Closed Auction of Broadcast Construction Permits Scheduled for July 20, 2010; Notice and Filing Requirements, Minimum Opening Bids, Upfront Payments, and Other Procedures for Auction 88, 22792-22804 [2010-10155]
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Federal Register / Vol. 75, No. 83 / Friday, April 30, 2010 / Notices
factors (e.g., geographical areas and
professional affiliations).
Dated: April 22, 2010.
Vanessa T. Vu,
Director, EPA Science Advisory Board Staff
Office.
[FR Doc. 2010–10135 Filed 4–29–10; 8:45 am]
BILLING CODE 6560–50–P
FEDERAL COMMUNICATIONS
COMMISSION
[AU Docket No. 10–31; DA 10–524]
Closed Auction of Broadcast
Construction Permits Scheduled for
July 20, 2010; Notice and Filing
Requirements, Minimum Opening Bids,
Upfront Payments, and Other
Procedures for Auction 88
wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1
AGENCY: Federal Communications
Commission.
ACTION: Notice.
Monday through Thursday and from 8
a.m. to 11:30 a.m. ET on Friday in the
FCC Reference Information Center, 445
12th Street, SW., Room CY–A257,
Washington, DC 20554. The Auction 88
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,
using document number DA 10–524 for
the Auction 88 Procedures Public
Notice. The Auction 88 Procedures
Public Notice and related documents are
also available on the Internet at the
Commission’s Web site: https://
wireless.fcc.gov/auctions/88/.
I. General Information
A. Introduction
1. The Wireless Telecommunications
SUMMARY: This document announces the Bureau and the Media Bureau
(collectively, the Bureaus) announce the
procedures and minimum opening bids
procedures and minimum opening bid
for the upcoming auction of identified
Broadcast construction permits (Auction amounts for the upcoming closed
auction of certain broadcast AM, FM,
88). This document is intended to
familiarize prospective bidders with the and FM Translator construction permits.
This auction, which is designated as
procedures and minimum opening bids
Auction 88, is scheduled to commence
for the auction.
on July 20, 2010. Auction 88 is a closed
DATES: Applications to participate in
Auction 88 must be filed prior to 6 p.m. auction; only those entities listed in
Attachment A of the Auction 88
Eastern Time (ET) on May 13, 2010.
Procedures Public Notice will be eligible
Bidding for construction permits in
Auction 88 is scheduled to begin on July to participate in this auction. On
February 4, 2010, the Bureaus released
20, 2010.
a public notice seeking comment on
FOR FURTHER INFORMATION CONTACT:
competitive bidding procedures to be
Wireless Telecommunications Bureau,
used in Auction 88. Interested parties
Auctions and Spectrum Access Division:
submitted six comments and one reply
For legal questions: Lynne Milne or
comment in response to the Auction 88
Howard Davenport at (202) 418–0660.
Comment Public Notice, 75 FR 8070,
For general auction questions: Jeff
Feb. 23, 2010.
Crooks at (202) 418–0660 or Linda
Sanderson at (717) 338–2868. Media
B. Construction Permits in Auction 88
Bureau, Audio Division: For licensing
2. Auction 88 will offer construction
information and service rule questions:
permits for 13 commercial full-power
Lisa Scanlan or Tom Nessinger at (202)
FM stations, one commercial FM
418–2700. To request materials in
translator station, and one commercial
accessible formats (Braille, large print,
AM station as listed in Attachment A of
electronic files or audio format) for
the Auction 88 Procedures Public
people with disabilities, send an e-mail
Notice. The Bureaus explained that, due
to fcc504@fcc.gov or call the Consumer
to a database error, the channel for the
and Governmental Affairs Bureau at
Rosendale, New York, FM allotment
(202) 418–0530 or (202) 418–0432
(construction permit MM–FM750–
(TTY).
273A) was listed in Attachment A to the
Auction 88 Comment Public Notice as
SUPPLEMENTARY INFORMATION: This is a
Channel 273A, when in fact the correct
summary of the Auction 88 Procedures
channel (as reflected in Attachment A of
Public Notice, which was released on
the Auction 88 Procedures Public
March 31, 2010. The complete text of
Notice) is Channel 255A at Rosendale.
the Auction 88 Procedures Public
Accordingly, the winning bidder for the
Notice, including attachments, as well
Rosendale permit will be required to
as related Commission documents, are
amend its application to specify
available for public inspection and
operation on Channel 255. In Auction
copying from 8 a.m. to 4:30 p.m. ET
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88, the construction permit will be
referred to as MM–FM750–255A.
Despite commenter suggestions that the
Commission should postpone
conducting any auction for a permit for
the FM Channel 251A allotment at
Santa Isabel, Puerto Rico, on the basis
of uncertainties concerning technical
issues that may pose difficulties in
implementing broadcast operations on
this channel, the Bureaus will offer this
permit in Auction 88.
3. Attachment A of the Auction 88
Procedures Public Notice identifies the
closed groups of mutually exclusive
applications for each construction
permit in this auction. Four applicants
notified the Bureaus that changes to the
applicant’s name occurred after the
original construction permit application
had been filed. Notwithstanding
notification of such a change through
paper-filed application amendments,
the Commission databases were never
updated to reflect the new applicant
name. Consequently, these applicants
were listed under the original applicant
name in the Auction 88 Comment
Public Notice. Attachment A of the
Auction 88 Procedures Public Notice
reflects the name changes for the
following four applicants: (i) BBK
Broadcasting, Inc. to Radio Plus, Inc.,
(ii) Directel Inc. to SCHC Lubbock
Application, Inc., (iii) Music Express
Broadcasting, Inc. to Music Express
Broadcasting Corp., and (iv) Rosen
Broadcasting, Inc. to CHET–5
Broadcasting, L.P.
4. An applicant listed in Attachment
A of the Auction 88 Procedures Public
Notice may become qualified to bid only
if it meets the filing, qualification and
payment requirements. Each qualified
bidder will be eligible to bid on only
those construction permits specified for
that qualified bidder in Attachment A of
the Auction 88 Procedures Public
Notice. All applicants within these
groups of mutually exclusive
applications (MX groups) are directly
mutually exclusive with one another;
therefore no more than one construction
permit will be awarded for each MX
group.
i. Dismissal of Applications for Failure
To Submit FRN
5. The Auction 88 Comment Public
Notice established a deadline for the
submission to the Commission of an
FCC Registration Number (FRN) by each
applicant, and warned of
disqualification from participation in
the auction and dismissal of any
application where the applicant failed
to provide its FRN by the deadline on
March 12, 2010. Attachment B of the
Auction 88 Procedures Public Notice
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lists applications that were dismissed as
a result of the applicant’s failure to
submit the requested FRN by the
specified deadline.
6. Due to these dismissals, some
applications no longer were mutually
exclusive with other applications and
are included in Attachment C of the
Auction 88 Procedures Public Notice.
The removal of applications in some
cases has resulted in the removal of
entire MX groups from the auction.
Specifically, the failure by an applicant
to submit its FRN by the specified
deadline resulted in the removal from
this auction of two MX groups: An MX
group for an AM station at Lansing/
South Hill, New York (construction
permit MM–AM041–750) and an MX
group for an FM translator at
Manahawkin/Warren Grove, New Jersey
(construction permit MM–FMT010–
273).
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ii. Dismissal of Applications for Failure
To Submit Required Section 307(b)
Information
7. AM applications in each of the two
Indiana MX groups originally scheduled
for this auction proposed to serve
different communities. In order to make
the evaluation required by 47 U.S.C.
307(b), the Media Bureau directed each
applicant in closed MX group
MM–AM039–640 and MX group
MM–AM040–1230 to submit section
307(b) information. Attachment B of the
Auction 88 Procedures Public Notice
lists applications that no longer will be
included in Auction 88 as a result of the
applicant’s failure to submit information
needed for determinations required by
section 307(b).
8. With respect to MX group MM–
AM039–640, only three applicants
submitted Section 307(b) showings.
Having found no dispositive section
307(b) preference for either of the
communities specified, these three
applicants will be included in Auction
88 as MX group MM–AM039–640. With
respect to MX group MM–AM040–1230,
one applicant submitted a timely
section 307(b) showing. Therefore, the
engineering proposal for this
construction permit no longer was
mutually exclusive with other
application engineering proposals and is
listed as a singleton in Attachment C of
the Auction 88 Procedures Public
Notice. The Media Bureau dismissed the
short-form applications (FCC Form 175)
of the remaining five applicants in the
MX group. All six MX group MM–
AM040–1230 applications were
removed from Auction 88.
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C. Rules and Disclaimers
i. Relevant Authority
9. Prospective applicants must
familiarize themselves thoroughly with
the Commission’s general competitive
bidding rules, including recent
amendments and clarifications, as well
as Commission decisions in proceedings
regarding competitive bidding
procedures, application requirements,
broadcast service rules and obligations
of Commission licensees. It is the
responsibility of all applicants to remain
current with all Commission rules and
with all public notices pertaining to this
auction. The terms contained in the
Commission’s rules, relevant orders,
and public notices are not negotiable.
