Auction of 700 MHz Band Licenses Scheduled for January 24, 2008; Notice and Filing Requirements, Minimum Opening Bids, Reserved Prices, Upfront Payments and Other Procedures for Auctions 73 and 76, 62360-62392 [E7-21528]

Agencies

• FEDERAL COMMUNICATIONS COMMISSION

[Federal Register Volume 72, Number 212 (Friday, November 2, 2007)]
[Notices]
[Pages 62360-62392]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-21528]



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Part IV





Federal Communications Commission





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Auction of 700 MHz Band Licenses Scheduled for January 24, 2008; Notice 
and Filing Requirements, Minimum Opening Bids, Reserved Prices, Upfront 
Payments and Other Procedures for Auctions 73 and 76; Notice

Federal Register / Vol. 72, No. 212 / Friday, November 2, 2007 / 
Notices

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FEDERAL COMMUNICATIONS COMMISSION

[AU Docket No. 07-157; Report No. AUC-07-73-B (Auctions 73 and 76); DA 
07-4171]


Auction of 700 MHz Band Licenses Scheduled for January 24, 2008; 
Notice and Filing Requirements, Minimum Opening Bids, Reserved Prices, 
Upfront Payments and Other Procedures for Auctions 73 and 76

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 700 MHz Band Licenses 
(Auctions 73 and 76). This document is intended to familiarize 
prospective bidders with the procedures and minimum opening bids for 
these auctions.

DATES: Applications to participate in 700 MHz Band Licenses Auctions 73 
and 76 must be filed before 6 p.m. ET on December 3, 2007. Bidding for 
Auction No. 73 is scheduled to begin on January 24, 2008. Contingent 
subsequent bidding in Auction 76, if necessary, will begin on a date to 
be announced after Auction 73 has closed.

FOR FURTHER INFORMATION CONTACT: Wireless Telecommunications Bureau, 
Auctions Spectrum and Access Division: For legal questions: Scott 
Mackoul, Stephen Johnson or Howard Davenport at (202) 418-0660. For 
general auction questions: Lisa Stover at (717) 338-2868. Mobility 
Division: For service rule questions: Erin McGraft (legal), Keith 
Harper (engineering) and Denise Walter (licensing) at (202) 418-0620. 
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 Auctions 73 and 76 
Procedures Public Notice released on October 5, 2007. The complete text 
of the Auctions 73 and 76 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. On October 19, 2007, a Public 
Notice was released announcing a change in the date of the bidders' 
seminar for Auctions 73 and 76 from November 19, 2007 to November 20, 
2007. The Auctions 73 and 76 Procedures Public Notice and related 
Commission documents may also be purchased from the Commission's 
duplicating contractor, Best Copy and Printing, Inc. (BCPI), Portals 
II, 445 12th Street, SW., Room CY-B402, Washington, DC, 20554, 
telephone 202-488-5300, facsimile 202-488-5563, or Web site: https://
www.BCPIWEB.com. When ordering documents from BCPI, please provide the 
appropriate FCC document number, for example, DA 07-4171 for the 
Auctions 73 and 76 Procedures Public Notice. The Auctions 73 and 76 
Procedures Public Notice and related documents are also available on 
the Internet at the Commission's Web site: https://wireless.fcc.gov/
auctions/73/.

I. General Information

A. Introduction

    1. The Wireless Telecommunications Bureau (the Bureau) announces 
the procedures and minimum opening bid amounts for the upcoming auction 
of licenses for services in the 698-806 MHz band (700 MHz Band) 
scheduled to begin on January 24, 2008. This auction is designated as 
Auction 73. Auction 73 will offer 700 MHz Band licenses for initial 
bidding and the 700 MHz Band licenses may be offered in contingent 
subsequent bidding. In the event that any licenses are offered in 
contingent subsequent bidding, that event will be designated as Auction 
76. On August 17, 2007, in accordance with Section 309(j)(3) of the 
Communications Act of 1934, as amended, the Bureau released a public 
notice seeking comment on competitive bidding procedures for both the 
initial bidding and the contingent subsequent bidding for 700 MHz Band 
licenses. Interested parties submitted 12 comments and 8 reply comments 
in response to the 700 MHz Auction Public Notice, 72 FR 48272, August 
23, 2007, as well as a number of ex parte communications.
    2. In the 700 MHz Auction Public Notice, the Bureau proposed to 
include all available, commercial 700 MHz Band licenses (1,099 
licenses) for initial bidding in Auction 73 using the Commission's 
standard simultaneous multiple-round (SMR) auction format for the A, B, 
D, and E block licenses and an auction design with hierarchical package 
bidding (HPB) for the C Block licenses. The 700 MHz Auction Public 
Notice also proposed procedures for the contingent subsequent bidding, 
now designated Auction 76, on licenses for spectrum associated with any 
initially offered licenses for which the Auction 73 results do not 
satisfy applicable reserve prices. Based on the record and after 
considering comments provided in response to the 700 MHz Auction Public 
Notice, the Bureau hereby announces the final procedures for Auctions 
73 and Auction 76.
    3. The Auctions 73 and 76 Procedures Public Notice provides, among 
other things, procedures for the following: (1) Anonymous bidding, to 
enhance competition by safeguarding against potential anti-competitive 
auction strategies; (2) package bidding, to enable bidders trying to 
combine multiple C Block licenses to place bids on packages of those 
licenses; (3) block-specific aggregate reserve prices, to help assure 
that the public recovers a portion of the value of the spectrum 
resource; and (4) prompt subsequent bidding in Auction 76, to offer 
licenses for relevant block(s) in the event Auction 73 results do not 
satisfy applicable reserve prices.
    4. Anonymous Bidding. In the 700 MHz Second Report and Order, 65 FR 
17594, April, 4, 2000, the Commission found that the public interest 
would be served if the auction for new 700 MHz Band licenses is 
conducted using anonymous (or limited information) bidding procedures, 
regardless of any pre-auction measurement of likely auction 
competition. Such information procedures are intended to reduce the 
potential for anti-competitive bidding behavior, including bidding 
activity that aims to prevent the entry of new competitors. Having 
proposed and sought comment on more detailed procedures for employing 
anonymous bidding for the upcoming auction, the Bureau now announces 
the anonymous bidding procedures.
    5. Package Bidding for C Block Licenses. The Commission also 
determined in the 700 MHz Second Report and Order that providing for 
package bidding for C Block licenses would serve the public interest. 
The Commission found that package bidding for these licenses should 
facilitate the entry of entities seeking to create a nationwide 
footprint and whose business plans require the economies of scale that 
only can be obtained with nationwide operation. At Commission 
direction, the Bureau previously proposed and sought comment on 
detailed procedures for implementing package bidding for the C Block 
licenses and not for licenses in the other blocks to be auctioned. In 
the Auctions 73 and 76 Procedures Public Notice, the Bureau detailed 
the process for package bidding for the C Block licenses.
    6. Block-Specific Aggregate Reserve Prices. The Commission also 
decided to

