
another applicant after the short-form filing deadline that affect or 
have the potential to affect bids or bidding strategy unless such 
communications are made to or received from parties to agreements 
identified under Sec.  1.2105(a)(2)(viii).
    20. Applicants that are winning bidders will be required 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.
    21. A summary listing of documents issued by the Commission and the 
Bureau addressing the application of the anti-collusion rule may be 
found in Attachment G of the Auction No. 66 Procedures Public Notice.
iii. Incumbency Issues
    22. The AWS-1 bands are now being used for a variety of Government 
and non-Government services. The 1710-1755 MHz band is currently a 
Government band. The 2110-2150 MHz band is used by private (including 
state and local governmental public safety services) and common carrier 
fixed microwave services. The 2150-2155

[[Page 20675]]

MHz band is currently used by the Broadband Radio Service (BRS).
    23. Relocation of Government Incumbents; Spectrum Relocation Fund. 
The 1710-1755 MHz spectrum is covered by a Congressional mandate that 
requires that auction proceeds fund the estimated relocation costs of 
incumbent Federal entities. Specifically, the CSEA established a 
Spectrum Relocation Fund (SRF), to which the cash proceeds attributable 
to eligible frequencies in the AWS-1 license auction will be deposited.
    24. CSEA also prohibits the Commission from concluding any auction 
of eligible frequencies if the total cash proceeds attributable to such 
spectrum are less than 110 percent of the estimated relocation costs 
provided to the Commission by the National Telecommunications and 
Information Administration (NTIA). NTIA has collected estimates of the 
relocation costs for the eligible frequencies in the AWS-1 band. On 
December 27, 2005, pursuant to CSEA, NTIA notified the Commission of 
the estimated relocation costs and timelines for relocation of eligible 
Federal entities assigned to frequencies from 1710 to 1755 MHz. NTIA 
reported that the total estimated relocation costs equal $935,940,312.
    25. Relocation of Non-Government Incumbents. The Commission is in 
the process of determining how to apply the policies adopted in the 
Emerging Technologies proceeding to the relocation of incumbent fixed 
microwave and BRS licensees in the 2110-2150 and 2150-2155 MHz bands, 
respectively. In the Fifth Notice of Proposed Rule Making (AWS Fifth 
Notice) in ET Docket No. 00-258, 70 FR 61752, October 26, 2005, the 
Commission is seeking comment on the specific relocation and cost-
sharing procedures applicable to BRS operations in the 2150-2160/62 MHz 
band, which the Commission recently decided will be relocated to the 
newly restructured 2495-2690 MHz band. In the AWS Fifth Notice, the 
Commission is also seeking comment on cost-sharing obligations and 
procedures associated with relocation obligations for the 2110-2155 MHz 
band. In doing so, the AWS Fifth Notice also referenced an earlier 
request by the Commission for comments on the appropriate procedures 
for apportioning relocation costs among multiple AWS licensees in the 
2110-2150 MHz band. The Commission is also currently considering 
petitions for reconsideration that raise issues concerning the 
conditions under which the 2495-2500 MHz band would be available to BRS 
and the suitability of that spectrum for BRS operations.
iv. Protection of Incumbent Government and Non-Government Operations
    26. AWS licensees must comply with the technical and operational 
rules set forth in 47 CFR 27.50-27.66 and 27.1131-27.1135. The latter 
set of rules describes the procedures AWS licensees must follow to 
protect co-channel and adjacent channel incumbent Government and non-
Government operations from interference.
    27. The 1710-1755 MHz band. According to NTIA, this spectrum is 
used by the Federal Government for both military and non-military 
operations. Sixteen Department of Defense (DOD) facilities in the 
country are classified as protected facilities, and various types of 
systems operate at these locations. AWS licensees must protect systems 
