Auction of FM Broadcast Construction Permits Scheduled for January 10, 2007; Notice and Filing Requirements, Minimum Opening Bids, Upfront Payments and Other Procedures for Auction No. 68, 65098-65113 [E6-18725]

Agencies

• FEDERAL COMMUNICATIONS COMMISSION

[Federal Register Volume 71, Number 215 (Tuesday, November 7, 2006)]
[Notices]
[Pages 65098-65113]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-18725]


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FEDERAL COMMUNICATIONS COMMISSION

[AU Docket No. 06-101; Report No. AUC-06-68-B (Auction No. 68); DA 06-
1949]


Auction of FM Broadcast Construction Permits Scheduled for 
January 10, 2007; Notice and Filing Requirements, Minimum Opening Bids, 
Upfront Payments and Other Procedures for Auction No. 68

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 certain FM Broadcast construction 
permits. This document is intended to familiarize prospective bidders 
with the procedures and minimum opening bids for this auction.

DATES: Short Form applications to participate in Auction No. 68 must be 
filed before 6 p.m. on November 13, 2006. Auction No. 68 is scheduled 
to begin on January 10, 2007.

FOR FURTHER INFORMATION CONTACT: Auctions 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) 338-2868. Audio Division, Media Bureau: For service 
rule questions: Lisa Scanlan or Thomas Nessinger at (202) 418-2700. To 
request materials in accessible formats (Braille, large print, 
electronic files, or audio format) for people with disabilities, send 
an e-mail to fcc504@fcc.gov or call the Consumer and Governmental 
Affairs Bureau at (202) 418-0530 or (202) 418-0432 (TTY).

SUPPLEMENTARY INFORMATION: This is a summary of the Auction No. 68 
Procedures Public Notice released on October 6, 2006. The complete text 
of the Auction No. 68 Procedures Public Notice, including attachments, 
as well as related Commission documents, are available for public 
inspection and copying from 8 a.m. to 4:30 p.m. Eastern Time (ET) 
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. 68 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 by contacting 
BCPI at its Web site: https://www.BCPIWEB.com. When ordering documents 
from BCPI please provide the appropriate FCC document number, for 
example, DA 06-1949 for the Auction No. 68 Procedures Public Notice. 
The Auction No. 68 Procedures Public Notice and related documents are 
also available on the Internet at the Commission's Web site: https://
wireless.fcc.gov/auctions/68/.