The Commission may amend or
supplement information contained in its
public notices at any time.
ii. Prohibited Communications and
Compliance With Antitrust Laws
10. To ensure the competitiveness of
the auction process, 47 CFR 1.2105(c)
prohibits auction applicants 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 Form 175) as parties
with whom they have entered into
agreements pursuant to 47 CFR
1.2105(a)(2)(viii).
a. Entities Subject to Section 1.2105
11. Unless applicants have identified
each other on their short-form
applications seeking to participate in a
Commission auction as parties with
whom they have entered into
agreements under 47 CFR
1.2105(a)(2)(viii), applicants for any of
the same geographic license areas must
affirmatively avoid all communications
with or disclosures to each other that
affect or have the potential to affect bids
or bidding strategy. In some instances,
this prohibition extends to
communications regarding the postauction market structure. This
prohibition applies to all applicants
regardless of whether such applicants
become qualified bidders or actually
bid. 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., Greenwood, Arkansas,
Channel 268A, MM–FM744–268A). In
Auction 88, the rule would apply to
applicants designated in Attachment A
of the Auction 88 Procedures Public
Notice for any of the same allotments or
permits.
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12. Applicants are also reminded that,
for purposes of this prohibition on
certain communications, 47 CFR
1.2105(c)(7)(i) defines applicant as
including all officers and directors of
the entity submitting a short-form
application to participate in the auction,
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. For
example, where an individual served as
an officer for two or more applicants,
the Bureaus have found that the bids
and bidding strategies of one applicant
are necessarily conveyed to the other
applicant, and, absent a disclosed
bidding agreement, an apparent
violation of 47 CFR 1.2105(c) occurs.
13. Individuals and entities subject to
47 CFR 1.2105(c) 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.
Moreover, Auction 88 applicants are
encouraged not to use the same
individual as an authorized bidder. A
violation of 47 CFR 1.2105(c) 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 47 CFR
1.2105(c).
b. Prohibition Applies Until Down
Payment Deadline
14. 47 CFR 1.2105(c)’s prohibition on
certain communications begins at the
short-form application filing deadline
and ends at the down payment deadline
after the auction, which will be
announced in a future public notice.
c. Prohibited Communications
15. Applicants should note that they
must not communicate directly or
indirectly about bids or bidding strategy
to other applicants in this auction. 47
CFR 1.2105(c) prohibits not only a
communication about an applicant’s
own bids or bidding strategy, but also a
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communication of another applicant’s
bids or bidding strategy. While 47 CFR
1.2105(c) does 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.
16. 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.
Applicants are hereby placed on notice
that public disclosure of information
relating to bids, or bidding strategies, or
to post-auction market structures may
violate 47 CFR 1.2105(c), including an
applicant’s use of the Commission’s
bidding system or a statement to the
press, financial analyst or others.
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d. Disclosure of Bidding Agreements
and Arrangements
17. 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 applications. If parties agree
in principle on all material terms prior
to the short-form application filing
deadline, each party to the agreement
must identify the other party or parties
to the agreement on its short-form
application under 47 CFR 1.2105(c),
even if the agreement has not been
reduced to writing. If the parties have
not agreed in principle by the shortform 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
application filing deadline.
e. Section 1.2105(c) Certification
18. By electronically submitting a
short-form application, each applicant
in Auction 88 certifies its compliance
with 47 CFR 1.2105(c) and 73.5002.
However, the Bureaus caution that
merely filing a certifying statement as
part of an application will not outweigh
specific evidence that a prohibited
communication has occurred, nor will it
preclude the initiation of an
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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 47 CFR
1.2105(c) may be subject to sanctions.
f. Duty To Report Prohibited
Communications: Reporting Procedure
19. 47 CFR 1.2105(c)(6) provides that
any applicant that makes or receives a
communication that appears to violate
47 CFR 1.2105(c) 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 has 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.
20. To maintain the accuracy and
completeness of information furnished
in its pending application and to notify
the Commission of any substantial
change that may be of decisional
significance to that application, an
applicant is required by 47 CFR 1.65 to
report to the Commission any
communication the applicant has made
to or received from another applicant
after the short-form application filing
deadline that affects or has the potential
to affect bids or bidding strategy, unless
such communication is made to or
received from a party to an agreement
identified under 47 CFR
1.2105(a)(2)(viii).
21. 47 CFR 1.65(a) and 1.2105(c)
require applicants in competitive
bidding proceedings to furnish
additional or corrected information
within five days of a significant
occurrence, or to amend their short-form
applications no more than five days
after the applicant becomes aware of the
need for amendment. A party reporting
any communication pursuant to 47 CFR
1.65, 1.2105(a)(2), or 1.2105(c)(6) must
take care to ensure that any reports of
prohibited communications do not
themselves give rise to a violation of 47
CFR 1.2105(c). For example, a party’s
report of a prohibited communication
could violate the rule by communicating
prohibited information to other
applicants through the use of
Commission filing procedures that
would allow such materials to be made
available for public inspection.
22. To minimize the risk of
inadvertent dissemination of
information in such reports, any reports
required by 47 CFR 1.2105(c) must be
filed consistent with the instructions set
forth in the Auction 88 Procedures
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Public Notice. For Auction 88, such
reports should be filed with the Chief of
the Auctions and Spectrum Access
Division, Wireless Telecommunications
Bureau, by the most expeditious means
available. Specifically, any such report
should be submitted by e-mail at the
following address: auction88@fcc.gov,
or delivered to the following address:
Margaret W. Wiener, Chief, Auctions
and Spectrum Access Division, Wireless
Telecommunications Bureau, Federal
Communications Commission, 445 12th
Street, SW., Room 6423, Washington,
DC 20554.
23. A party seeking to report such
prohibited communications should
consider submitting its report with a
request that the report or portions of the
submission be withheld from public
inspection pursuant to 47 CFR 0.459.
Such filers must have a cover page that
prominently displays that confidential
treatment is sought for the document,
covering all of the material to which the
request applies. Such parties also are
encouraged to coordinate with the
Auctions and Spectrum Access Division
staff if they have any questions about
the procedures for submitting such
reports.
g. Winning Bidders Must Disclose
Terms of Agreements
24. 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,
understanding, or other arrangement
entered into relating to the competitive
bidding process. Applicants must be
aware that failure to comply with the
Commission’s rules can result in
enforcement action.
h. Antitrust Laws
25. 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 47 CFR
1.2105(c) 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 submitted a
short-form application. 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
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auctions, among other sanctions. See 47
CFR 1.2109(d).
iii. Due Diligence
26. The burden of due diligence is on
the auction applicant. Potential
applicants are reminded that they are
solely responsible for investigating and
evaluating all technical and marketplace
factors that may have a bearing on the
value of the construction permits for
broadcast facilities they are seeking in
this auction. It is each applicant’s
responsibility to assure itself that, if it
wins a construction permit in this
auction, it will be able to build and
operate facilities in accordance with the
Commission’s rules. The Commission
does not represent or warrant that
licenses or permits offered are suitable
for any particular service, nor does a
Commission construction permit or
license constitute a guarantee of
business success.
iv. Use of Integrated Spectrum Auction
System
27. The Commission will make
available a browser-based bidding
system to allow bidders to participate in
Auction 88 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. Environmental Review Requirements
28. Permittees or 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 broadcast facility
is a Federal action and the permittee or
licensee for each such facility must
comply with the Commission’s
environmental rules, 47 CFR 1.1301–
1.1319.
D. Auction Specifics
i. Auction Start Date
29. Bidding in Auction 88 will begin
on Tuesday, July 20, 2010. The initial
schedule for bidding will be announced
by public notice at least one week before
the start of the auction. Unless
otherwise announced, bidding on all
construction permits will be conducted
on each business day until bidding has
stopped on all construction permits.
ii. Bidding Methodology
30. The bidding methodology for
Auction 88 will be simultaneous
multiple round (SMR) bidding. The
Commission will conduct this auction
over the Internet using the FCC Auction
System, and telephonic bidding will be
available as well. Qualified bidders are
permitted to bid electronically via the
Internet or by telephone. All telephone
calls are recorded.
iii. Pre-Auction Dates and Deadlines
31. The following dates and deadlines
apply:
Auction Tutorial Available (via Internet) ..............................................................................................
Short-Form Application (FCC Form 175):
Filing Window Opens .....................................................................................................................
Short-Form Application (FCC Form 175):
Filing Window Deadline .................................................................................................................
Upfront Payments (via wire transfer) .............................................................................................
Mock Auction ...................................................................................................................................
Auction Begins .................................................................................................................................
II. Short-Form Application (FCC Form
175) Requirements
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A. General Information Regarding
Short-Form Applications
32. 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. Each applicant must
take seriously its duties and
responsibilities and carefully determine
before filing an application that the
applicant has the legal, technical and
financial resources to participate in
Auction 88, as well as construct and
operate a broadcast station if the auction
applicant becomes a licensee as a result
of its participation in this auction.