operating at these facilities from interference until such systems are 
relocated to other spectrum. These restrictions shall apply until such 
time as the relocation of the Federal systems has been completed, and 
indefinitely in the case of systems at the Yuma, Arizona, and Cherry 
Point, North Carolina, locations. Furthermore, AWS licensees will be 
required to accept any interference received from operations at the 16 
facilities. Such interference could occur at large distances outside 
the facilities' operating radii due to airborne operations within the 
radii.
    28. The CSEA permits the Commission to grant commercial licenses in 
these bands prior to relocation of Federal government operations and 
the termination of a Federal entity's authorization. Until such time as 
the Government licensees have relocated to other spectrum, or NTIA de-
authorizes an operation pursuant to CSEA, AWS operators shall be 
required to protect non-DOD Government systems operating in the 1710-
1755 and 1755-1761 MHz bands in accordance with the provisions set 
forth in Sec.  27.1134(b) of the Commission's rules.
    29. AWS licensees operating fixed stations in the 1710-1755 MHz 
band, if notified that such stations are causing interference to 
radiosonde receivers operating in the Meteorological Aids Service in 
the 1675'1700 MHz band or meteorological-satellite earth receivers 
operating in the Meteorological-Satellite Service in the 1675-1710 MHz 
band, shall be required to modify the stations' location and/or 
technical parameters as necessary to eliminate the interference.
    30. The 2110-2155 MHz Band. Fixed point-to-point microwave systems 
authorized under part 101 of the Commission's rules will maintain 
primary status in the 2110-2150 MHz band unless and until an AWS or 
other emerging technology licensee requires use of the spectrum. AWS 
licensees are required, prior to initiating operations from any base or 
fixed station, to coordinate their frequency usage with co-channel and 
adjacent channel incumbent part 101 fixed-point-to-point microwave 
licensees operating in the 2110-2150 MHz band. Similarly, BRS 
operations in the 2150-2160/62 MHz band will be relocated to other 
spectrum. Until that occurs, AWS licensees, prior to initiating 
operations from any base or fixed station, must coordinate their 
frequency usage with co-channel and adjacent channel incumbent BRS 
licensees operating in the 2150-2160 MHz band.
    31. AWS licensees operating in the 2110-2155 MHz band must protect 
previously licensed Broadcast Auxiliary Service (BAS) and Cable 
Television Radio Service (CARS) operations in the adjacent 2025-2110 
MHz band. In satisfying this requirement AWS licensees must, before 
constructing and operating any base or fixed station, determine the 
location and licensee of all BAS or CARS stations authorized in their 
area of operation, and coordinate their planned stations with those 
licensees.
    32. The National Aeronautics and Space Administration (NASA) 
operates the Deep Space Network (DSN) in the 2110-2120 MHz band at 
Goldstone, California. NASA will continue its operations of high power 
transmitters (nominal EIRP of 105.5 dBW with EIRP up to 119.5 dBW used 
under emergency conditions) in this band at this location. AWS 
licensees must accept any interference received from the Goldstone DSN 
facility in this band.
a. International Coordination
    33. Operations in the 1710-1755 and 2110-2155 MHz bands must not 
cause harmful interference across the borders with Mexico and Canada. 
Until such time as agreements between the United States, Mexico and 
Canada become effective, the same technical restrictions at the border 
that are adopted for operation between geographic service areas will 
apply, to the extent they are not in violation of current bilateral 
agreements and arrangements. When interim arrangements or agreements 
between the United States, Mexico and Canada are final and become 
effective, licensees in the 1710-1755 and 2110-2155 MHz bands must 
comply with these agreements. In addition, if these agreements are 
modified in the future, licensees in the 1710-1755 and 2110-2155 MHz 
bands must comply with these modifications.