I. General Information

A. Introduction

    1. The Media Bureau and Wireless Telecommunications Bureau 
(collectively the Bureaus) announce the procedures and minimum opening 
bid amounts for the upcoming auction of certain FM broadcast 
construction permits scheduled to begin on January 10, 2007 (Auction 
No. 68). On August 24, 2006, in accordance with Section 309(j)(3) of 
the Communications Act of 1934, as amended, 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. 68. Interested 
parties submitted six comments and one reply comment in response to the 
Auction No. 68 Comment Public Notice, 71 FR 51822, August 31, 2006.
i. Construction Permits To Be Auctioned
    2. Auction No. 68 will offer nine construction permits in the FM 
broadcast service as listed in Attachment A of the Auction No. 68 
Procedures Public Notice. The construction permits to be auctioned are 
nine unsold FM construction permits from Auction Nos. 37 and 62. These 
construction permits are for vacant FM allotments, reflecting FM 
channels assigned to the FM Table of Allotments, pursuant to the 
Commission's established rulemaking procedures, and are designated for 
use in the indicated communities.
    3. Pursuant to the policies established in the Broadcast 
Competitive Bidding First Report and Order, 63 FR 48615, September 11, 
1998, applicants may apply for any vacant FM allotment listed in 
Attachment A of the Auction No. 68 Procedures Public Notice. When two 
or more short-form applications (FCC Form 175) specifying the same FM 
allotment are accepted for filing, mutual exclusivity (MX) exists for 
auction purposes, and thus, that construction permit for the FM 
allotment will be awarded by competitive bidding procedures. Once 
mutual exclusivity exists for auction purposes, even if only one 
applicant within an MX group 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. 68 and will remain subject to 
the Commission's anti-collusion rules, but will not be eligible to bid, 
having purchased no bidding eligibility.
    4. A commenter contends that the Auction No. 68 Comment Public 
Notice is deficient in that it does not sufficiently encourage the 
submission of applications for noncommercial educational (NCE) 
broadcast stations. The commenter surmises that, because the 
construction permits available in Auction No. 68 were unsold previously 
in Auction Nos. 37 and 62, this shows a lack of interest in providing 
commercial service in these areas, and therefore suggests that 
encouraging applications for NCE stations might result in new NCE 
service to these locations. The commenter's suggestion rests on an 
erroneous premise that there was a lack of interest in these permits. 
Rather, as discussed further below, the permits in this auction 
received multiple bids in those prior auctions. These permits are 
available now because either a bidder withdrew a high bid during the 
previous auction or a winning bidder defaulted after the close of the 
auction.
    5. The same commenter also suggests that the Auction No. 68 Comment 
Public Notice was deficient because it did not contain instructions for 
the submission of applications for NCE stations, citing a portion of 47 
CFR 73.5002(a) which states that initial and other public notices will 
contain instructions for completing applications to participate in the 
broadcast auction, and applications for NCE stations. The commenter's 
argument fails to recognize that an initial auction public notice is 
limited to announcing the upcoming auction and specifying the period 
for short-form applications. The Commission's initial auction public 
notices for FM auctions do not supply specific application filing 
instructions. Rather, such instructions are typically supplied in a 
subsequent public notice, such as the Auction No. 68 Procedures Public 
Notice, which announces the

[[Page 65099]]

procedures to be followed for the upcoming broadcast auction and 
provides filing instructions. The instructions for the filing of short-
form applications for both commercial and NCE stations are provided in 
the Auction No. 68 Procedures Public Notice. Moreover, the Commission's 
competitive bidding and broadcast service rules are specifically 
designed to accommodate applicants for NCE broadcast stations who seek 
to use nonreserved spectrum. In order to maximize opportunity for 
noncommercial broadcasters, the Commission permits applicants for NCE 
stations the opportunity to obtain licenses to use nonreserved spectrum 
by participating in auction filing windows. An applicant for an NCE 
station is permitted to submit an application for nonreserved spectrum 
in an auction filing window, subject to being returned as unacceptable 
for filing, if such application is mutually exclusive with an 
application for a commercial station. The opening of the upcoming 
window for nonreserved FM allotments for Auction No. 68 provides a 
filing opportunity for applications for both NCE and commercial 
stations. As with the previous two FM auctions, applicants will be 
allowed to submit short-form applications (FCC Forms 175) for NCE 
broadcast stations on the specific nonreserved spectrum to be auctioned 
in Auction No. 68 in the forthcoming filing window.
    6. The broad principle of NCE auction participation is simply not a 
subject matter for which the Bureaus sought comment. The Bureaus 
released the Auction No. 68 Comment Public Notice pursuant to statutory 
directive. Section 309(j)(3) of the Communications Act requires the 
Commission to ensure that, in the scheduling of any competitive bidding 
under this subsection, an adequate period is allowed before issuance of 
bidding rules, to permit notice and comment on proposed auction 
procedures. As stated in the Auction No. 68 Comment Public Notice, to 
ensure that potential bidders have adequate time to familiarize 
themselves with the specific rules that will govern the day-to-day 
conduct of an auction, the Bureaus sought comment on a variety of 
auction-specific procedures prior to the start of each auction. 
Specifically, the Bureaus sought comment on particular mechanisms 
related to auction conduct, including the structure of the bidding 
rounds, establishment of minimum opening bids, activity requirements, 
activity rule waivers and information relating to auction delay, 
suspension or cancellation. Thus, the concerns raised by this commenter 
lie outside of the scope of this proceeding.
    7. Three entities filed jointly a petition for reconsideration in 
response to the Auction No. 68 Comment Public Notice, requesting that 
the Bureaus delete four permits from the Auction No. 68 inventory. In 
their view, the FM construction permits at Perry, Florida, Parowan, 
Utah, Cedar Key, Florida, and Tecopa, California should be removed from 
the inventory and awarded on a first-come, first-served basis. Each of 
these three entities had its short-form application for an NCE station 
dismissed in an earlier FM auction because each was mutually exclusive 
with one or more applications for a commercial station for the same FM 
construction permit. These entities contend that the Commission should 
follow a longstanding first come, first served policy, and should 
immediately issue construction permits for these four FM stations to 
them. These three former applicants claim that, because these permits 
were offered but not awarded in Auction Nos. 37 or 62, the permits 
should now be available to them. In the Auction No. 68 Procedures 
Public Notice the Bureaus denied this request. The Bureaus declined to 
adopt the proposal made by these three former applicants because it 
would violate the Commission's rules and policies as established in the 
NCE Second Report and Order, 68 FR 26220, May 15, 2003, concerning the 
processing of mutual exclusive NCE and commercial applications. 
Implementation of this proposal would require amendment of the 
Commission's competitive bidding and broadcast service rules. The 
Bureaus' process for seeking comment on auction procedures is not the 
appropriate forum in which either to challenge determinations made in a 
rulemaking proceeding or to propose additional rule changes.