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provide for aggregate reserve prices for licenses authorizing the use 
of each block of the commercial 700 MHz Band yet to be licensed. The 
Commission concluded that, consistent with its statutory mandate, 
disclosed reserve prices would promote the recovery of a portion of the 
value of the public spectrum resource. The Commission directed the 
Bureau to adopt aggregate reserve prices reflecting the potential 
market value of this spectrum based on a variety of factors including, 
but not limited to, the characteristics of this band and the auction 
prices of other recently auctioned licenses, such as licenses for 
Advanced Wireless Services in the 1710-1755 MHz and 2110-2155 MHz bands 
(AWS-1). Accordingly, the Bureau proposed and sought comment on the 
following block-specific aggregate reserve prices: Block A, $1.807380 
billion; Block B, $1.374426 billion; Block C, $4.637854 billion; Block 
D, $1.330000 billion; Block E, $0.903690 billion. Further, the Bureau 
proposed that if the sum of the provisionally winning bids for the 
licenses in a block does not satisfy the relevant aggregate reserve 
price, none of the relevant licenses for the particular block will be 
assigned based on the auction results. In the Auctions 73 and 76 
Procedures Public Notice, the Bureau adopted this proposal.
    7. Auction 76 Overview. The Commission decided that, if licenses 
initially offered for the A, B, C, or E Blocks are not assigned because 
the auction results do not satisfy the applicable aggregate reserve 
price(s) for those licenses, the Commission promptly will offer 
alternative licenses for those blocks. More specifically, the 
Commission will offer licenses for the A, B, and E Blocks subject to 
alternative performance requirements. With respect to the C Block, the 
Commission will offer alternative licenses without the open platform 
conditions and based on different geographic areas and spectrum 
bandwidth. If the D Block license is not assigned because the auction 
results do not satisfy the D Block reserve price, the Commission may 
re-offer that license subject to the same rules or reconsider the 
applicable rules. For administrative purposes, the Bureau will 
designate as Auction 76 any subsequent bidding for alternative licenses 
for the A, B, C or E Blocks or for the D Block license that occurs 
because Auction 73 results for licenses initially offered for the 
relevant blocks do not satisfy the applicable aggregate reserve 
price(s). In the Auctions 73 and 76 Procedures Public Notice, the 
Bureau announced detailed procedures for conducting Auction 76, if 
necessary.
    8. The Commission will conduct bidding in Auction 73 and any 
contingent subsequent bidding in Auction 76 for 700 MHz Band licenses 
as a single auction to the extent possible, given the strong public 
interest in promptly assigning all 700 MHz Band licenses for recovered 
analog spectrum and the related nature of the licenses being offered in 
Auctions 73 and 76. Thus, pursuant to the 700 MHz Second Report and 
Order, the Bureau will permit only qualified bidders in the initial 
auction to participate in the contingent subsequent auction. To enable 
a prompt start to Auction 76 after Auction 73, applicants must select 
any licenses on which they may bid in Auction 76 by the deadline for 
filing their Auction 73 application. Applicants must select those 
licenses by submitting a separate abbreviated short-form application to 
participate in Auction 76. The abbreviated Auction 76 application must 
be filed together with the applicant's standard application for Auction 
73, following procedures described in the Auctions 73 and 76 Procedures 
Public Notice. In the event that Auction 76 takes place, bidder 
identity and other information on the applicant's completed Auction 73 
short-form application will be combined with the licenses selected in 
the abbreviated Auction 76 application to create the applicant's 
Auction 76 application. This process will minimize the time period 
between auctions by eliminating any need for applicants to take time 
following Auction 73 to file new applications or select additional 
licenses, and for the Commission to review newly-filed short-form 
applications. Applicants in Auction 76, however, will have an 
opportunity after Auction 73 to obtain additional eligibility for any 
licenses offered in Auction 76 by supplementing their upfront monies on 
deposit with the Commission pursuant to the procedures as provided for 
in the 700 MHz Second Report and Order.
    9. The Bureau also will use the Auction 73 design in Auction 76, 
including an aggregate reserve price for each block that matches the 
applicable initial reserve price. In the event that alternative 
licenses for the C Block are offered for Blocks C1 and C2, the Bureau 
will conduct package bidding for the C2 Block only, using the pre-
determined packages. Alternative licenses for Blocks C1 and C2 will be 
subject to reserve prices. There will be a joint aggregate reserve 
price equal to the initial auction C Block aggregate reserve price, and 
separate aggregate reserve prices for the C1 and C2 Blocks that add to 
the joint aggregate reserve price. Licenses in both blocks will be 
assigned if the joint aggregate reserve price is met. If the joint 
aggregate reserve price is not met but one of the block-specific 
reserve prices is met, licenses in the block for which the reserve 
price is met will be assigned. Licenses in the other block will not be 
assigned. This will assure the aggregate reserve price in the initial 
auction continues to apply while maximizing the opportunity for 
licenses for either Block C1 or C2 to be assigned.
i. Background of Proceeding
    10. The Commission is offering the licenses in Auction 73 
consistent with the requirements of the Digital Television Transition 
and Public Safety Act of 2005 (DTV Act). Pursuant to the DTV Act the 
Commission must conduct the auction of licenses for recovered analog 
spectrum by commencing the bidding not later than January 28, 2008. A 
number of incumbent broadcasters are licensed and operating on these 
frequencies (TV Channels 52-53, 56-58, 60-62, and 65-67) and adjacent 
channels.
ii. Licenses To Be Offered in Auction 73
    11. Auction 73 will offer a total of 1,099 licenses: 176 Economic 
Area (EA) licenses in each of the A and E Blocks, 734 Cellular Market 
Area (CMA) licenses in the B Block, 12 Regional Economic Area Grouping 
(REAG) licenses in the C Block, and one nationwide license, to be used 
as part of the 700 MHz Public/Private Partnership, in the D Block.