[[Page 20676]]

b. Quiet Zones
    34. Advanced Wireless Services licensees must protect the radio 
quiet zones set forth in the Commission's rules. Licensees are 
cautioned that they must receive the appropriate approvals directly 
from the relevant quiet zone entity prior to operating within the areas 
described in the Commission's rules.
v. Due Diligence
    35. The Commission cautions potential applicants formulating their 
bidding strategies to investigate and consider the extent to which AWS 
frequencies are occupied. Operations in the AWS-1 bands must be 
protected and/or relocated to available frequencies typically in higher 
bands or to other media. These limitations may restrict the ability of 
AWS geographic area licensees to use certain portions of the 
electromagnetic spectrum or provide service to certain areas in their 
geographic license areas. Bidders should become familiar with the 
status of these operations and relocation requirements, and applicable 
Commission rules, orders and any pending proceedings related to the 
service, in order to make reasoned, appropriate decisions about their 
participation in Auction No. 66 and their bidding strategy.
    36. Potential bidders are reminded that they are solely responsible 
for investigating and evaluating all technical and marketplace factors 
that may have a bearing on the value of the AWS-1 licenses 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 licensee 
in the Advanced Wireless Services 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 
license constitute a guarantee of business success. Applicants should 
perform their individual due diligence before proceeding as they would 
with any new business venture.
    37. Potential bidders are strongly encouraged to conduct their own 
research prior to the beginning of bidding in Auction No. 66 in order 
to determine the existence of any pending administrative or judicial 
proceedings that might affect their decision regarding participation in 
the auction. Participants in Auction No. 66 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 license, they will be able to build and operate facilities 
that will fully comply with the Commission's technical and legal 
requirements.
    38. Applicants should also be aware that certain pending and future 
proceedings, including 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 licensees 
or the licenses available in Auction No. 66. In addition, pending and 
future judicial proceedings may relate to particular applicants or 
incumbent licensees, or the licenses available in Auction No. 66. 
Prospective bidders are responsible for assessing the likelihood of the 
various possible outcomes, and considering their potential impact on 
spectrum licenses available in this auction.
    39. Applicants should perform due diligence to identify and 
consider all proceedings that may affect the spectrum licenses being 
auctioned and that could have an impact on the availability of spectrum 
for Auction No. 66. 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 auction.
    40. 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 licenses available in Auction No. 66.
    41. Applicants may obtain information about non-Federal Government 
incumbent licenses that may have an effect on availability of licenses 
in Auction No. 66 through the Commission's licensing databases on the 
World Wide Web.
    42. To further assist potential bidders in determining the scope of 
the new AWS entrants' relocation obligations in the 2150-2155 MHz band, 
the Commission ordered BRS licensees in the 2150-2160/62 MHz band to 
submit information on the locations and operating characteristics of 
BRS systems in that band. Each application will need to be viewed to 
determine if it is a BRS Channel 1, 2/ 2A Notification.
    43. The Commission makes no representations or guarantees regarding 
the accuracy or completeness of information in its databases or any 
third party databases. The Commission's databases may not include all 
information deemed necessary or desirable by an applicant, applicants 
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 its databases.
    44. Potential applicants are strongly encouraged to physically 
inspect any prospective sites located in, or near, the service area for 
which they plan to bid, and also to familiarize themselves with the 
environmental assessment obligations.
vi. Use of Integrated Spectrum Auction System
    45. The Commission will make available a browser-based bidding 
system to allow bidders to participate in Auction No. 66 over the 
Internet using the Commission's Integrated Spectrum Auction System 
(ISAS or FCC Auction System). The Commission makes no warranty 
whatsoever with respect to the FCC Auction System. In no event shall 
the Commission, or any of its officers, employees or agents, be liable 
for any damages whatsoever (including, but not limited to, loss of 
business profits, business interruption, loss of business information, 
or any other loss) arising out of or relating to the existence, 
furnishing, functioning or use of the FCC Auction System that is 
accessible to bidders in connection with this auction. Moreover, no 
obligation or liability will arise out of the Commission's technical, 
programming or other advice or service provided in connection with the 
FCC Auction System.
vii. Bidder Alerts
    46. As is the case with many business investment opportunities, 
some unscrupulous entrepreneurs may attempt to use Auction No. 66 to 
deceive and defraud unsuspecting investors. Information about deceptive 
telemarketing investment schemes is available from the Federal Trade 
Commission (FTC) and from the Securities and Exchange Commission (SEC).
viii. National Environmental Policy Act Requirements
    47. Licensees must comply with the Commission's rules regarding 
implementation of the National