B. Rules and Disclaimers

i. Relevant Authority
    8. Prospective applicants must familiarize themselves thoroughly 
with the Commission's general competitive bidding rules, including 
recent amendments and clarifications. Broadcasters should also 
familiarize themselves with the Commission's rules relating to the FM 
broadcast service contained in 47 CFR 73.201-73.333 and 73.1001-
73.5009. Prospective bidders must also be familiar with the rules 
relating to broadcast auctions and competitive bidding proceedings 
contained in 47 CFR 1.2001-1.2112 and 73.5000-73.5009. Prospective 
bidders must also be thoroughly familiar with the procedures, terms and 
conditions contained in the Auction No. 68 Procedures Public Notice, 
the Auction No. 68 Comment Public Notice, the Broadcast Competitive 
Bidding First Report and Order, the Broadcast Competitive Bidding First 
Reconsideration Order, 64 FR 24523, May 7, 1999, and the New Entrant 
Bidding Credit Reconsideration Order, 64 FR 44856, August 18, 1999, and 
the NCE Second Report and Order.
    9. 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 all applicants 
to remain current with all Commission rules and with all public notices 
pertaining to this auction. Copies of most auctions-related Commission 
documents, including public notices, can be retrieved from the FCC 
Auctions Internet site at https://wireless.fcc.gov/auctions.
ii. Prohibition of Collusion; Compliance With Antitrust Laws
    10. Section 1.2105(c) of the Commission's rules prohibits 
applicants competing for construction permits 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 
Section 1.2105(a)(2)(viii). Thus, applicants for construction permits 
in any of the same geographic license areas 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. This prohibition applies to all applicants 
regardless of whether such applicants become qualified bidders or 
actually bid.
    11. The geographic license area is the market designation of the 
particular service. For the FM service, the market designation is the 
particular vacant FM allotment (e.g., Covelo, California, Channel 245A, 
Market FM366-A). In Auction No. 68, for example, the rule would apply 
to applicants designating

[[Page 65100]]