B. Rules and Disclaimers

i. Relevant Authority
    12. Prospective applicants must familiarize themselves thoroughly 
with the Commission's general competitive bidding rules set forth in 
Title 47, part 1, of the CFR, including recent amendments and 
clarifications; rules relating to the 700 MHz Band contained in Title 
47, part 27, of the CFR; rules relating to the public/private 
partnership applicable to the D Block contained in Title 47, part 90, 
of the CFR; and rules relating to applications, environment, practice 
and procedure contained in Title 47, part 1, of the CFR. Prospective 
applicants must also be thoroughly familiar with the procedures, terms 
and conditions (terms) contained in the Auctions 73 and 76 Procedures 
Public Notice and the Commission's decisions in proceedings regarding 
competitive bidding procedures, application requirements, and 
obligations of

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Commission licensees. For example, among other Commission orders, 
prospective bidders should be familiar with the 700 MHz First Report 
and Order, 65 FR 3139, January 20, 2000, and the 700 MHz Second Report 
and Order.
    13. 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 applicants 
to remain current with all Commission rules and with all public notices 
pertaining to Auctions 73 and 76.
ii. Prohibition of Collusion; Compliance With Antitrust Laws
    14. To ensure the competitiveness of the auction process, Sec.  
1.2105(c) of the Commission's rules prohibits auction applicants for 
licenses in any of the same geographic license areas from communicating 
with each other about bids, bidding strategies, or settlements 9 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).
a. Entities Subject to Anti-Collusion Rule
    15. The anti-collusion rule will apply to any applicants that 
submit short-form applications for Auctions 73 or 76 and select 
licenses in the same or overlapping CMAs, EAs, REAGs or the nationwide 
license in the D Block. For example, assume that one applicant applies 
for a REAG license and a second applicant applies for an EA license 
covering any area within that REAG. The two entities will have applied 
for licenses covering the same geographic areas and would be precluded 
from communicating with each other under the rule. The rule also 
applies where one applicant has selected a license in Auction 73 and 
another applicant selects a license in Auction 76 that covers any of 
the same geographic area. In addition, the rule precludes applicants 
that apply to bid for the nationwide license in the D Block, or all the 
licenses in any other block, from communicating with all other 
applicants. Thus, applicants that have applied for licenses covering 
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 applies to all applicants regardless of whether such 
applicants become qualified bidders or actually bid. Information 
concerning applicants' license selections will not be available to the 
public. Therefore, the Commission will inform each applicant by letter 
of the identity of each of the other applicants that has applied for 
licenses covering any of the same geographic areas as the licenses that 
it has selected in its short-form application.
    16. 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.
    17. Entities and parties subject to the anti-collusion rule should 
take special care in circumstances where their employees may receive 
information directly or indirectly from a competing applicant relating 
to any competing applicant's bids or bidding strategies. In situations 
where the anti-collusion rule views the same person as the applicant 
with respect to two different entities filing competing applications, 
under Bureau precedent the bids and bidding strategies of one applicant 
are necessarily conveyed to the other and, absent a disclosed bidding 
agreement, an apparent violation of the anti-collusion rule occurs. The 
Bureau has not addressed situations where employees who do not qualify 
as the applicant, (e.g., are not officers or directors) receive 
information regarding a competing applicant's bids or bidding 
strategies and whether that information might be deemed to necessarily 
convey to the applicant. The Bureau notes that the exception to the 
anti-collusion rule providing that non-controlling interest holders may 
have interests in more than one competing bidder without violating the 
anti-collusion rule, provided specified conditions are met (including a 
certification that no prohibited communications have occurred or will 
occur), does not extend to controlling interest holders.
b. Prohibition Applies Until Down Payment Deadline
    18. Section 1.2105(c)'s anti-collusion prohibition begins at the 
short-form application filing deadline and ends at the down payment 
deadline after the auction. In recognition of the related nature of the 
initial auction and any contingent auction of alternative licenses, the 
Commission concluded in the 700 MHz Second Report and Order that the 
provisions of the anti-collusion rule would continue to apply until the 
down payment deadline for the subsequent auction.
    19. Some commenters argue that the Bureau should allow applicants 
to opt-out from the anti-collusion prohibition in the event Auction 76 
is conducted. A commenter proposed that an applicant that has no 
intention to bid in the subsequent auction could inform the Commission 
of its intent in writing with a certification that its decision is not 
based on any discussion with other competing bidders of auction 
strategy or post-auction market structure. As one commenter 
acknowledges, changing the application of the rule in this way is 
beyond the Bureau's delegated authority and beyond the scope of this 
non-rulemaking proceeding and would require action by the Commission to 
reconsider its determination in the 700 MHz Second Report and Order. 
Thus, the Bureau is unable to adopt the proposed opt-out certification 
procedure. If it is necessary to conduct Auction 76, the provisions of 
the anti-collusion rule will apply to all applicants until the down 
payment deadline, which will occur after the close of bidding on 
licenses offered in Auction 76.
c. Prohibited Communications
    20. Prospective applicants for upcoming Auctions 73 and 76 and 
other parties that may be engaged in discussion with such prospective 
applicants are cautioned of the need to comply with the Commission's 
anti-collusion rule, Sec.  1.2105(c). The anti-collusion rule prohibits 
not only a communication about an applicant's own bids or bidding 
strategy, but also a communication of another applicant's bids or 
bidding strategy. While the anti-collusion rule provisions do not 
prohibit business negotiations among auction applicants, applicants 
must remain vigilant so as not to communicate directly or indirectly 
information that affects, or could affect, bids or bidding strategy, or 
the negotiation of settlement agreements.
    21. The Commission remains vigilant about prohibited communications

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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.
    22. Applicants are hereby placed on notice that public disclosure 
of information relating to bidder interests and bidder identities that 
is confidential in both Auctions 73 and 76 at the time of disclosure 
may violate the anti-collusion rule. This is so even though similar 
types of information were revealed prior to and during other Commission 
auctions subject to different information procedures. 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. For example, where 
limited information disclosure procedures are in place, as for Auctions 
73 and 76, a qualified bidder's statement to the press that it has lost 
bidding eligibility and stopped bidding in the auction could give rise 
to a finding of an anti-collusion rule violation. Similarly, an 
applicant's public statement of intent not to participate in Auction 76 
bidding could also violate the rule.
    23. 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 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.
    24. In addition, when completing short-form applications, 
applicants should avoid any statements or disclosures that may violate 
the Commission's anti-collusion rule, particularly in light of the 
Commission's procedures for limited information. Specifically, 
applicants should avoid including any information in their short-form 
applications that might convey information regarding their license 
selection, such as using applicant names that refer to licenses being 
offered, referring to certain licenses or markets in describing bidding 
agreements, or including any information in attachments that may 
otherwise disclose applicants' license selections.
d. Disclosure of Bidding Agreements and Arrangements
    25. 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 for licenses 
covering any of the same or overlapping geographic areas after the 
short-form filing deadline.
e. Anti-Collusion Certification
    26. By electronically submitting a short-form application following 
the electronic filing procedures set forth in Attachments D and E to 
the Auctions 73 and 76 Procedures Public Notice, each applicant 
certifies its compliance with Sec.  1.2105(c). However, the Bureau 
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. 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.
f. Antitrust Laws
    27. 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 Bureau has 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 
suggest that violations of the federal antitrust laws may have 
occurred, 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.
    28. One commenter urges the Commission to adopt an auction rule 
that states that a bidder cannot release any bidding information to the 
public during the course of the auction, and provide notice that all 
parties remain subject to the antitrust laws. As another commenter 
points out, however, the