[[Page 20677]]

Environmental Policy Act (NEPA). The construction of a wireless antenna 
facility is a federal action and the licensee must comply with the 
Commission's NEPA rules for each such facility. The Commission's NEPA 
rules require, among other things, that the licensee consult with 
expert agencies having NEPA responsibilities, including the U.S. Fish 
and Wildlife Service, the State Historic Preservation Office, the Army 
Corps of Engineers and the Federal Emergency Management Agency. In 
assessing the effect of facilities construction on historic properties, 
the licensee must follow the provisions of the Nationwide Programmatic 
Agreement Regarding the Section 106 National Historic Preservation Act 
Review Process.

C. Auction Specifics

i. Auction Date
    48. Bidding in Auction No. 66 will begin on Thursday, June 29, 
2006, as announced in the Auction No. 66 Comment Public Notice. The 
initial schedule for bidding will be announced by public notice at 
least one week before the start of the auction.
    49. Several commenters addressed the date on which bidding in 
Auction No. 66 will commence. Generally, commenters expressed support 
for commencing the auction on June 29, 2006. A few commenters, however, 
expressed concern about the start date.
    50. The Commission does not find sufficient cause to delay the 
start of Auction No. 66, and therefore, will commence the competitive 
bidding as scheduled, i.e., on June 29, 2006. The Commission agrees 
with the majority of the parties who commented on this issue that it is 
in the public interest to make AWS spectrum available as soon as it is 
both reasonable and consistent with CSEA. Therefore, the concerns 
raised by some about time needed to prepare for package bidding are 
moot. The Commission has decided to proceed with standard, single SMR 
auction for the AWS-1 licenses.
    51. Unless otherwise announced, bidding on all licenses will be 
conducted on each business day until bidding has stopped on all 
licenses.
ii. Auction Title
    52. Auction No. 66--Advanced Wireless Services (AWS-1)
iii. Bidding Methodology
    53. The bidding methodology for Auction No. 66 will be simultaneous 
multiple round bidding. The Commission will conduct this auction over 
the Internet using the 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
    54. Dates and Deadlines:
    Auction Seminar: April 24, 2006.
    Short-Form Application (FCC Form 175) Filing Window Opens: April 
24, 2006; 12 p.m. ET.
    Short-Form Application (FCC Form 175) Filing Window Deadline: May 
10, 2006; 6 p.m. ET.
    Upfront Payments (via wire transfer): June 1, 2006; 6 p.m. ET.
    Mock Auction: June 26, 2006.
    Auction Begins: June 29, 2006.
v. Requirements for Participation
    55. Those wishing to participate in the auction must: (a) Submit a 
short-form application (FCC Form 175) electronically prior to 6 p.m. 
Eastern Time (ET), May 10, 2006, following the electronic filing 
procedures set forth in Attachment D of the Auction No. 66 Procedures 
Public Notice; (b) submit a sufficient upfront payment and an FCC 
Remittance Advice Form (FCC Form 159) before 6 p.m. ET, June 1, 2006; 
and (c) comply with all provisions outlined in this Public Notice and 
applicable Commission rules.
vi. General Contact Information
    56. See Auction No. 66 Procedures Public Notice for General 
Contract information table.

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

    57. An application to participate in an FCC auction, referred to as 
a short-form application or FCC Form 175, provides information used in 
determining whether the applicant is legally, technically, and 
financially qualified to participate in Commission auctions for 
licenses or permits.
    58. Entities seeking licenses available in Auction No. 66 must file 
a short-form application electronically via the FCC Auction System 
before 6 p.m. ET on May 10, 2006, following the procedures prescribed 
in Attachment D of the Auction No. 66 Procedures Public Notice. 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 submitting 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.
    59. An entity may not submit more than one short-form application 
for a single auction. In the event that a party submits multiple short-
form applications, only one application will be accepted for filing. 
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, that he or she 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. Preferences for Small Businesses and Others