Eligibility to participate in bidding is
based on the applicants’ short-form
applications and certifications under
penalty of perjury, as well as their
upfront payments.
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33. All applicants for AM stations
listed in Attachment A of the Auction
88 Procedures Public Notice previously
filed short-form applications in
response to the Supplemental Terre
Haute Window Notice. All applicants
for FM stations listed in Attachment A
of the Auction 88 Procedures Public
Notice previously filed long-form
applications. All entities and
individuals seeking construction
permits in Auction 88 are required to
file a new short-form application
electronically via the FCC Auction
System prior to 6 p.m. ET on May 13,
2010, following the procedures
prescribed in Attachment D of the
Auction 88 Procedures Public Notice,
even if the applicant had previously
filed a short-form application in
response to the Supplemental Terre
Haute Window Notice or a long-form
application.
34. Applicants bear full responsibility
for submitting accurate, complete and
timely short-form applications. All
applicants must certify on their short-
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May 4, 2010.
May 4, 2010; 12 noon ET.
May 13, 2010; prior to 6 p.m. ET.
June 17, 2010; 6 p.m. ET.
July 16, 2010.
July 20, 2010.
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 of the Auction 88 Procedures Public
Notice carefully and should consult the
Commission’s rules to ensure that, in
addition to the materials, all the
information that is required under the
Commission’s rules is included with
their short-form applications. Auction
88 applicants are reminded that they are
not permitted by 47 CFR 1.2105(b) to
make major modifications to their
applications as initially filed (whether
long-form applications by applicants for
FM stations or short-form applications
by applicants for the AM station),
including any change of their
construction permit(s), any change of
control of the applicant, or any change
to claim eligibility for a higher
percentage of bidding credit).
35. Applicants also should note that
submission of a short-form application
(and any amendments thereto)
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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.
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B. Construction Permits in Short-Form
Application
36. Auction 88 will resolve pending
closed groups of mutually exclusive
applications. Participation in this
auction is limited to those applicants
and applications identified in
Attachment A of the Auction 88
Procedures Public Notice. Qualifying
applicants will be eligible to bid only on
those construction permits for which
the applicant’s application is designated
in the particular MX group specified in
Attachment A of the Auction 88
Procedures Public Notice. Therefore,
applicants will not select permits when
filing the FCC Form 175.
C. New Entrant Bidding Credit
37. The Commission adopted a tiered
New Entrant Bidding Credit for
broadcast auction applicants with no, or
very few, other media interests. The
interests of the applicant, and of any
individuals or entities with an
attributable interest in the applicant, in
other media of mass communications
are considered when determining an
applicant’s eligibility for the New
Entrant Bidding Credit. In Auction 88,
the bidder’s attributable interests are
determined as of the short-form
application filing deadline. 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. Prospective
bidders are reminded, however, that
events occurring after the short-form
filing deadline, such as the acquisition
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of attributable interests in media of mass
communications, may cause
diminishment or loss of the bidding
credit, and must be reported
immediately.
38. Under traditional broadcast
attribution rules, such as 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.
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.
39. Bidders are also reminded that, by
the New Entrant Bidding Credit
Reconsideration Order, 64 FR 44856,
Aug. 18, 1999, 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.
40. In the Diversity Order, 73 FR
28361, May 16, 2008, the Commission
relaxed the equity/debt plus (EDP)
attribution standard, to allow for higher
investment opportunities in entities
meeting the definition of eligible
entities. An eligible entity is defined in
Note 2(i) of 47 CFR 73.3555. Pursuant to
the Diversity Order, the Commission
will now allow the holder of an equity
or debt interest in the applicant to
exceed the above-noted 33 percent
threshold without triggering attribution
provided (1) the combined equity and
debt in the eligible entity is less than 50
percent; or (2) the total debt in the
eligible entity does not exceed 80
percent of the asset value, and the
interest holder does not hold any equity
interest, option, or promise to acquire
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an equity interest in the eligible entity
or any related entity.
41. Generally, media interests will be
attributable for purposes of the New
Entrant Bidding Credit to the same
extent that such other media interests
are considered attributable for purposes
of the broadcast multiple ownership
rules. However, attributable interests
held by a winning bidder in existing
low power television, television
translator or FM translator facilities will
not be counted among the 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), and includes full service
noncommercial educational stations, on
both reserved and nonreserved
channels.
i. Application Requirements
42. In addition to the ownership
information required pursuant to 47
CFR 1.2112, applicants seeking a New
Entrant Bidding Credit are required to
establish on their short-form
applications that they satisfy the
eligibility requirements to qualify for
the bidding credit. In those cases, 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 has any attributable
interests in more than three media of
mass communications, and must
identify and describe such media of
mass communications.
ii. Bidding Credits
43. Applicants that qualify for the
New Entrant Bidding Credit, as
specified in the applicable rule, are
eligible for a bidding credit that
represents the amount by which a
bidder’s winning bid is discounted. The
size of a New Entrant Bidding Credit
depends on the number of ownership
interests in other media of mass
communications that are attributable to
the bidder-entity and its attributable
interest-holders: (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
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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; and (3) no bidding
credit will be given if any of the
commonly owned mass media facilities
serve the same area as the broadcast
station proposed in the auction, 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.
44. To the extent that one commenter
suggested that the criteria for the new
entrant bidding credit be modified for
Auction 88 with a request that the
Bureaus allow a bidding credit for any
applicant with no other broadcast
facilities, the Bureaus are unable to
adopt any such revision of existing
bidding credit rules, that already
provide that broadcast auction
applicants with no attributable interests
in media of mass communications may
seek a 35 percent bidding credit, or to
adopt new bidding credits based on
other criteria. The Bureaus will
implement for this auction the broadcast
bidding credit criteria as adopted by the
Commission in 47 CFR 73.5007–
73.5008.
45. 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 under 47 CFR
73.5007(c) 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.
D. Disclosure of Bidding Arrangements
46. Applicants will be required to
identify in their short-form application
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.
47. 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
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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 an agreement by the
short-form application filing deadline, it
should not include the names of parties
to the discussions on its application and
may not continue such discussions with
any applicants after the deadline.
48. After the filing of short-form
applications, the Commission’s rules do
not prohibit a party holding a noncontrolling, 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 in
accordance with 47 CFR 1.2105(c)(4)(i),
(ii) 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 47 CFR
1.2105(c) does not prohibit non-auctionrelated 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. Compliance with the
disclosure requirements of 47 CFR
1.2105(c) will not insulate a party from
enforcement of the antitrust laws.
E. Ownership Disclosure Requirements
49. The ownership disclosure
standards for the short-form application
are prescribed in 47 CFR 1.2105 and
1.2112. Specifically, in completing the
short-form application, all applicants
will be required to fully disclose
information on the real party- or partiesin-interest and ownership structure of
the applicant, including both direct and
indirect ownership interests of 10
percent or more. Each applicant is
responsible for information submitted in
its short-form application being
complete and accurate.
50. For Auction 88, the ownership
information must conform, in all
material respects, to the ownership
information appearing on the
applicant’s previously-filed long-form
application (FM and FM translator
applicants) or short-form application
(AM applicants). Applicants are
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cautioned that the long-form application
will be considered newly filed
according to 47 CFR 1.2105(b)(2) and
73.3573(a)(1) if the information
submitted on the electronic short-form
application reflects that there has been
a change of control. In such a case, the
applicant will not be eligible to
participate in the auction. Accordingly,
each applicant should carefully review
any information automatically entered
in its short-form application to confirm
that it is complete and accurate as of the
deadline for filing the short-form
application.
F. Provisions Regarding Former and
Current Defaulters
51. Current defaulters or delinquents
are not eligible to participate in Auction
88, but former defaulters or delinquents
can participate so long as they are
otherwise qualified and, make upfront
payments that are fifty percent more
than the normal upfront payment
amounts. An applicant is considered a
current defaulter or a current delinquent
when it, any of its affiliates, any of its
controlling interests, or any of the
affiliates of its controlling interests, are
in default on any payment for any
Commission construction permit or
license (including a down payment) or
are delinquent on any non-tax debt
owed to any Federal agency as of the
filing deadline for short-form
applications. An applicant is considered
a former defaulter or a former
delinquent when it, any of its affiliates,
any of its controlling interests, or any of
the affiliates of its controlling interests,
have defaulted on any Commission
construction permit or license or been
delinquent on any non-tax debt owed to
any Federal agency, but have since
remedied all such defaults and cured all
of the outstanding non-tax
delinquencies.
52. On the short-form application, an
applicant must certify under penalty of
perjury that it, its affiliates, its
controlling interests, and the affiliates of
its controlling interests, as defined by 47
CFR 1.2110 currently are not in default
on any payment for a Commission
construction permit or license
(including down payments) and that it
is not currently delinquent on any nontax debt owed to any Federal agency.
Each applicant must also state under
penalty of perjury whether it, its
affiliates, its controlling interests, and
the affiliates of its controlling interests,
have ever been in default on any
Commission construction permit or
license or have ever been delinquent on
any non-tax debt owed to any Federal
agency. Prospective applicants are
reminded that submission of a false
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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.