on the short-form application any of the same FM allotments. Therefore, 
applicants that apply to bid for an FM construction permit for the same 
allotment 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 each designate only one common FM allotment, 
they may not discuss with each other their bids or bidding strategies 
relating to any FM allotment that either designates on its short-form 
application.
    12. For purposes of this prohibition, Section 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, and 
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.
    13. Applicants for construction permits for any of the same 
allotments 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 competing 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. A violation of the anti-collusion 
rule could occur in other contexts, such as an individual serving as an 
officer for two or more applicants. Moreover, the Commission has found 
a violation of the anti-collusion rule where a bidder used the 
Commission's bidding system to disclose its bidding strategy in a 
manner that explicitly invited other auction participants to cooperate 
and collaborate in specific markets, and has placed auction 
participants on notice that the use of its bidding system to disclose 
market information to competitors will not be tolerated and will 
subject bidders to sanctions. Bidders are cautioned that the Commission 
remains vigilant about prohibited communications taking place in other 
situations. For example, the Commission has warned that prohibited 
communications concerning bids and bidding strategies may include 
communications regarding capital calls or requests for additional funds 
in support of bids or bidding strategies to the extent such 
communications convey information concerning the bids and bidding 
strategies directly or indirectly. Auction participants are hereby 
placed on notice that public disclosure of information relating to 
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 individuals, such as members of the press, financial analysts, or 
others who might become a conduit for the communication of prohibited 
bidding information.
    14. 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 Section 
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.
    15. By electronically submitting its short-form application, each 
applicant certifies its compliance with Sections 1.2105(c) and 73.7002. 
However, the Bureaus caution 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. The Commission has stated that it 
intends to scrutinize carefully any instances in which bidding patterns 
suggest that collusion may be occurring. Any applicant found to have 
violated the anti-collusion rule may be subject to sanctions.
    16. 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. For instance, a violation of the 
antitrust laws could arise out of actions taking place well before any 
party submits a short form application. The Commission has cited a 
number of examples of potentially anticompetitive actions that would be 
prohibited under antitrust laws: for example, actual or potential 
competitors may not agree to divide territories horizontally in order 
to minimize competition, regardless of whether they split a market in 
which they both do business, or whether they merely reserve one market 
for one and another for the other. Similarly, the Bureaus have long 
reminded potential applicants and others that even where the applicant 
discloses parties with whom it has reached an agreement on the short-
form application, thereby permitting discussions with those parties, 
the applicant is nevertheless subject to existing 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.
    17. 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, Section 1.65 requires an auction applicant to notify 
the Commission of any substantial change to the information or 
certifications included in its pending short-form application. 
Applicants are therefore required by Section 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 Section 1.2105(a)(2)(viii). In addition, Section

[[Page 65101]]

1.2105(c)(6) requires that any applicant that makes or receives a 
communication prohibited by Section 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.
    18. Applicants that are winning bidders will be required to 
disclose in their long-form applications the specific terms, 
conditions, and parties involved in any bidding consortia, joint 
venture, partnership, or agreement or other arrangement entered into 
relating to the competitive bidding process.
    19. 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 D of the Auction No. 68 Procedures Public Notice. 
These documents are available on the Commission's auction anti-
collusion Web page.
iii. Due Diligence
    20. Potential applicants 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 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.
    21. In particular, potential applicants are strongly encouraged to 
review all underlying Commission orders, such as the specific report 
and order amending the FM Table of Allotments and allotting the FM 
channel(s) on which they plan to bid. Orders adopted in FM allotment 
rulemaking proceedings often include anomalies, such as, site 
restrictions or expense reimbursement requirements. Bidders are also 
responsible for reviewing all pending rulemaking petitions and open 
proceedings that might affect the FM allotment(s) on which they plan to 
bid. Additionally, potential bidders should perform technical analyses 
sufficient to assure themselves that, should they prevail in 
competitive bidding for a given FM allotment, they will be able to 
build and operate facilities that will fully comply with the 
Commission's technical and legal requirements.
    22. Potential applicants are also strongly encouraged to conduct 
their own research prior to the beginning of bidding in Auction No. 68 
in order to determine the existence of any pending administrative or 
judicial proceedings that might affect their decision to participate in 
the auction. Participants in Auction No. 68 are strongly encouraged to 
continue such research throughout the auction.
    23. 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 permittees, 
or incumbent licensees, or the construction permits available in 
Auction No. 68. In addition, pending and future judicial proceedings 
may relate to particular applicants or incumbent permittees, or 
incumbent licensees, or the construction permits available in Auction 
No. 68. Prospective applicants are responsible for assessing the 
likelihood of the various possible outcomes, and considering their 
potential impact on construction permits available in this auction.
    24. Applicants should perform due diligence to identify and 
consider all proceedings that may affect the construction permits being 
auctioned and that could have an impact on the availability of spectrum 
for Auction No. 68. 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 beginning of bidding in the auction.
    25. 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. 68. 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 Commission's 
environmental assessment obligations.
    26. Applicants may research the licensing database for the Media 
Bureau on the Internet in order to determine which channels are already 
licensed to incumbent licensees or previously-authorized to 
construction permittees. Licensing records for the Media Bureau are 
contained in the Media Bureau's Consolidated Data Base System (CDBS) 
and may be researched on the Internet at https://www.fcc.gov/mb.
    27. The Commission makes no representations or guarantees regarding 
the accuracy or completeness of information in its databases or any 
third party databases, including, for example, court docketing systems. 
To the extent 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.
iv. Use of Integrated Spectrum Auction System
    28. The Commission will make available a browser-based bidding 
system to allow bidders to participate in Auction No. 68 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 qualified 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.
v. Bidder Alerts
    29. As is the case with many business investment opportunities, 
some unscrupulous entrepreneurs may attempt to use Auction No. 68 to 
deceive and defraud unsuspecting investors. Information about deceptive 
telemarketing 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