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Commission has consistently provided such guidance in prior auctions. 
The Bureau does so again here: All parties remain subject to the 
antitrust laws.
g. Duty to Report Prohibited Communications
    29. If an applicant makes or receives a communication that appears 
to violate the anti-collusion rule, it must report such communication 
in writing to the Commission immediately and in no case later than five 
business days after the communication occurs. The Commission recently 
clarified that each applicant's obligation to report any such 
communication continues beyond the five-day period after the 
communication is made, even if the report is not made within the five 
day period.
    30. 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. Thus, Sec.  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 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).
    31. Applicants must be aware that failure to comply with the 
Commission's rules can result in enforcement action.
h. Winning Bidders Must Disclose Terms of Agreements
    32. 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 
ventures, partnerships, and other arrangements entered into relating to 
the competitive bidding process.
i. Additional Information Concerning Anti-Collusion Rule
    33. 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 I of the Auctions 73 and 76 Procedures Public 
Notice. These documents are available on the Commission's auction anti-
collusion Web page.
iii. Protection of Incumbent Operations
    34. A number of incumbent broadcasters are licensed and operating 
on these frequencies (TV Channels 52-53, 56-58, 60-62, and 65-67) and 
adjacent channels. In accordance with the Commission's rules, 700 MHz 
Band licensees must protect analog and digital TV incumbents from 
harmful interference through February 17, 2009, the end of the DTV 
transition period. After February 17, 2009, 700 MHz licensees must 
continue to operate in accordance with the Commission's rules to reduce 
the potential for interference to public reception of the signals of 
DTV broadcast stations transmitting on DTV Channel 51. These 
limitations may restrict the ability of such geographic area licensees 
to use certain portions of the electromagnetic spectrum or provide 
service to some parts of their geographic license areas.
    35. In the 700 MHz Second Report and Order, the Commission 
grandfathered an incumbent guard band B Block licensee in Major 
Economic Areas (MEAs) 21 and 39 at 761-763 MHz and 791-793 MHz of the D 
Block. The new D Block licensee will be authorized on a secondary basis 
at 761-763 MHz and 791-793 MHz in these markets, and it may not cause 
interference to the primary operations of the grandfathered licensee. 
If the grandfathered licensee, or a successor or assignee, cancels 
either of the grandfathered licenses, or if either license cancels 
automatically, is terminated by the Commission, or expires, then the 
licensed geographic area will revert to the D Block licensee 
automatically.
a. International Coordination
    36. Potential bidders seeking licenses for geographic areas that 
are near the Canadian or Mexican borders are subject to international 
agreements with Canada and Mexico. Pursuant to these agreements, the 
U.S. must protect the signals of Canadian and Mexican television 
broadcast stations located in the border area. Unless otherwise 
modified by international treaty, licensees must not cause interference 
to, and must accept harmful interference from, television broadcast 
operations in Mexico and Canada. Further, until such time as existing 
agreements are replaced or modified to reflect the new uses, licensees 
in the band will be subject to existing agreements.
b. Quiet Zones
    37. 700 MHz Band 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.
iv. Due Diligence
    38. The Bureau cautions potential applicants formulating their 
bidding strategies to investigate and consider the extent to which 700 
MHz Band frequencies are occupied. Applicants and their investors 
should also understand that Commission rules and requirements place 
limitations on the ability of 700 MHz Band licensees to use this 
spectrum. There are a number of incumbent broadcast television 
licensees already licensed and operating in the band that will be 
subject to the upcoming auction. Geographic area licensees operating on 
the spectrum associated with Channels 52-53, 56-58, 60-62, and 65-67 
must comply with the co-channel and the adjacent channel provision of 
Sec.  27.60 of the Commission's rules. These limitations may restrict 
the ability of such geographic area licensees to use certain portions 
of the electromagnetic spectrum or provide service to certain areas in 
their geographic license areas. For example, bidders should become 
familiar with any petitions or other pleadings filed in response to the 
700 MHz First Report and Order, 700 MHz Second Report and Order, and 
any other orders that have been or may be released affecting the 700 
MHz Band.
    39. 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 700 MHz Band licenses. 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 700 MHz Band 
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.
    40. Potential bidders are strongly encouraged to conduct their own 
research prior to the beginning of

[[Page 62365]]