i. Size Standards for Bidding Credits
    60. A bidding credit represents the amount by which a bidder's 
winning bid will be discounted. For Auction No. 66, bidding credits 
will be available to small businesses and very small businesses, and 
consortia thereof, as follows: (1) A bidder with attributed average 
annual gross revenues that exceed $15 million and do not exceed $40 
million for the preceding three years (small business) will receive a 
15 percent discount on its winning bid; (2) a bidder with attributed 
average annual gross revenues that do not exceed $15 million for the 
preceding three years (very small business) will receive a 25 percent 
discount on its winning bid.
    61. Bidding credits are not cumulative; a qualifying applicant 
receives either the 15 percent or 25 percent bidding credit on its 
winning bid, but not both.
    62. Every applicant that claims eligibility for a bidding credit as 
either a small business or a very small business, or a consortium of 
small businesses or very small businesses, will be required to provide 
information regarding revenues attributable to the applicant, its 
affiliates, its controlling interests, and the affiliates of its 
controlling interests on its FCC Form 175 short-form application to 
establish that it satisfies the applicable eligibility requirement. 
Applicants considering claiming eligibility as a designated entity in 
Auction No. 66 should review carefully the recently released CSEA/Part 
1 Designated Entity FNPRM, 71 FR 6992, February 10, 2006. Applicants 
considering claiming eligibility as a designated entity in Auction No. 
66 should monitor further proceedings

[[Page 20678]]

pursuant to the CSEA/Part 1 Designated Entity FNPRM to assure their 
ability to comply with any changes to the designated entity rules that 
the Commission may adopt that are applicable to applicants in Auction 
No. 66.
ii. Tribal Lands Bidding Credit
    63. To encourage the growth of wireless services in federally 
recognized tribal lands the Commission has implemented a tribal land 
bidding credit. The Commission will award pro rata tribal lands bidding 
credits in the event that the sum of all net winning bids at the close 
of bidding, exclusive of tribal lands bidding credits, is not 
sufficient funds both to meet the reserve price and to award all 
eligible applicants full tribal lands bidding credits.
iii. Installment Payments
    64. Installment payment plans will not be available in Auction No. 
66.

B. License Selection

    65. In Auction No. 66, applicants must select the licenses on which 
they want to bid from the Eligible Licenses list. In Auction No. 66, 
FCC Form 175 will include a filtering mechanism that allows an 
applicant to filter the available licenses. The applicant will make 
selections for one or more of the filter criteria and the system will 
produce a list of licenses satisfying the specified criteria. The 
applicant may select all the licenses in the customized list or select 
individual licenses from the list. Applicants also will be able to 
select licenses from one customized list and then create additional 
customized lists to select additional licenses. There will be no 
opportunity to change license selection after the short-form filing 
deadline. It is critically important that an applicant confirm its 
license selections before submitting its short-form application because 
the FCC Auction System will not accept bids on licenses that an 
applicant has not selected on its FCC Form 175.

C. Disclosure of Bidding Arrangements

    66. Applicants will be required to identify in their short-form 
applications all parties with whom they have entered into any 
agreements, arrangements, or understandings of any kind relating to the 
licenses being auctioned, including any agreements relating to post-
auction market structure. Applicants also will be required to certify 
under penalty of perjury in their short-form applications that they 
have not entered and will not enter into any explicit or implicit 
agreements, arrangements or understandings of any kind with any 
parties, other than those identified in the application, regarding the 
amount of their bids, bidding strategies, or the particular licenses on 
which they will or will not bid. 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 application and may not continue such 
discussions with any applicants after the deadline.
    67. After the filing of short-form applications, the Commission's 
rules do not prohibit a party holding a non-controlling, attributable 
interest in one applicant from acquiring an ownership interest in or 
entering into a joint bidding arrangement with other applicants 
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 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. Further, as 
discussed above, compliance with the disclosure requirements of the 
Commission's anti-collusion rule will not insulate a party from 
enforcement of the antitrust laws.