[[Page 65102]]

to the FTC, the SEC, or the National Fraud Information Center at (800) 
876-7060.
vi. National Environmental Policy Act Requirements
    30. 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 permittee must comply with the Commission's NEPA rules for each 
such facility. The Commission's NEPA rules require, among other things, 
that the permittee or 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 (through the local authority with 
jurisdiction over floodplains). In assessing the effect of facilities 
construction on historic properties, the permittee or licensee must 
follow the provisions of the Nationwide Programmatic Agreement 
Regarding the Section 106 National Historic Preservation Act Review 
Process. The permittee must prepare environmental assessments for 
facilities that may have a significant impact in or on wilderness 
areas, wildlife preserves, threatened or endangered species or 
designated critical habitats, historical or archaeological sites, 
Indian religious sites, floodplains, and surface features. The 
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
    31. Bidding in Auction No. 68 will begin on Wednesday, January 10, 
2007, as announced in the Auction No. 68 Comment Public Notice. The 
initial schedule for bidding will be announced by public notice at 
least one week before the start of the auction.
    32. Unless otherwise announced, bidding on construction permits 
will be conducted on each business day until bidding has stopped on all 
construction permits.
ii. Auction Title
    33. Auction No. 68--FM Broadcast
iii. Bidding Methodology
    34. The bidding methodology for Auction No. 68 will be simultaneous 
multiple round bidding. The Commission will conduct this auction over 
the Internet using the FCC Auction System. Qualified bidders are 
permitted to bid electronically via the Internet or by telephone. All 
telephone calls are recorded.
iv. Pre-Auction Dates and Deadlines
    35. Dates and Deadlines

Short-Form Application (FCC Form 175) Filing  November 6, 2006; 12 noon ET.
 Window Opens.
Short-Form Application (FCC Form 175) Filing  November 13, 2006; 6 p.m. ET.
 Window Deadline.
Upfront Payments (via wire transfer)........  December 11, 2006; 6 p.m. ET.
Mock Auction................................  January 8, 2007.
Auction Begins..............................  January 10, 2007.
 

v. Requirements for Participation
    36. Those wishing to participate in the auction must: (1) Submit a 
short-form application (FCC Form 175) electronically prior to 6 p.m. 
ET, November 13, 2006, following the electronic filing procedures set 
forth in Attachment B of the Auction No. 68 Procedures Public Notice; 
(2) submit a sufficient upfront payment and an FCC Remittance Advice 
Form (FCC Form 159) before 6 p.m. ET December 11, 2006, and (3) comply 
with all provisions outlined in this Public Notice and applicable 
Commission rules.
vi. General Contact Information
    37. See the Auction No. 68 Procedures Public Notice for the General 
Contact Information provided in a table format.