bidding in Auction 73 in order to determine the existence of any 
pending legislative, administrative or judicial proceedings that might 
affect their decision regarding participation in the auction, including 
any subsequent auction (if necessary). Participants in Auctions 73 and 
76 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 as well as other applicable Federal, 
state, and local laws.
    41. Applicants should also be aware that certain pending and future 
proceedings, including rulemaking proceedings or petitions for 
rulemaking, applications (including those for modification), 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 Auctions 73 and 76. 
For example, bidders should note that petitions have been filed for 
reconsideration of certain decisions made in the 700 MHz First Report 
and Order and the 700 MHz Second Report and Order. In addition, 
applicants should be aware that the Commission has sought comment on a 
range of proposals concerning consumer education about the DTV 
transition, including the possible imposition of reporting requirements 
on winning bidders for 700 MHz band licenses. Of course, pending and 
future judicial proceedings may relate to particular applicants or 
incumbent licensees, or the licenses available in Auctions 73 and 76. 
Prospective bidders are responsible for assessing the likelihood of the 
various possible outcomes, and considering their potential impact on 
spectrum licenses available in Auctions 73 and 76.
    42. 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 73. 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.
    43. 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 being offered.
    44. Applicants may use the licensing database for the Media Bureau 
on the Internet in order to determine which frequencies are already 
licensed to incumbent licensees. 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/
cdbs.html. Potential bidders should direct questions regarding the 
search capabilities of CDBS to the Media Bureau help line at (202) 418-
2662, or via e-mail at cdbshelp@fcc.gov.
    45. 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.
    46. Potential applicants are strongly encouraged to physically 
inspect any prospective sites located in, or near, the geographic area 
for which they plan to bid, and also to familiarize themselves with the 
environmental review obligations.
v. Use of Integrated Spectrum Auction System
    47. The Commission will make available a browser-based bidding 
system to allow bidders to participate in Auction 73 over the Internet 
using the Commission's Integrated Spectrum Auction System (ISAS or FCC 
Auction System). The Commission makes no warranty 21 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 Auctions 73 and 76. 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.
vi. Fraud Alert
    48. As is the case with many business investment opportunities, 
some unscrupulous entrepreneurs may attempt to use Auction 73 to 
deceive and defraud unsuspecting investors. Information about deceptive 
telemarketing investment schemes is available from the Commission as 
well as the FTC and SEC. Complaints about specific deceptive 
telemarketing investment schemes should be directed to the FTC, the 
SEC, or the National Fraud Information Center at (800) 876-7060.
vii. Environmental Review Requirements
    49. Licensees must comply with the Commission's rules regarding 
implementation of the National Environmental Policy Act and other 
federal environmental statutes. The construction of a wireless antenna 
facility is a federal action and the licensee must comply with the 
Commission's environmental rules for each such facility. The 
Commission's environmental rules require, among other things, that the 
licensee consult with expert agencies having environmental 
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 licensee must follow the 
provisions of the Nationwide Programmatic Agreement Regarding the 
Section 106 National Historic Preservation Act Review Process. The 
licensee must prepare environmental assessments for facilities that may 
have a significant impact in or on wilderness areas, wildlife 
preserves, threatened or endangered species or designated critical 
habitats, historical or archaeological sites, Indian religious sites, 
floodplains, and surface features. The licensee also must prepare 
environmental assessments for facilities that include high intensity 
white lights in residential neighborhoods or excessive radio frequency 
emission.

[[Page 62366]]

C. Auction Specifics

i. Auction 73 Start Date
    50. Bidding in Auction 73 will begin on Thursday, January 24, 2008.
    51. This change of the previously-announced start date for Auction 
73 will provide interested parties with additional time after this 
announcement of competitive bidding procedures to develop business 
plans, assess market conditions, and evaluate the availability of 
equipment for new 700 MHz Band services.
    52. Some commenters had sought a postponement of the previously-
announced start date until January 25 or 28, 2008. Pursuant to the 
Congressional mandate, the Commission must conduct the auction of 
licenses for recovered analog spectrum in the 700 MHz Band by 
commencing the bidding not later than January 28, 2008. Starting the 
auction on the statutory deadline for commencing the auction, or one 
business day prior to the deadline would provide insufficient time to 
address unexpected matters that might arise just prior to the start of 
bidding.
    53. The initial schedule for bidding will be announced by public 
notice at least one week before the start of the auction. Moreover, 
unless otherwise announced, bidding on all licenses and packages will 
be conducted on each business day until bidding has stopped on all 
licenses and packages.
ii. Auction Title
    54. The auction in which the 700 MHz Band licenses will initially 
be offered is designated as Auction 73--700 MHz Band. In the event that 
any licenses, including alternative licenses, are offered in contingent 
subsequent bidding, that will be designated as Auction 76.
iii. Bidding Methodology
    55. The bidding methodology for Auction 73 will be simultaneous 
multiple round (SMR) bidding for the A, B, D, and E Block licenses and 
an auction design with hierarchical package bidding (HPB) for the C 
Block licenses. The Commission will conduct Auctions 73 and 76 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. All telephone calls 
are recorded.
iv. Pre-Auction Dates and Deadlines
    56. The following dates and deadlines apply:

Auction Seminar........................  November 20, 2007.
Auction 73 and 76 Short-Form             November 19, 2007; 12 noon ET.
 Application (FCC Form 175) Filing
 Window Opens.
Auction 73 and 76 Short-Form             December 3, 2007; prior to 6 p.m. ET.
 Application (FCC Form 175) Filing
 Window Deadline.
Auction 73 Upfront Payments (via wire    December 28, 2007; 6 p.m. ET.
 transfer).
Mock Auction...........................  January 18, 2008.
Auction 73 Begins......................  January 24, 2008.
 