These statements and certifications are
prerequisites to submitting an
application to participate in an FCC
auction.
53. Applicants are encouraged to
review the Bureaus’ previous guidance
on default and delinquency disclosure
requirements in the context of the shortform 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 47 CFR 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. Parties
are also encouraged to consult with the
Commission’s Office of Managing
Director or the Wireless
Telecommunications Bureau’s Auctions
and Spectrum Access Division staff if
they have any questions about default
and delinquency disclosure
requirements.
54. The Commission considers
outstanding debts owed to the United
States Government, in any amount, to be
a serious matter. The Commission
adopted rules, including a provision
referred to as the red light rule, that
implement the Commission’s
obligations under the Debt Collection
Improvement Act of 1996, which
governs the collection of claims owed to
the United States. Under the red light
rule, the Commission will not process
applications and other requests for
benefits filed by parties that have
outstanding debts owed to the
Commission. In the same rulemaking
order, the Commission explicitly
declared, however, that the
Commission’s competitive bidding rules
are not affected by the red light rule. As
a consequence, the Commission’s
adoption of the red light rule does not
alter the applicability of any of the
Commission’s competitive bidding
rules, including the provisions and
certifications of 47 CFR 1.2105 and
1.2106, with regard to current and
former defaults or delinquencies.
55. Applicants are reminded,
however, that the Commission’s Red
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Light Display System, which provides
information regarding debts currently
owed to the Commission, may not be
determinative of an auction applicant’s
ability to comply with the default and
delinquency disclosure requirements of
47 CFR 1.2105. Thus, while the red light
rule ultimately may prevent the
processing of long-form applications by
auction winners, an auction applicant’s
lack of current red light status is not
necessarily determinative of its
eligibility to participate in an auction or
of its upfront payment obligation.
56. Moreover, prospective applicants
in Auction 88 should note that any longform applications filed after the close of
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 longform 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).
G. Optional Applicant Status
Identification
57. Applicants owned by members of
minority groups and/or women, as
defined in 47 CFR 1.2110(c)(3), and
rural telephone companies, as defined
in 47 CFR 1.2110(c)(4), may identify
themselves regarding this status in
filling out their short-form applications.
This optional applicant status
information is collected for statistical
purposes only and assists the
Commission in monitoring the
participation in its auctions of
designated entities, defined as small
businesses, businesses owned by
members of minority groups and/or
women, and rural telephone companies.
H. Minor Modifications to Short-Form
Applications
58. After the deadline for filing initial
applications, 47 CFR 1.2105(b) specifies
that an Auction 88 applicant is
permitted to make only minor changes
to its application. Permissible minor
changes include, among other things,
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. An applicant is not
permitted to make a major modification
to its application (e.g., change control of
the applicant, change the certifying
official, or claim eligibility for a higher
percentage of bidding credit) after the
initial application filing deadline. Thus,
any change in control of an applicant,
resulting from a merger, for example,
will be considered a major modification
to the applicant’s application, which
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will consequently be dismissed. In this
regard, the Bureaus reiterated that, even
if an applicant’s short-form application
is dismissed, the applicant would
remain subject to the communication
prohibitions of 47 CFR 1.2105(c) until
the down payment deadline, which will
be established after the auction closes.
59. Moreover, after the filing window
has closed, ISAS will not permit
applicants to make certain changes,
such as the applicant’s legal
classification. Applicants also may not
change the community of license prior
to auction. While one commenter’s
request for a change in the community
of license from New Holstein,
Wisconsin, to Chilton, Wisconsin is not
procedurally proper at this time, the
winning bidder for FM Channel 225A
will have the opportunity, when it files
its post-auction FCC Form 301
application, to propose a new
community of license, as long as the
proposed change is mutually exclusive
with the allotment and would represent
a preferential arrangement of allotments.
60. If an applicant wishes to make
permissible minor changes to its shortform application, such changes should
be made electronically to its short-form
application using the FCC Auction
System whenever possible. Applicants
are reminded to 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, submission date, and a unique file
number.
61. An applicant cannot use the FCC
Auction System outside of the initial
and resubmission filing windows to
make changes to its short-form
application other than administrative
changes (e.g. changing certain contact
information or the name of an
authorized bidder). If other permissible
minor changes need to be made outside
of these windows, the applicant must
submit a letter briefly summarizing the
changes and subsequently update its
short-form application in ISAS once the
system is available. Any letter
describing changes to an applicant’s
short-form application should be
submitted by e-mail to the following
address: auction88@fcc.gov. The e-mail
summarizing the changes must include
a subject or caption referring to Auction
88 and the name of the applicant.
62. 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
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duly authorized employee, if the
applicant is a corporation; (4) 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.
63. Applicants must not submit
application-specific material through
the Commission’s Electronic Comment
Filing System which was used for
submitting comments regarding Auction
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I. Maintaining Current Information in
Short-Form Applications
64. 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. Changes that cause a loss of
or reduction in the percentage of
bidding credit specified on the
originally submitted application must
be reported immediately. For example,
if ownership changes result in the
attribution of new interest holders that
affect the applicant’s qualifications for a
new entrant bidding credit, such
information must be clearly stated in the
applicant’s amendment. Events
occurring after the application filing
deadline, such as the acquisition of
attributable interests in media of mass
communications, may also cause
diminishment or loss of the bidding
credit, and 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 application.
65. After the application filing
deadline, applicants may make only
minor changes to their applications.
Applicants must click on the SUBMIT
button in the FCC Auction System for
any changes to be submitted and
considered by the Commission. If a
submission in compliance with 47 CFR
1.65 is needed outside of the initial and
resubmission filing windows, applicants
must submit a brief letter summarizing
the changes in accordance with the
instructions specified in the Auction 88
Procedures Public Notice.
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III. Pre-Auction Procedures
A. Online Auction Tutorial—Available
May 4, 2010
66. On Tuesday, May 4, 2010, the
Commission will post an educational
auction tutorial on the Auction 88 Web
page for prospective bidders to
familiarize themselves with the auction
process. This online tutorial will
provide information about pre-auction
procedures, completing short-form
applications, auction conduct, the FCC
Auction Bidding System, auction rules,
and broadcast services rules. The
tutorial will also provide an avenue to
ask FCC staff questions about the
auction, auction procedures, filing
requirements, and other matters related
to this auction.
67. The auction tutorial will be
accessible from the FCC’s Auction 88
Web page at https://wireless.fcc.gov/
auctions/88/ through an Auction
Tutorial link. Once posted, this tutorial
will remain available for reference in
connection with the procedures
outlined in the Auction 88 Procedures
Public Notice.
B. Short-Form Applications—Due Prior
to 6 p.m. ET on May 13, 2010
68. In order to be eligible to bid in this
auction, applicants must first follow the
procedures set forth in Attachment D of
the Auction 88 Procedures Public Notice
to submit a short-form application (FCC
Form 175) electronically via the FCC
Auction System. This short-form
application must be submitted through
the FCC Auction System prior to 6 p.m.
ET on May 13, 2010. Late applications
will not be accepted. An applicant
always must click on the SUBMIT
button on the Certify & Submit screen to
successfully submit its FCC Form 175
and any modification; otherwise the
application or changes to the
application will not be received or
reviewed.
C. Application Processing and Minor
Corrections
69. After the deadline for filing FCC
Form 175 applications, the Commission
will process all timely submitted
applications to determine which are
complete, and subsequently will issue a
public notice identifying (1) those
applications that are complete; (2) those
applications that are rejected; and (3)
those applications that are incomplete
because of minor defects that may be
corrected. The public notice will
include the deadline for resubmitting
corrected applications.
70. After the application filing
deadline on May 13, 2010, applicants
continue to be able to make only minor
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corrections to their applications.
Applicants will not be permitted to
make major modifications to their
applications (e.g., change control of the
applicant, change the certifying official,
or claim eligibility for a higher
percentage of bidding credit).
71. Applicants should be aware the
Commission staff will communicate
only with an applicant’s contact person
or certifying official, as designated on
the applicant’s short-form application,
unless the applicant’s certifying official
or contact person notifies the
Commission in writing that applicant’s
counsel or other representative is
authorized to speak on its behalf. Such
authorizations may be sent by e-mail to
auction88@fcc.gov. In no event,
however, will the FCC send registration
materials to anyone other than the
contact person listed on the applicant’s
FCC Form 175 or respond to a request
for replacement registration materials
from anyone other than an authorized
bidder, contact person or certifying
official listed on the applicant’s FCC
Form 175.
D. Upfront Payments—Due June 17,
2010
72. In order to be eligible to bid in this
auction, applicants must submit an
upfront payment accompanied by an
FCC Remittance Advice Form (FCC
Form 159). The Bureaus note that all
applicants for permits must make an
upfront payment in order to qualify as
a bidder and obtain a permit, whether
or not any other applicant in their MX
groups becomes a qualified bidder. An
applicant must initiate the wire transfer
through its bank, authorizing the bank
to wire funds from the applicant’s
account to the Commission’s auction
payment lockbox bank, the U.S. Bank in
St. Louis, Missouri. After completing its
short-form application, an applicant
will have access to an electronic version
of the FCC Form 159 that can be printed
and sent by fax to U.S. Bank in St.