D. Ownership Disclosure Requirements

    68. All applicants must comply with the uniform Part 1 ownership 
disclosure standards and provide information required by Sec. Sec.  
1.2105 and 1.2112 of the Commission's rules. 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 applicant.
    69. Applicants considering claiming eligibility as a designated 
entity in Auction No. 66 should review carefully and monitor the 
recently initiated rulemaking proceeding concerning the Commission's 
designated entity rules. The Commission also sought comment on whether 
to restrict the award of designated entity benefits where an otherwise 
qualified designated entity has a material relationship with a large 
entity that has a significant interest in communications services. The 
Commission stated that it intended any changes adopted in this 
proceeding to apply to AWS licenses to be offered in Auction No. 66. 
Depending upon the outcome of that proceeding, applicants may be 
required to disclose additional ownership information in order to 
comply with any changes to the designated entity rules that the 
Commission may adopt that are applicable to applicants in Auction No. 
66.
    70. Applicants are responsible for ensuring that the information 
submitted in their Form 175 for Auction No. 66 is complete and 
accurate. Accordingly, applicants should carefully review 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 was entered automatically 
and needs to be changed directly in the short-form application.

E. Bidding Credit Revenue Disclosures

    71. To determine which applicants qualify for bidding credits as 
small businesses or very small businesses, the Commission considers the 
gross revenues of the applicant, its affiliates, its controlling 
interests, and the affiliates of its controlling interests. Therefore, 
entities applying to bid as small businesses or very small businesses 
(or consortia of small businesses or very small businesses) will be 
required to disclose on their FCC Form 175 short-form applications the 
gross revenues of each of the following for the preceding three years: 
(1) The applicant, (2) its affiliates, (3) its controlling interests, 
and (4) the affiliates of its controlling interests. In order to comply 
with the Commission's disclosure requirements for bidding credit 
eligibility, an applicant must provide separately for itself, its 
affiliates, its controlling interests, and the affiliates of its 
controlling interests, the gross revenues for each of the preceding 
three years. If the applicant is applying as a consortium of small 
businesses or very small businesses, this information must be provided 
for each consortium member.
    72. Applicants considering claiming eligibility as a designated 
entity in Auction No. 66 should review carefully the recently released 
CSEA/Part 1 Designated Entity FNPRM. Depending upon the outcome of that 
proceeding, applicants may be required to disclose additional 
information regarding gross revenues of related parties in order to 
comply with any changes to the designated entity rules that the 
Commission may adopt that are

[[Page 20679]]

applicable to applicants in Auction No. 66.
    73. Controlling interests of an applicant include individuals and 
entities with either de facto or de jure control of the applicant. 
Typically, ownership of at least 50.1 percent of an entity's voting 
stock evidences de jure control. De facto control is determined on a 
case-by-case basis.
    74. Officers and directors of an applicant are also considered to 
have controlling interest in the applicant. Once the principals or 
entities with a controlling interest are determined, only the revenues 
of those principals or entities, the affiliates of those principals or 
entities, and the applicant and its affiliates will be counted in 
determining small business eligibility.
    75. Each member of a consortium of small or very small businesses 
that applies to participate in Auction No. 66 must individually meet 
the definition of small business or very small business adopted by the 
Commission for the Advanced Wireless Services. Each consortium member 
must disclose its gross revenues along with those of its affiliates, 
its controlling interests, and the affiliates of its controlling 
interests. Although the gross revenues of the consortium members will 
not be aggregated for purposes of determining the consortium's 
eligibility as a small business or very small business, this 
information must be provided to ensure that each individual consortium 
member qualifies for any bidding credit awarded to the consortium.