    57. If contingent subsequent bidding is necessary, the Bureau 
intends to announce the start date for Auction 76 and the deadline for 
additional upfront payments within five business days after the end of 
bidding in Auction 73. The Bureau expects that Auction 76 would begin 
within three weeks of that announcement.
v. Requirements for Participation in Auction 73 and 76
    58. Those wishing to participate in Auction 73 and 76 (should any 
subsequent auction become necessary), must: (1) For Auction 73, submit 
a short-form application (FCC Form 175) electronically prior to 6 p.m. 
ET, December 3, 2007, following the electronic filing procedures set 
forth in Attachment D to the Auctions 73 and 76 Procedures Public 
Notice; (2) for Auction 76, submit short-form applications (FCC Form 
175) electronically prior to 6 p.m. ET, December 3, 2007, for each 
auction following the electronic filing procedures set forth in 
Attachments D and E to the Auctions 73 and 76 Procedures Public Notice. 
Bidding in Auction 76 is open only to applicants that qualify to 
participate in Auction 73, and that comply with all of the requirements 
for participating in Auction 76, including submitting a separate short-
form application; (3) for Auction 73, submit a sufficient upfront 
payment and an FCC Remittance Advice Form (FCC Form 159) by 6 p.m. ET, 
December 28, 2007, following the procedures and instructions set forth 
in Attachment F to the Auctions 73 and 76 Procedures Public Notice; (4) 
for Auction 76 (if necessary), submit a sufficient upfront payment and 
an FCC Remittance Advice Form (FCC Form 159) by the deadline to be 
announced following the end of bidding in Auction 73; and (5) comply 
with all provisions outlined in this Public Notice and applicable 
Commission rules.

D. Other Issues Raised by Commenters

    59. Two commenters raised issues that are unrelated to those raised 
in the 700 MHz Auction Public Notice. One commenter proposes that the 
Commission should require that all licenses offered in Auction 73 be 
made available to public safety personnel for priority use during 
critical emergencies. The commenter also suggests that such a 
requirement be considered in the event of a contingent auction, if any. 
Another commenter urges the Commission to require applicants to 
disclose on their short-form applications whether winning the licenses 
they have selected would cause their spectrum holdings to exceed 70 MHz 
of spectrum in the markets of the selected licenses. In the event that 
any applicants indicate that their spectrum holdings would exceed this 
amount, the commenter proposed that their short-form applications 
should be dismissed before the commencement of Auction 73. The 
commenter also requests that the Commission investigate alleged 
violations of the Commission's ex parte rules by a wireless company 
concerning policy on the open platform provisions for C Block licenses, 
and proposes excluding that company from Auction 73 as a possible 
sanction for violating the Commission's rules.
    60. These issues are outside the scope of this non-rulemaking 
proceeding, which is confined to establishing competitive bidding 
procedures for Auction 73. The Bureau notes that some of these issues 
have been presented to the Commission in petitions for reconsideration 
of the 700 MHz Second Report and Order and will be addressed in that 
proceeding.

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

    61. Entities seeking licenses available in Auction 73 must file a 
short-form application electronically via the FCC Auction System prior 
to 6 p.m. ET on December 3, 2007, following the procedures prescribed 
in Attachment D to the Auctions 73 and 76 Procedures Public Notice. 
Applicants filing a short-form application are subject to the 
Commission's anti-collusion rules beginning on the deadline for filing. 
For Auctions 73 and 76, applicants filing a short-form application for 
Auction 73 will remain subject to the Commission's anti-collusion rules 
through the

[[Page 62367]]

completion of Auction 76, if conducted. 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. Applicants should read the 
instructions set forth in Attachment D to the Auctions 73 and 76 
Procedures Public Notice carefully and should consult 26 the 
Commission's rules to ensure that all the information that is required 
under the Commission's rules is included with their short-form 
applications.
    62. Entities seeking licenses that may be offered in Auction 76, if 
Auction 76 is conducted, must file electronically via the FCC Auction 
System prior to 6 p.m. ET on December 3, 2007 both a short-form 
application for Auction 73, following the procedures prescribed in 
Attachment D to the Auctions 73 and 76 Procedures Public Notice, and an 
abbreviated short-form application for Auction 76, following the 
procedures prescribed in Attachment E to the Auctions 73 and 76 