Louis, Missouri. All upfront payments
must be made as instructed in this
Public Notice and must be received in
the proper account at U.S. Bank before
6 p.m. ET on June 17, 2010.
i. Making Upfront Payments by Wire
Transfer
73. Wire transfer payments must be
received before 6 p.m. ET on June 17,
2010. No other payment method is
acceptable. The Commission will not
accept checks, credit cards, or
automated clearing house (ACH)
payments. To avoid untimely payments,
applicants should discuss arrangements
(including bank closing schedules) with
their bankers several days before they
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plan to make the wire transfer, and
allow sufficient time for the transfer to
be initiated and completed before the
deadline.
74. At least one hour before placing
the order for the wire transfer (but on
the same business day), applicants must
fax a completed FCC Form 159 (Revised
2/03) to U.S. Bank at (314) 418–4232.
On the fax cover sheet, applicants
should write Wire Transfer—Auction
Payment for Auction 88. In order to
meet the Commission’s upfront payment
deadline, an applicant’s payment must
be credited to the Commission’s account
for Auction 88 before the deadline. The
applicant is responsible for obtaining
confirmation from its financial
institution that U.S. Bank has timely
received its upfront payment and
deposited it in the proper account.
75. Please note the following
information regarding upfront
payments: (1) All payments must be
made in U.S. dollars; (2) all payments
must be made by wire transfer; (3)
upfront payments for Auction 88 go to
a lockbox number different from the
lockboxes used in previous FCC
auctions; and (4) failure to deliver a
sufficient upfront payment as instructed
by the specified deadline on June 17,
2010 will result in dismissal of the
short-form application and
disqualification from participation in
the auction.
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ii. FCC Form 159
76. A completed FCC Remittance
Advice Form (FCC Form 159, Revised 2/
03) must be faxed to U.S. Bank to
accompany each upfront payment.
Proper completion of FCC Form 159 is
critical to ensuring correct crediting of
upfront payments. Detailed instructions
for completion of FCC Form 159 are
included in Attachment E of the
Auction 88 Procedures Public Notice.
An electronic pre-filled version of the
FCC Form 159 is available after
submitting the FCC Form 175. Payers
using the pre-filled FCC Form 159 are
responsible for ensuring that all of the
information on the form, including
payment amounts, is accurate. The FCC
Form 159 can be completed
electronically, but must be filed with
U.S. Bank by fax.
iii. Upfront Payments and Bidding
Eligibility
77. Attachment A of the Auction 88
Procedures Public Notice sets forth
minimum opening bids and upfront
payments for permits being offered in
this auction. Applicants must make
upfront payments sufficient to obtain
bidding eligibility on the construction
permits on which they will bid. The
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amount of the upfront payment
determines a bidder’s initial bidding
eligibility, the maximum number of
bidding units on which a bidder may
place bids. In order to bid on a
particular construction permit, a
qualified bidder must be identified as an
applicant for the construction permit in
Attachment A of the Auction 88
Procedures Public Notice and must have
a current eligibility level that meets or
exceeds the number of bidding units
assigned to that construction permit. At
a minimum, therefore, an applicant’s
total upfront payment must be enough
to establish eligibility to bid on at least
one of the construction permits for
which it is identified as an applicant in
Attachment A of the Auction 88
Procedures Public Notice, or else the
applicant will not be eligible to
participate in the auction.
78. An applicant does not have to
make an upfront payment to cover all
construction permits for which it is
identified as an applicant in Attachment
A of the Auction 88 Procedures Public
Notice, but only enough to cover the
maximum number of bidding units that
are associated with construction permits
on which the bidder wishes to place
bids and hold provisionally winning
bids at any given time. Provisionally
winning bids are bids that would
become final winning bids if the auction
were to close after the given round.
79. Some commenters requested
reductions of minimum opening bids for
specific construction permits which
correspond to the specific upfront
payments proposed by the Bureaus in
the Auction 88 Comment Public Notice.
To the extent that the Bureaus reduced
minimum opening bid amounts, the
corresponding upfront payment amount
for that construction permit also was
reduced. With these exceptions, the
Bureaus adopted the upfront payments
and bidding units proposed for each
construction permit in Auction 88.
Upfront payment amounts and bidding
units are set forth in Attachment A of
the Auction 88 Procedures Public
Notice.
80. In calculating its upfront payment
amount, an applicant should determine
the maximum number of bidding units
on which it may wish to be active (bid
on or hold provisionally winning bids
on) in any single round, and submit an
upfront payment amount covering that
number of bidding units. In order to
make this calculation, an applicant
should add together the bidding units
for all construction permits on which it
seeks to be active in any given round.
Applicants should check their
calculations carefully, as there is no
provision for increasing a bidder’s
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eligibility after the upfront payment
deadline. Further, a qualified bidder’s
maximum eligibility will not exceed the
sum of the bidding units associated with
the total number of construction permits
identified for that applicant in
Attachment A of the Auction 88
Procedures Public Notice. In some cases,
a qualified bidder’s maximum eligibility
may be less than the amount of its
upfront payment because the qualified
bidder either has submitted an upfront
payment that exceeds the total amount
of bidding units associated with the
construction permits identified for that
applicant in Attachment A of the
Auction 88 Procedures Public Notice or
has previously been in default on a
Commission construction permit or
license or delinquent on non-tax debt
owed to a Federal agency.
81. As explained previously in the
Auction 88 Procedures Public Notice,
applicants that are former defaulters
must pay upfront payments 50 percent
greater than non-former defaulters. If an
applicant is a former defaulter, it must
calculate its upfront payment for all of
its identified construction permits by
multiplying the number of bidding units
on which it wishes to be active by 1.5.
In order to calculate the number of
bidding units to assign to former
defaulters, the Commission will divide
the upfront payment received by 1.5 and
round the result up to the nearest
bidding unit. If a former defaulter fails
to submit a sufficient upfront payment
to establish eligibility to bid on at least
one of the construction permits
designated for that applicant in
Attachment A of the Auction 88
Procedures Public Notice, the applicant
will not be eligible to participate in the
auction.
E. Auction Registration
82. Approximately ten days before the
auction, the Bureaus will issue a public
notice announcing all qualified bidders
for the auction. Qualified bidders are
those applicants with submitted FCC
Form 175 applications that are deemed
timely-filed, accurate, and complete,
provided that such applicants have
timely submitted an upfront payment
that is sufficient to qualify them to bid.
83. All qualified bidders are
automatically registered for the auction.
Registration materials will be
distributed prior to the auction by
overnight mail. The mailing will be sent
only to the contact person at the contact
address listed in the FCC Form 175 and
will include the SecurID® tokens that
will be required to place bids, the
Integrated Spectrum Auction System
(ISAS) Bidder’s Guide, and the Auction
Bidder Line phone number. Qualified
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bidders that do not receive this
registration mailing will not be able to
submit bids. Therefore, any qualified
bidder that has not received this mailing
by noon on Wednesday, July 14, 2010,
should call (717) 338–2868. Receipt of
this registration mailing is critical to
participating in the auction, and each
applicant is responsible for ensuring it
has received all of the registration
material.
84. In the event that SecurID® tokens
are lost or damaged, only a person who
has been designated as an authorized
bidder, the contact person, or the
certifying official on the applicant’s
short-form application may request
replacements. Qualified bidders
requiring the replacement of these items
must call Technical Support at (877)
480–3201, option nine; (202) 414–1250;
or (202) 414–1255 (TTY).
wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1
F. Remote Electronic Bidding
85. The Commission will conduct this
auction over the Internet, and
telephonic bidding will be available as
well. Only qualified bidders are
permitted to bid. Each applicant should
indicate its bidding preference—
electronic or telephonic—on its FCC
Form 175. In either case, each
authorized bidder must have its own
SecurID® token, which the Commission
will provide at no charge. Each
applicant with one authorized bidder
will be issued two SecurID® tokens,
while applicants with two or three
authorized bidders will be issued three
tokens. For security purposes, the
SecurID® tokens, the telephonic bidding
telephone number, and the Integrated
Spectrum Auction System (ISAS)
Bidder’s Guide are only mailed to the
contact person at the contact address
listed on the FCC Form 175. Each
SecurID® token is tailored to a specific
auction. SecurID® tokens issued for
other auctions or obtained from a source
other than the FCC will not work for
Auction 88.
G. Mock Auction—July 16, 2010
86. All qualified bidders will be
eligible to participate in a mock auction
on Friday, July 16, 2010. The mock
auction will enable qualified bidders to
become familiar with the FCC Auction
System prior to the auction.
Participation by all bidders is strongly
recommended. Details will be
announced by public notice.
IV. Auction Event
87. The first round of bidding for
Auction 88 will begin on Tuesday, July
20, 2010. The initial bidding schedule
will be announced in a public notice
listing the qualified bidders, which is to
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be released approximately 10 days
before the start of the auction.