F. Provisions Regarding Former and Current Defaulters

    76. Each applicant must state under penalty of perjury on its 
short-form application whether or not the applicant, its affiliates, 
its controlling interests, and the affiliates of its controlling 
interests, as defined by Sec.  1.2110, have ever been in default on any 
Commission licenses 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 as of the 
short-form filing deadline, the applicant, its affiliates, its 
controlling interests, and the affiliates of its controlling interests, 
as defined by Sec.  1.2110, are not in default on any payment for 
Commission licenses (including down payments) and that they are not 
delinquent on any non-tax debt owed to any Federal agency. 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.
    77. Former defaulters, i.e., applicants, including any of their 
affiliates, any of their controlling interests, or any of the 
affiliates of its controlling interests, that in the past have 
defaulted on any Commission licenses 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 outstanding non-tax delinquencies--are 
eligible to bid in Auction No. 66, provided that they are otherwise 
qualified.
    78. Current defaulters, i.e., applicants, including any of their 
affiliates, any of their controlling interests, or any of the 
affiliates of their controlling interests, that are in default on any 
payment for any Commission licenses (including down payments) or are 
delinquent on any non-tax debt owed to any Federal agency as of the 
filing deadline for applications to participate in this auction--are 
not eligible to bid in Auction No. 66.
    79. Applicants are encouraged to review the Commission's previous 
guidance on default and delinquency disclosure requirements in the 
context of the short-form application process. Therefore, with respect 
to regulatory or application fees, the provisions of Sec. Sec.  
1.2105(a) and 1.2106(a) regarding default and delinquency in connection 
with competitive bidding are limited to circumstances in which the 
relevant party has not complied with a final Commission payment 
deadline.
    80. 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 Sec. Sec.  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 Sec.  1.2105. Thus, 
while the red light rule ultimately may 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 of its upfront payment obligation.
    81. Prospective applicants in Auction No. 66 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

    82. Applicants owned by member of minority groups and/or women, as 
defined in Sec.  1.2110(c)(3), 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 Form 175)

    83. After the deadline for filing short-form applications (FCC 
Forms 175) at 6 p.m. ET on May 10, 2006, applicants are permitted to 
make only minor changes to their applications. Applicants are not 
permitted to make major modifications to their applications (e.g., 
change their license selections, change control of the applicant, or 
claim eligibility for a higher bidding credit).
    84. 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) 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) the trustee if the applicant is an 
amateur radio service club, or (6) a duly elected or appointed official 
who is authorized to make such certifications under the laws of the 
applicable jurisdiction, if the applicant is a governmental entity.
    85. An applicant must make permissible minor changes to its short-
form application as such changes are

[[Page 20680]]

defined by Sec.  1.2105(b), on-line. In addition, in the event that 
changes cannot be made immediately in ISAS for any reason, an applicant 
should submit a letter briefly summarizing the changes and subsequently 
update their short-form applications in ISAS as soon as possible. Any 
letter describing changes to applicant's short-form application should 
be submitted by electronic mail to the following address: 
auction66@fcc.gov.
    86. Applicants should not submit application-specific material 
through the Commission's Electronic Comment Filing System (ECFS), which 
was used for submitting comments regarding Auction No. 66 procedures.

I. Maintaining Current Information in Short-Form Applications (FCC Form 
175)

    87. Section 1.65 of the Commission's rules requires an applicant to 
maintain the accuracy and completeness of information furnished in its 
pending application and to notify the Commission within 30 days of any 
substantial change that may be of decisional significance to that 
application. Changes that cause a loss of or reduction in eligibility 
for a bidding credit must be reported immediately. 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.
    88. In the event that the new rules regarding applicants and 
applications become effective after the deadline for filing short-form 
applications (FCC Form 175), applicants may be required to submit 
additional information not required in the initial form. In this 
regard, applicants considering claiming eligibility as a designated 
entity in Auction No. 66 should review carefully the recently released 
CSEA/Part 1 Designated Entity FNPRM. The Commission stated in the CSEA/
Part 1 Designated Entity FNPRM that it intends to complete that 
proceeding in time so that any resulting rule modifications will apply 
to Auction No. 66. Moreover, the Commission proposed that in the event 
that any designated entity applicants have filed an application to 
participate in an auction prior to the effective date of any designated 
entity rule changes adopted pursuant to the CSEA/Part 1 Designated 
Entity FNPRM, such applicants would be required to amend their 
applications on or after the effective date of the rule changes with a 
statement declaring, under penalty of perjury, that the applicant is 
qualified as a designated entity pursuant to Sec.  1.2110 of the 
Commission's rules effective as of the date of the statement. Finally, 
the Commission noted that under this proposal the Bureau will establish 
any detailed procedures necessary for making required amendments and 
announce such procedures by public notice. Accordingly, applicants 
considering claiming eligibility as a designated entity in Auction No. 
66 should monitor further proceedings pursuant to the CSEA/Part 1 
Designated Entity FNPRM.