Procedures Public Notice. Applicants filing short-form applications for 
both Auctions 73 and 76 are subject to the Commission's anti-collusion 
rules beginning on the deadline for filing both applications.
    63. To streamline the application process, other than license 
selection requirements, all relevant information for the application to 
participate in Auction 76 must be submitted as part of the application 
to participate in Auction 73. The Auction 76 abbreviated application 
will request--and will accept--only information that the FCC Auction 
System requires in order to enable applicants to submit license 
selections for Auction 76. For example, applicants seeking to submit 
information regarding bidding agreements with respect to licenses 
offered in Auction 76 will not be able to access the bidding agreement 
screens that are usually part of the short-form application in the 
Auction 76 abbreviated application. Instead, such applicants must 
submit information regarding those agreements as part of their Auction 
73 short-form application.
    64. To comply with FCC Auction System requirements, however, 
applicants will be required to repeat some information submitted in 
their Auction 73 application, e.g., their FCC Registration Number 
(FRN), their name and address, certification of the form's contents, 
etc. As noted in the procedures for filing the abbreviated short-form 
application for Auction 76, applicants must provide the same 
information submitted in their application for Auction 73 as they 
provide in their Auction 76 application. Most importantly, if an entity 
wishes to submit a short-form application for Auction 76, it must do so 
using the same FRN that it uses for its short-form application for 
Auction 73. In addition, the same person must certify both 
applications, as the certification applies to information submitted in 
both applications.
    65. An entity may not submit more than one short-form application 
for Auction 73. Similarly, an entity may not submit more than one 
short-form application for Auction 76. If a party submits multiple 
short-form applications for either Auction 73 or Auction 76, only one 
application for each will be accepted for filing.
    66. Applicants also should note that submission of a short-form 
application (and any amendments thereto) 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. Applicants are not permitted to make major modifications to 
their applications; such impermissible changes include a change of the 
certifying official to the application. 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
    67. A bidding credit represents the amount by which a bidder's 
winning bid will be discounted. For Auction 73 and Auction 76, 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; and (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.
    68. 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.
    69. 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 for 
Auction 73 to establish that it satisfies the applicable eligibility 
requirement. An applicant's disclosure of this information in the 
short-form application for Auction 73 will become part of the 
applicant's Auction 76 application, in the event the Commission 
conducts Auction 76. Accordingly, applicants are not required--and will 
not be able to--submit this information in their abbreviated Auction 76 
application. Applicants claiming eligibility as a designated entity in 
Auction 73 and Auction 76 should review carefully the CSEA/Part 1 
Report and Order, 71 FR 6992, February 10, 2006, the Designated Entity 
Second Report and Order, 71 FR 26245, May 5, 2006, and the Order on 
Reconsideration of the Designated Entity Second Report and Order, 71 FR 
34272, June 14, 2006. In that connection, the Commission adopted rules 
governing eligibility for designated entity benefits in the Designated 
Entity Second Report and Order. The Commission's rules regarding 
applicants seeking eligibility for designated entity benefits require 
the disclosure of: (1) All parties with which the applicant has entered 
into arrangements for the lease or resale (including wholesale 
agreements) of any of the capacity of any of the applicant's spectrum; 
and (2) the gross revenues, separately and in the aggregate, of 
entities with which the applicant has an attributable material 
relationship, as defined in Sec.  1.2110(b)(3)(iv)(B).
    70. The Commission has adopted a narrow exemption from the 
attribution rule for the officers and directors of a rural telephone 
cooperative pursuant to which the gross revenues of the affiliates of 
the cooperative's officers and directors are not attributed to the 
applicant. An applicant (or controlling interest) seeking to claim this 
exemption must include in its short-form application a certification 
that it is validly organized under the most