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

    38. 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. The short-form application is the first part of 
the Commission's two-phased auction application process. In the first 
phase of this process, parties desiring to participate in the auction 
file streamlined, short-form applications in which they certify under 
penalty of perjury as to their qualifications. Eligibility to 
participate in bidding is based on the applicants' short-form 
applications and certifications, as well as their upfront payments. In 
the second phase of the process, winning bidders file a more 
comprehensive long-form application.
    39. Entities and individuals seeking construction permits available 
in Auction No. 68 must file a short-form application electronically via 
the FCC Auction System before 6 p.m. ET on November 13, 2006, following 
the procedures prescribed in Attachment B to the Auction No. 68 
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 under penalty of perjury on their short-form applications 
that they are legally, technically, financially and otherwise qualified 
to hold a license. Applicants should read the instructions set forth in 
Attachment B of the Auction No. 68 Procedures Public Notice carefully 
and should consult the Commission's rules to ensure that all the 
information that is required under the Commission's rules and relevant 
public notices is included with their short-form applications.
    40. 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.
    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, 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, complete 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. Noncommercial Educational Facilities

    42. The opening of a window for nonreserved vacant FM allotments 
provides a filing opportunity for an applicant to apply for both 
noncommercial educational (NCE) and

[[Page 65103]]

commercial facilities. However, while non-mutually exclusive NCE 
applications will not be resolved through competitive bidding, any 
applications specifying NCE facilities that are mutually exlcusive with 
any applications specifying commercial facilities will be returned as 
unacceptable for filing pursuant to 47 CFR 73.5002(b).

B. New Entrant Bidding Credit

    43. The Commission adopted a tiered New Entrant Bidding Credit for 
broadcast auction applicants with no, or very few, other media 
interests.
i. Eligibility
    44. The interests of the applicant, and of any individuals or 
entities with an attributable interest in the applicant, in other media 
of mass communications, including both NCE and commercial full-power 
broadcast stations, shall be considered when determining an applicant's 
eligibility for the New Entrant Bidding Credit. The bidder's 
attributable interests shall be determined as of the short-form 
application (FCC Form 175) filing deadline--November 13, 2006. Thus, 
the applicant's maximum new entrant bidding credit eligibility will be 
determined as of the short-form application filing deadline. Applicants 
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--November 13, 2006. Prospective bidders are reminded, however, 
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.
    45. Under traditional broadcast attribution rules, including 47 CFR 
73.3555 Note 2, those entities or individuals with an attributable 
interest in a bidder include: (1) All officers and directors of a 
corporate bidder; (2) any owner of 5 percent or more of the voting 
stock of a corporate bidder; (3) all partners and limited partners of a 
partnership bidder, unless the limited partners are sufficiently 
insulated; and (4) all members of a limited liability company, unless 
sufficiently insulated.
    46. In cases where an applicant's spouse or close family member 
holds other media interests, such interests are not automatically 
attributable to the bidder. 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.
    47. Bidders are also 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 bidder 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.
    48. 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. Further, any bidder asserting new entrant 
status must have de facto as well as de jure control of the entity 
claiming the bidding credit pursuant to 47 CFR 73.5007. Typically, de 
facto control is evidence by ownership of at least 50.1 percent of an 
entity's voting stock or equivalent level of interest in cases where 
the bidder is not a corporate entity. De facto control is determined on 
a case-by-case basis.
    49. 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 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 nonreserved channels, are included among ``media of mass 
communications'' as defined in Section 73.5008(b).

C. Application Requirements

    50. In addition to the ownership information required pursuant to 
Section 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
    51. Applicants that qualify for the New Entrant Bidding Credit, as 
specified in 47 CFR 73.5007, 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: (1) 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 73.5008; (2) 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; (3) 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.
    52. 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. 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.

[[Page 65104]]

ii. Installment Payments
    53. Installment payment plans will not be available in Auction No. 
68.