III. Pre-Auction Procedures

A. Auction Seminar--April 24, 2006

    89. On Monday, April 24, 2006, the FCC will sponsor a seminar for 
parties interested in participating in Auction No. 66 at the FCC 
headquarters, located at 445 12th Street, SW., Washington, DC. For 
individuals who are unable to attend, an Audio/Video webcast of this 
seminar will be available from the FCC's Auction No. 66 Web page.
    90. To register, complete the registration form Attachment C of the 
Auction No. 66 Procedures Public Notice and submit it by Thursday, 
April 20, 2006. Registrations are accepted on a first-come, first-
served basis.

B. Short-Form Application (FCC Form 175)--Due Before 6:00 p.m. ET on 
May 10, 2006

    91. 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 received at the Commission 
prior to 6 p.m. ET on May 10, 2006. Late applications will not be 
accepted. There is no application fee required when filing an FCC Form 
175. However, to be eligible to bid, an applicant must submit an 
upfront payment.
    92. Applications may generally be filed at any time beginning at 
noon ET on April 24, 2006, until 6 p.m. ET on May 10, 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 applications multiple times until the filing deadline on 
May 10, 2006. Information about accessing, completing, and viewing the 
FCC Form 175 is included in Attachment D of the Auction No. 66 
Procedures Public Notice.

C. Application Processing and Minor Corrections

    93. 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 corrected applications.

D. Upfront Payments--Due June 1, 2006

    94. 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 June 1, 2006.
i. Making Auction Payments by Wire Transfer
    95. Wire transfer payments must be received before 6 p.m. ET on 
June 1, 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.
    96. 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. 66. 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.
    97. Please note that: (a) All payments must be made in U.S. 
dollars; (b) All payments must be made by wire transfer; (c) upfront 
payments for Auction No. 66 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 and (d) failure to deliver 
the upfront payment by the June 1, 2006, deadline will result in 
dismissal of the application and disqualification from participation in 
the auction.
ii. FCC Form 159
    98. A completed FCC Remittance Advice Form (FCC Form 159, Revised 
2/03) must be faxed to Mellon Bank to accompany each upfront payment. 
Proper completion of FCC Form 159

[[Page 20681]]

(Revised 2/03) is critical to ensuring correct crediting of upfront 
payments. Detailed instructions for completion of FCC Form 159 are 
included in Attachment E of the Auction No. 66 Procedures Public 
Notice. An electronic pre-filled version of the FCC Form 159 is 
available after submitting the FCC Form 175. The FCC Form 159 can be 
completed electronically, but must be filed with Mellon Bank via 
facsimile.
iii. Upfront Payments and Bidding Eligibility
    99. In the Part 1 Order, 62 FR 13540, March 21, 1997, the 
Commission delegated to the Bureau the authority and discretion to 
determine appropriate upfront payment(s) for each auction. In addition, 
in the Part 1 Fifth Report and Order, 65 FR 52323, August 29, 2000, the 
Commission ordered that applicants that are former defaulters be 
required to pay upfront payments 50 percent greater than non-former 
defaulters. For purposes of this calculation, the applicant includes 
the applicant itself, its affiliates, its controlling interests, and 
affiliates of its controlling interests, as defined by 47 CFR 1.2110 of 
the Commission's rules.
    100. In the Auction No. 66 Comment Public Notice, the Bureau 
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 license, 
otherwise qualified bidders that selected that license on Form 175 must 
have a current eligibility level that meets or exceeds the number of 
b