A. Auction Structure
i. Simultaneous Multiple Round
Auction
88. All construction permits in
Auction 88 will be auctioned in a single
auction using the Commission’s
standard simultaneous multiple-round
auction format. This type of auction
offers every construction permit for bid
at the same time and consists of
successive bidding rounds in which
eligible bidders may place bids on
individual construction permits. A
bidder may bid on, and potentially win,
any number of construction permits.
Unless otherwise announced, bids will
be accepted on all construction permits
in each round of the auction until
bidding stops on every construction
permit.
ii. Eligibility and Activity Rules
89. The Bureaus will use upfront
payments to determine initial
(maximum) eligibility (as measured in
bidding units) for Auction 88. The
amount of the upfront payment
submitted by a bidder determines initial
bidding eligibility, the maximum
number of bidding units on which a
bidder may be active. As noted earlier,
each construction permit is assigned a
specific number of bidding units listed
in Attachment A of the Auction 88
Procedures Public Notice. Bidding units
for a given construction permit do not
change as prices rise during the auction.
A bidder’s upfront payment is not
attributed to specific construction
permits. Rather, a bidder may place bids
on any of the construction permits for
which it is designated an applicant in
Attachment A of the Auction 88
Procedures Public Notice, as long as the
total number of bidding units associated
with those construction permits does
not exceed its current eligibility.
Eligibility cannot be increased during
the auction; it can only remain the same
or decrease. Thus, in calculating its
upfront payment amount, an applicant
must determine the maximum number
of bidding units it may wish to bid on
or hold provisionally winning bids on
in any single round, and submit an
upfront payment amount covering that
total number of bidding units. At a
minimum, an applicant’s upfront
payment must cover the bidding units
for at least one of the construction
permits for which it is designated an
applicant in Attachment A of the
Auction 88 Procedures Public Notice.
The total upfront payment does not
affect the total dollar amount a bidder
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22801
may bid on any given construction
permit.
90. In order to ensure that an auction
closes within a reasonable period of
time, an activity rule requires bidders to
bid actively throughout the auction,
rather than wait until late in the auction
before participating. Bidders are
required to be active on a specific
percentage of their current bidding
eligibility during each round of the
auction.
91. A bidder’s activity level in a
round is the sum of the bidding units
associated with any construction
permits covered by new and
provisionally winning bids. A bidder is
considered active on a construction
permit in the current round if it is either
the provisionally winning bidder at the
end of the previous bidding round or if
it submits a bid in the current round.
92. The eligibility and activity rules
for Auction 88 require a bidder to be
active on 100 percent of its current
eligibility during each round of the
auction. That is, a bidder must either
place a bid or be a provisionally
winning bidder during each round of
the auction. Failure to maintain the
requisite activity level will result in the
use of an activity rule waiver, if any
remain, or a reduction in the bidder’s
eligibility, possibly curtailing or
eliminating the bidder’s ability to place
additional bids in the auction.
iii. Activity Rule Waivers
93. In Auction 88, each bidder in the
auction will be provided with three
activity rule waivers. It is important for
bidders to understand that applying a
waiver is irreversible. Once a bidder
submits a proactive waiver, the bidder
cannot unsubmit the waiver even if the
round has not yet ended.
iv. Auction Stopping Rules
94. For Auction 88, the Bureaus will
employ a simultaneous stopping rule
approach. A simultaneous stopping rule
means that all construction permits
remain available for bidding until
bidding closes simultaneously on all
construction permits. More specifically,
bidding will close simultaneously on all
construction permits after the first
round in which no bidder submits any
new bids or applies a proactive waiver.
The Bureaus also adopted alternative
versions of the simultaneous stopping
rule for Auction 88 as specified in the
Auction 88 Comment Public Notice. The
Bureaus retained the discretion to
exercise any of options with or without
prior announcement during the auction.
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v. Auction Delay, Suspension, or
Cancellation
95. By public notice or by
announcement during the auction, the
Bureaus may delay, suspend, or cancel
the auction in the event of natural
disaster, technical obstacle,
administrative or weather necessity,
evidence of an auction security breach
or unlawful bidding activity, or for any
other reason that affects the fair and
efficient conduct of competitive
bidding.
B. Bidding Procedures
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i. Round Structure
96. The initial schedule of bidding
rounds will be announced in the public
notice listing the qualified bidders,
which is released approximately 10
days before the start of the auction. Each
bidding round is followed by the release
of round results. Multiple bidding
rounds may be conducted in a given
day.
97. The Bureaus have the discretion to
change the bidding schedule in order to
foster an auction pace that reasonably
balances speed with the bidders’ need to
study round results and adjust their
bidding strategies. The Bureaus may
increase or decrease the amount of time
for the bidding rounds, the amount of
time between rounds, or the number of
rounds per day, depending upon
bidding activity and other factors.
ii. Reserve Price and Minimum Opening
Bids
98. There will be no reserve price for
the construction permits to be offered in
Auction 88. In the Auction 88 Comment
Public Notice, the Bureaus proposed
minimum opening bids and
corresponding upfront payments for the
permits being offered in this auction.
The Commission received several
comments requesting a reduction of the
proposed minimum opening bids for
specific construction permits in this
auction.
99. A commenter requested a
reduction from $25,000 to $7,500 of the
minimum opening bid for the FM
station construction permit for New
Holstein, Wisconsin, alleging difficulty
in finding transmitter sites. The Bureaus
agreed that some reduction in the
minimum opening bid was warranted
and reduced the minimum opening bid
for MM–FM755–225A to $15,000.
100. A commenter sought to postpone
any auction of the permit for Channel
251A at Santa Isabel, Puerto Rico.
Recognizing the technical challenges
that may be involved in implementing
a broadcast operation with this permit,
the Bureaus reduced the minimum
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opening bid for Channel 251A at Santa
Isabel to $25,000.
101. For the construction permits
listed in Attachment A of the Auction
88 Procedures Public Notice, the
Bureaus adopted the minimum opening
bid amounts proposed in the Auction 88
Comment Public Notice, with the
exception of the reduced minimum
opening bid amounts for the New
Holstein and Santa Isabel construction
permits. The specific minimum opening
bid amounts for the construction
permits available in Auction 88 are set
forth in Attachment A of the Auction 88
Procedures Public Notice.
iii. Bid Amounts
102. If a bidder has sufficient
eligibility to place a bid on the
particular construction permit, an
eligible bidder will be able to place a
bid on a given construction permit in
any of up to nine different amounts. The
FCC Auction System interface will list
the nine acceptable bid amounts for
each construction permit. In the event of
duplicate bid amounts due to rounding,
the FCC Auction System will omit the
duplicates and will list fewer acceptable
bid amounts for the license. The
Bureaus retained the discretion to
change, on a construction permit by
construction permit basis, the minimum
acceptable bid amounts, the minimum
acceptable bid percentage, the bid
increment percentage, and the number
of acceptable bid amounts if the Bureaus
determine that circumstances so dictate,
as well as the discretion to limit (a) the
amount by which a minimum
acceptable bid for a construction permit
may increase compared with the
corresponding provisionally winning
bid, and (b) the amount by which an
additional bid amount may increase
compared with the immediately
preceding acceptable bid amount.
iv. Provisionally Winning Bids
103. At the end of each bidding
round, a provisionally winning bid will
be determined based on the highest bid
amount received for each construction
permit. A provisionally winning bid
will remain the provisionally winning
bid until there is a higher bid on the
same construction permit at the close of
a subsequent round. Provisionally
winning bids at the end of the auction
become the winning bids. Bidders are
reminded that provisionally winning
bids count toward activity for purposes
of the activity rule.
104. In Auction 88, a random number
generator will be used to select a single
provisionally winning bid in the event
of identical high bid amounts being
submitted on a construction permit in a
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given round (i.e., tied bids) as described
in the Auction 88 Procedures Public
Notice.
v. Bidding
105. All bidding will take place
remotely either through the FCC
Auction System or by telephonic
bidding. There will be no on-site
bidding during Auction 88. Please note
that telephonic bid assistants are
required to use a script when entering
bids placed by telephone. Telephonic
bidders are therefore reminded to allow
sufficient time to bid by placing their
calls well in advance of the close of a
round. The length of a call to place a
telephonic bid may vary; please allow a
minimum of ten minutes.
106. A bidder’s ability to bid on
specific construction permits is
determined by two factors: (1) The
construction permits for which it is
designated an applicant in Attachment
A of the Auction 88 Procedures Public
Notice and (2) the bidder’s eligibility.
The bid submission screens will allow
bidders to submit bids on only those
construction permits designated for that
applicant in Attachment A of the
Auction 88 Procedures Public Notice.
107. In order to access the bidding
function of the FCC Auction System,
bidders must be logged in during the
bidding round using the passcode
generated by the SecurID® token and a
personal identification number created
by the bidder. Bidders are strongly
encouraged to print a round summary
for each round after they have
completed all of their activity for that
round.