D. Permit Selection

    54. In Auction No. 68, applicants must select the construction 
permits on which they want to bid from the Eligible Permits list. There 
will be no opportunity to change construction permit selection after 
the short-form filing deadline. It is critically important that an 
applicant confirm its construction permit selections before submitting 
its short-form application because the FCC Auction System will not 
accept bids on construction permits that an applicant has not selected 
on its short-form application.
    55. In reply comments, one commenter argues that the Commission 
should change its method of creating vacant FM allotments, and that the 
Commission on its own motion should reallocate these nine FM allotments 
in Auction No. 68 to new towns, as well as permitting winning bidders 
to petition to change the city of license for any construction permits 
won in auction as soon as final payment is made. In the Auction No. 68 
Procedures Public Notice, the Bureaus declined to adopt this 
commenter's proposals to change the Commission's vacant FM allotment 
rules and procedures because this is not the appropriate forum and due 
to an insufficient record for such rule and procedural changes.

E. Disclosure of Bidding Arrangements

    56. 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 
construction permits 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 
construction permits 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.
    57. 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: (1) 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 (2) 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. 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.

F. Ownership Disclosure Requirements

    58. The Commission specified in the Broadcast Competitive Bidding 
First Report and Order that, for purposes of determining eligibility to 
participate in a broadcast auction, 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 applicant. The ownership disclosure standards for the 
short form are prescribed in Sections 1.2105 and 1.2112. Each applicant 
is responsible for information submitted in its short-form application 
being complete and accurate.
    59. In certain circumstances an applicant's most current ownership 
information on file with the Commission, if in an electronic format 
compatible with the short-form application (FCC Form 175) (such as 
information submitted in an on-line FCC Form 602 or in an FCC Form 175 
filed for a previous auction using ISAS) will automatically be entered 
into the applicant's short-form application. Applicants are responsible 
for ensuring that the information submitted in their short-form 
application for Auction No. 68 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.

G. Provisions Regarding Former and Current Defaulters

    60. 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 47 CFR 1.2110, 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 as of the short-form filing deadline, the applicant, 
its affiliates, its controlling interests, and the affiliates of its 
controlling interests, as defined by Section 1.2110, 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. 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.
    61. Former defaulters, i.e., applicants, including any of their 
affiliates, any of their controlling interests, or any of the 
affiliates of their 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 
outstanding non-tax delinquencies are eligible to bid in Auction No. 
68, provided that they are otherwise qualified. However, former 
defaulters are required to pay upfront payments that are fifty percent 
more than the normal upfront payment amounts.
    62. 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 construction permit or

[[Page 65105]]

license (including a down payment) 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. 68.
    63. Applicants are encouraged to review the Wireless 
Telecommunications Bureau's previous guidance on default and 
delinquency disclosure requirements in the context of the 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 provisions of Sections 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. In 
contrast, even where Commission rules expressly permit late payment, 
subject to payment of an additional late fee, and do not impose a final 
payment deadline, the Commission in some cases may issue a demand for 
payment by a date certain. Failure to comply with the terms of a 
particular demand letter in the time period provided may render the 
subject debt delinquent, notwithstanding rules generally permitting 
late payment.
    64. 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 Sections 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 Section 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.
    65. Prospective applicants in Auction No. 68 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. Applicants that have their long-form application 
dismissed will be deemed to have defaulted and will be subject to 
default payments under 47 CFR 1.2104(g) and 1.2109(c).

H. Other Information

    66. Applicants owned by members of minority groups and/or women, as 
defined in Section 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, including rural telephone companies, in its auctions.

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

    67. After the deadline for filing short-form applications (FCC 
Forms 175) at 6 p.m. ET on November 13, 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 construction permit selections, change control of the 
applicant, claim eligibility for a higher percentage of bidding credit 
or change their self-identification as noncommercial educational). 
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.
    68. 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.
    69. An applicant must make permissible minor changes to its short-
form application, as such changes are defined by Section 1.2105(b), 
electronically, using the FCC Auction System. 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. It is recommended that an applicant print and retain a copy of 
the confirmation page.
    70. In addition, an applicant should submit a letter briefly 
summarizing the changes and subsequently update their short-form 
applications in ISAS as soon as possible.