[[Page 62368]]

closely applicable organizing statute for a cooperative, and that such 
organization is reflected in its articles of incorporation, bylaws, 
and/or other relevant organic documents. Applicants seeking to claim 
this exemption must meet all of the conditions specified in Sec.  
1.2110(b)(3)(iii) of the Commission's rules. Additional guidance on 
completing the FCC Form 175 to claim this exemption may be found in 
Attachment D to the Auctions 73 and 76 Procedures Public Notice.
ii. Tribal Lands Bidding Credit
    71. To encourage the growth of wireless services in federally 
recognized tribal lands, the Commission has implemented a tribal lands 
bidding credit. Applicants do not provide information regarding tribal 
lands bidding credits on their FCC Form 175 short-form applications. 
Instead, winning bidders may apply for the tribal lands bidding credit 
after the auction when they file their FCC Form 601 long-form 
applications.
iii. Installment Payments
    72. Installment payment plans will not be available in Auction 73 
or in Auction 76.

B. License Selection

    73. An applicant must select the initially offered licenses on 
which it wants to bid individually or as part of a pre-defined package 
in Auction 73 from the Eligible Licenses list on its short-form 
application for Auction 73. An applicant interested in bidding on 
licenses in the contingent subsequent auction must select those 
licenses from the Eligible Licenses list on its short-form application 
for Auction 76. Applicants will be able to bid on pre-defined packages 
of initially offered C Block licenses and alternative C2 Block 
licenses, if offered in subsequent bidding, pursuant to the package 
bidding procedures, only if they have selected all the individual 
licenses that comprise the relevant package on their respective short-
form applications.
    74. To assist applicants in identifying licenses of interest that 
will be available in Auctions 73 and 76, FCC Form 175 will include a 
filtering mechanism that allows an applicant to filter the Eligible 
Licenses list. 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.
    75. Applicants will not be able to change their license selections 
for either Auction 73 or Auction 76 after the short-form application 
filing deadline. Applicants interested in participating in Auctions 73 
and 76 must have selected license(s) available in the respective 
auction by the short-form application deadline. Applicants must confirm 
their license selections before the deadline for submitting FCC Form 
175. The FCC Auction System will not accept bids from an applicant on 
individual licenses that the applicant has not selected on its FCC Form 
175. In addition, the FCC Auction System will not accept bids from an 
applicant on a pre-defined hierarchical package unless the applicant 
selected on its FCC Form 175 all the individual licenses that comprise 
the package.

C. Disclosure of Bidding Arrangements

    76. Applicants will be required to identify in their short-form 
application for Auction 73 all parties with whom they have entered into 
any agreements, arrangements, or understandings of any kind relating to 
the licenses being auctioned in Auctions 73 and 76, including any 
agreements relating to post-auction market structure. The agreements 
identified in the short-form application for Auction 73 will become 
part of the applicant's Auction 76 application, in the event the 31 
Commission conducts Auction 76. Accordingly, applicants are not 
required--and will not be able to--disclose bidding agreements in their 
abbreviated Auction 76 application.
    77. 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 to participate in Auction 73, 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 an 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.
    78. 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. 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 Req