108. If a bidder has sufficient
eligibility to place a bid on a particular
permit, an eligible bidder will be able in
each round to place bids on a given
construction permit in any of up to nine
pre-defined bid amounts. For each
construction permit, the FCC Auction
System will list the acceptable bid
amounts in a drop-down box. Bidders
use the drop-down box to select from
among the acceptable bid amounts. The
FCC Auction System also includes an
upload function that allows bidders to
upload text files containing bid
information.
109. Until a bid has been placed on
a construction permit, the minimum
acceptable bid amount for that
construction permit will be equal to its
minimum opening bid amount. Once
there are bids on a construction permit,
minimum acceptable bids for a
construction permit for the following
round will be determined as described
in the Auction 88 Procedures Public
Notice.
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110. During a round, an eligible
bidder may submit bids for as many
construction permits as it wishes
(providing that it is eligible to bid),
remove bids placed in the current
bidding round, or permanently reduce
eligibility. If a bidder submits multiple
bids for the same construction permit in
the same round, the system takes the
last bid entered as that bidder’s bid for
the round. Bidders should note that the
bidding units associated with
construction permits for which the
bidder has removed bids do not count
towards the bidder’s current activity.
vi. Bid Removal and Bid Withdrawal
111. In Auction 88, each bidder will
have the option of removing any bids
placed in a round provided that such
bids are removed before the close of that
bidding round. By using the remove
bids function in the FCC Auction
System, a bidder may effectively
unsubmit any bid placed within that
round. A bidder removing a bid placed
in the same round is not subject to
withdrawal payments. Removing a bid
will affect a bidder’s activity for the
round in which it is removed, i.e., a bid
that is removed does not count toward
bidding activity.
112. Once a round closes, a bidder
may no longer remove a bid. In Auction
88, bidders are prohibited from
withdrawing any bids after the round in
which bids were placed has closed.
Bidders are cautioned to select bid
amounts carefully because no bid
withdrawals will be allowed in Auction
88, even if a bid was mistakenly or
erroneously made.
wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1
vii. Round Results
113. Reports reflecting bidders’
identities for Auction 88 will be
available before and during the auction.
Thus, bidders will know in advance of
this auction the identities of the bidders
against which they are bidding.
114. Bids placed during a round will
not be made public until the conclusion
of that round. After a round closes, the
Bureaus will compile reports of all bids
placed, current provisionally winning
bids, new minimum acceptable bid
amounts for the following round,
whether the construction permit is FCC
held, and bidder eligibility status
(bidding eligibility and activity rule
waivers), and post the reports for public
access.
viii. Auction Announcements
115. The Commission will use auction
announcements to announce items such
as schedule changes. All auction
announcements will be available by
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clicking a link in the FCC Auction
System.
V. Post-Auction Procedures
116. Shortly after bidding has ended,
the Commission will issue a public
notice declaring the auction closed,
identifying the winning bidders, and
establishing the deadlines for
submitting down payments, final
payments, and the long-form
applications (FCC Forms 301 or 349).
A. Down Payments
117. Within ten business days after
release of the auction closing public
notice, each winning bidder must
submit sufficient funds (in addition to
its upfront payment) to bring its total
amount of money on deposit with the
Commission for Auction 88 to 20
percent of the net amount of its winning
bids (gross bids less any applicable new
entrant bidding credits).
B. Final Payments
118. Each winning bidder will be
required to submit the balance of the net
amount of its winning bids within ten
business days after the applicable
deadline for submitting down payments.
In a departure from the final payment
rule revision adopted for broadcast
auctions in the CSEA/Part 1 Report and
Order, 71 FR 6992, Feb. 10, 2006, a
commenter proposed that any winning
bidder with no other broadcast facilities
be allowed to delay payment of the
balance of its bid until the submission
of its long-form application. The
Bureaus are unable to modify this rule
which was established by the
Commission in a rulemaking
proceeding. The balance of the net
amount of each winning bid will be due
within ten business days after the
deadline for submitting down payments
for this auction.
C. Long-Form Application (FCC Forms
301 or 349)
119. The Commission’s rules
currently provide that within thirty days
after release of the auction closing
notice, winning bidders must
electronically submit a properly
completed long-form application (FCC
Form 301, Application for Construction
Permit for Commercial Broadcast
Station, or FCC Form 349, Application
for Authority to Construct or Make
Changes in an FM Translator or FM
Booster Station) and required exhibits
for each construction permit won
through Auction 88. Winning bidders
claiming new entrant bidding status
must include an exhibit demonstrating
their eligibility for the bidding credit in
accordance with 47 CFR 1.2112(b) and
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22803
73.5005. Further instructions on these
and other filing requirements will be
provided to winning bidders in the
auction closing public notice.
D. Default and Disqualification
120. Any winning bidder that defaults
or is disqualified after the close of the
auction (i.e., fails to remit the required
down payment within the prescribed
period of time, fails to submit a timely
long-form application, fails to make full
payment, or is otherwise disqualified)
will be subject to the payments
described in 47 CFR 1.2104(g)(2). The
payments include both a deficiency
payment, equal to the difference
between the amount of the bidder’s bid
and the amount of the winning bid the
next time a construction permit
covering the same spectrum is won in
an auction, plus an additional payment
equal to a percentage of the defaulter’s
bid or of the subsequent winning bid,
whichever is less.
121. The percentage of the applicable
bid to be assessed as an additional
payment for defaults in a particular
auction is established in advance of the
auction. The additional default payment
for this auction was set at twenty
percent of the applicable bid.
122. Finally, in the event of a default,
the Commission has the discretion to reauction the construction permit or offer
it to the next highest bidder (in
descending order) at its final bid
amount. In addition, if a default or
disqualification involves gross
misconduct, misrepresentation, or bad
faith by an applicant, the Commission
may declare the applicant and its
principals ineligible to bid in future
auctions, and may take any other action
that it deems necessary, including
institution of proceedings to revoke any
existing authorizations held by the
applicant.
E. Refund of Remaining Upfront
Payment Balance
123. After the auction, applicants that
are not winning bidders or are winning
bidders whose upfront payment
exceeded the total net amount of their
winning bids may be entitled to a
refund of some or all of their upfront
payment. All refunds will be returned to
the payer of record, as identified on the
FCC Form 159, unless the payer submits
written authorization instructing
otherwise. Bidders that drop out of the
auction completely (have exhausted all
of their activity rule waivers and have
no remaining bidding eligibility) may
request a refund of their upfront
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payments before the close of the
auction.
FEDERAL DEPOSIT INSURANCE
CORPORATION
William W. Huber,
Associate Chief, Auctions and Spectrum
Access Division, WTB, Federal
Communications Commission.
Update to Notice of Financial
Institutions for Which the Federal
Deposit Insurance Corporation Has
Been Appointed Either Receiver,
Liquidator, or Manager
[FR Doc. 2010–10155 Filed 4–29–10; 8:45 am]
BILLING CODE 6712–01–P
AGENCY: Federal Deposit Insurance
Corporation.
ACTION: Update listing of financial
institutions in liquidation.
SUMMARY: Notice is hereby given that
the Federal Deposit Insurance
Corporation (Corporation) has been
appointed the sole receiver for the
following financial institutions effective
as of the Date Closed as indicated in the
listing. This list (as updated from time
to time in the Federal Register) may be
relied upon as ‘‘of record’’ notice that the
Corporation has been appointed receiver
for purposes of the statement of policy
published in the July 2, 1992 issue of
the Federal Register (57 FR 29491). For
further information concerning the
identification of any institutions which
have been placed in liquidation, please
visit the Corporation Web site at https://
www.fdic.gov/bank/individual/failed/
banklist.html or contact the Manager of
Receivership Oversight in the
appropriate service center.
Dated: April 26, 2010.
Federal Deposit Insurance Corporation.
Valerie J. Best,
Assistant Executive Secretary.
INSTITUTIONS IN LIQUIDATION
[In alphabetical order]
FDIC Ref. No.
10218
10219
10220
10221
10222
10223
10224
...............................
...............................
...............................
...............................
...............................
...............................
...............................
Bank name
City
Amcore Bank, National Association .........................
Broadway Bank .........................................................
Citizens Bank and Trust Company of Chicago ........
Lincoln Park Savings Bank .......................................
New Century Bank ....................................................
Peotone Bank and Trust Company ..........................
Wheatland Bank ........................................................
Rockford ..........................
Chicago ...........................
Chicago ...........................
Chicago ...........................
Chicago ...........................
Peotone ...........................
Naperville ........................
[FR Doc. 2010–10159 Filed 4–29–10; 8:45 am]
BILLING CODE 6714–01–P
FEDERAL RESERVE SYSTEM
wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1
Formations of, Acquisitions by, and
Mergers of Bank Holding Companies
The companies listed in this notice
have applied to the Board for approval,
pursuant to the Bank Holding Company
Act of 1956 (12 U.S.C. 1841 et seq.)
(BHC Act), Regulation Y (12 CFR Part
225), and all other applicable statutes
and regulations to become a bank
holding company and/or to acquire the
assets or the ownership of, control of, or
the power to vote shares of a bank or
bank holding company and all of the
banks and nonbanking companies
owned by the bank holding company,
including the companies listed below.