    Note: After the filing window has closed, the auction system 
will not permit applicants to make certain changes, such as legal 
classification, NCE status, and bidding credit. Any letter 
describing changes to an applicant's short-form application must be 
submitted by electronic mail to the following address: 
auction68@fcc.gov.

    71. Applicants must not submit application-specific material 
through the Commission's Electronic Comment Filing System (ECFS), which 
was used for submitting comments regarding Auction No. 68 procedures.

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

    72. As applicant is required by 47 CFR 1.65 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 the 
percentage of bidding credit specified on the originally submitted Form 
175 application 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.

[[Page 65106]]

i. Maintaining the Accuracy of FCC Form 175 Information
    73. After the short-form filing deadline, applicants may make only 
minor changes to their FCC Form 175 applications, for example, deletion 
and addition of authorized bidders (to a maximum of three). Applicants 
must click on the SUBMIT button in the FCC Auction System for the 
changes to be submitted and considered by the Commission. In addition, 
applicants must submit a letter, briefly summarizing the changes, by 
electronic mail at the following address: auction68@fcc.gov.
    74. Applicants must not submit application-specific material 
through ECFS into the record of the proceeding, which was used for 
submitting comments concerning Auction No. 68 procedures.

III. Pre-Auction Procedures

A. Auction Seminar

    75. There will be no auction seminar for Auction No. 68. A 
previously held FM broadcast auction seminar is available for 
individuals to view from the FCC's Web page at https://wireless.fcc.gov/
auctions/62/. To the extent that competitive bidding procedures 
discussed in that seminar presentation may have differed from those 
described in the Auction No. 68 Procedures Public Notice, the 
procedures and instructions described in the latter public notice will 
control and must be followed.

B. Short-Form Application (FCC Form 175)--Due Before 6 p.m. ET on 
November 13, 2006

    76. 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 November 13, 2006. Late applications or 
unconfirmed submissions of electronic data 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.
    77. Applications may generally be filed at any time beginning at 
noon ET on November 6, 2006, until 6 p.m. ET on November 13, 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 November 13, 2006. Information about accessing, completing 
and viewing the FCC Form 175 is included in Attachment B of the Auction 
No. 68 Procedures Public Notice.
    78. An applicant must always click on the SUBMIT button on the 
Certifiy & Submit screen of the electronic form to successfully submit 
its FCC Form 175 or modifications. Any form that is not submitted will 
not be reviewed by the FCC. After the application has been submitted, a 
confirmation page will be displayed that states the submission time and 
date, along with a unique file number. It is recommended that an 
applicant print and retain a copy of the confirmation page.

C. Application Processing and Minor Corrections

    79. 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.
    80. 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 that public notice. All 
mutually exclusive applications will be considered under the relevant 
procedures for conflict resolution. Mutually exclusive commercial 
applications will proceed to auction. In the NCE Second Report and 
Order, the Commission held that applications for NCE FM stations on 
nonreserved spectrum, filed during an FM filing window, will be 
returned as unacceptable for filing, if mutually exclusive with any 
application for a commercial station. Accordingly, if an FCC Form 175 
filed during the Auction No. 68 filing window identifying the station 
as noncommercial educational is mutually exclusive with any application 
filed during that window by an applicant for a commercial station, the 
former will be returned as unacceptable for filing. However, if 
stations are not identified by applicants on the short-form application 
as NCE, the applications will be considered as a matter of law as 
applications for commercial broadcast stations.
    81. As described more fully in the Commission's rules, after the 
short-form filing deadline on November 13, 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.

D. Upfront Payments--Due December 11, 2006

    82. 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 December 11, 2006.
i. Making Auction Payments by Wire Transfer
    83. Wire transfer payments must be received before 6 p.m. ET on 
December 11, 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.
    84. 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 Ba