The applications listed below, as well
as other related filings required by the
Board, are available for immediate
inspection at the Federal Reserve Bank
indicated. The applications also will be
available for inspection at the offices of
the Board of Governors. Interested
persons may express their views in
writing on the standards enumerated in
the BHC Act (12 U.S.C. 1842(c)). If the
proposal also involves the acquisition of
a nonbanking company, the review also
VerDate Mar<15>2010
13:41 Apr 29, 2010
Jkt 220001
includes whether the acquisition of the
nonbanking company complies with the
standards in section 4 of the BHC Act
(12 U.S.C. 1843). Unless otherwise
noted, nonbanking activities will be
conducted throughout the United States.
Additional information on all bank
holding companies may be obtained
from the National Information Center
website at www.ffiec.gov/nic/.
Unless otherwise noted, comments
regarding each of these applications
must be received at the Reserve Bank
indicated or the offices of the Board of
Governors not later than May 27, 2010.
A. Federal Reserve Bank of Dallas (E.
Ann Worthy, Vice President) 2200
North Pearl Street, Dallas, Texas 75201–
2272:
1. Independent Bank Group, Inc.,
McKinney, Texas; to acquire 100
percent of the voting shares of Town
Center Bank, Coppell, Texas.
Board of Governors of the Federal Reserve
System, April 27, 2010.
Robert deV. Frierson,
Deputy Secretary of the Board.
[FR Doc. 2010–10134 Filed 4–29–10; 8:45 am]
BILLING CODE 6210–01–S
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4/23/2010
4/23/2010
4/23/2010
4/23/2010
4/23/2010
4/23/2010
4/23/2010
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
[OMB Control No. 9000–0168; Docket 2010–
0083; Sequence 20]
Submission for OMB Review;
American Recovery and Reinvestment
Act—One-Time Reporting,
Compensation Requirements
AGENCIES: Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Withdrawal of Notice.
SUMMARY: The notice, OMB Control No.
9000–0168, American Recovery and
Reinvestment Act—One-time Reporting,
Compensation Requirements published
in the Federal Register is being
withdrawn and no longer is accepting
comments.
DATES:
April 30, 2010.
Mr.
Ernest Woodson, Procurement Analyst,
Contract Policy Branch, at telephone
(202) 501–3775 or via e-mail to
ernest.woodson@gsa.gov. Please cite
FOR FURTHER INFORMATION CONTACT:
E:\FR\FM\30APN1.SGM
30APN1
Agencies
[Federal Register Volume 75, Number 83 (Friday, April 30, 2010)]
[Notices]
[Pages 22792-22804]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-10155]
=======================================================================
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
[AU Docket No. 10-31; DA 10-524]
Closed Auction of Broadcast Construction Permits Scheduled for
July 20, 2010; Notice and Filing Requirements, Minimum Opening Bids,
Upfront Payments, and Other Procedures for Auction 88
AGENCY: Federal Communications Commission.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: This document announces the procedures and minimum opening
bids for the upcoming auction of identified Broadcast construction
permits (Auction 88). This document is intended to familiarize
prospective bidders with the procedures and minimum opening bids for
the auction.
DATES: Applications to participate in Auction 88 must be filed prior to
6 p.m. Eastern Time (ET) on May 13, 2010. Bidding for construction
permits in Auction 88 is scheduled to begin on July 20, 2010.
FOR FURTHER INFORMATION CONTACT: Wireless Telecommunications Bureau,
Auctions and Spectrum Access Division: For legal questions: Lynne Milne
or Howard Davenport at (202) 418-0660. For general auction questions:
Jeff Crooks at (202) 418-0660 or Linda Sanderson at (717) 338-2868.
Media Bureau, Audio Division: For licensing information and service
rule questions: Lisa Scanlan or Tom 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 88
Procedures Public Notice, which was released on March 31, 2010. The
complete text of the Auction 88 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. ET Monday
through Thursday and from 8 a.m. to 11:30 a.m. ET on Friday in the FCC
Reference Information Center, 445 12th Street, SW., Room CY-A257,
Washington, DC 20554. The Auction 88 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, using document number DA 10-524 for the Auction
88 Procedures Public Notice. The Auction 88 Procedures Public Notice
and related documents are also available on the Internet at the
Commission's Web site: https://wireless.fcc.gov/auctions/88/.
I. General Information
A. Introduction
1. The Wireless Telecommunications Bureau and the Media Bureau
(collectively, the Bureaus) announce the procedures and minimum opening
bid amounts for the upcoming closed auction of certain broadcast AM,
FM, and FM Translator construction permits. This auction, which is
designated as Auction 88, is scheduled to commence on July 20, 2010.
Auction 88 is a closed auction; only those entities listed in
Attachment A of the Auction 88 Procedures Public Notice will be
eligible to participate in this auction. On February 4, 2010, the
Bureaus released a public notice seeking comment on competitive bidding
procedures to be used in Auction 88. Interested parties submitted six
comments and one reply comment in response to the Auction 88 Comment
Public Notice, 75 FR 8070, Feb. 23, 2010.
B. Construction Permits in Auction 88
2. Auction 88 will offer construction permits for 13 commercial
full-power FM stations, one commercial FM translator station, and one
commercial AM station as listed in Attachment A of the Auction 88
Procedures Public Notice. The Bureaus explained that, due to a database
error, the channel for the Rosendale, New York, FM allotment
(construction permit MM-FM750-273A) was listed in Attachment A to the
Auction 88 Comment Public Notice as Channel 273A, when in fact the
correct channel (as reflected in Attachment A of the Auction 88
Procedures Public Notice) is Channel 255A at Rosendale. Accordingly,
the winning bidder for the Rosendale permit will be required to amend
its application to specify operation on Channel 255. In Auction 88, the
construction permit will be referred to as MM-FM750-255A. Despite
commenter suggestions that the Commission should postpone conducting
any auction for a permit for the FM Channel 251A allotment at Santa
Isabel, Puerto Rico, on the basis of uncertainties concerning technical
issues that may pose difficulties in implementing broadcast operations
on this channel, the Bureaus will offer this permit in Auction 88.
3. Attachment A of the Auction 88 Procedures Public Notice
identifies the closed groups of mutually exclusive applications for
each construction permit in this auction. Four applicants notified the
Bureaus that changes to the applicant's name occurred after the
original construction permit application had been filed.
Notwithstanding notification of such a change through paper-filed
application amendments, the Commission databases were never updated to
reflect the new applicant name. Consequently, these applicants were
listed under the original applicant name in the Auction 88 Comment
Public Notice. Attachment A of the Auction 88 Procedures Public Notice
reflects the name changes for the following four applicants: (i) BBK
Broadcasting, Inc. to Radio Plus, Inc., (ii) Directel Inc. to SCHC
Lubbock Application, Inc., (iii) Music Express Broadcasting, Inc. to
Music Express Broadcasting Corp., and (iv) Rosen Broadcasting, Inc. to
CHET-5 Broadcasting, L.P.
4. An applicant listed in Attachment A of the Auction 88 Procedures
Public Notice may become qualified to bid only if it meets the filing,
qualification and payment requirements. Each qualified bidder will be
eligible to bid on only those construction permits specified for that
qualified bidder in Attachment A of the Auction 88 Procedures Public
Notice. All applicants within these groups of mutually exclusive
applications (MX groups) are directly mutually exclusive with one
another; therefore no more than one construction permit will be awarded
for each MX group.
i. Dismissal of Applications for Failure To Submit FRN
5. The Auction 88 Comment Public Notice established a deadline for
the submission to the Commission of an FCC Registration Number (FRN) by
each applicant, and warned of disqualification from participation in
the auction and dismissal of any application where the applicant failed
to provide its FRN by the deadline on March 12, 2010. Attachment B of
the Auction 88 Procedures Public Notice
[[Page 22793]]
lists applications that were dismissed as a result of the applicant's
failure to submit the requested FRN by the specified deadline.
6. Due to these dismissals, some applications no longer were
mutually exclusive with other applications and are included in
Attachment C of the Auction 88 Procedures Public Notice. The removal of
applications in some cases has resulted in the removal of entire MX
groups from the auction. Specifically, the failure by an applicant to
submit its FRN by the specified deadline resulted in the removal from
this auction of two MX groups: An MX group for an AM station at
Lansing/South Hill, New York (construction permit MM-AM041-750) and an
MX group for an FM translator at Manahawkin/Warren Grove, New Jersey
(construction permit MM-FMT010-273).
ii. Dismissal of Applications for Failure To Submit Required Section
307(b) Information
7. AM applications in each of the two Indiana MX groups originally
scheduled for this auction proposed to serve different communities. In
order to make the evaluation required by 47 U.S.C. 307(b), the Media
Bureau directed each applicant in closed MX group MM-AM039-640 and MX
group MM-AM040-1230 to submit section 307(b) information. Attachment B
of the Auction 88 Procedures Public Notice lists applications that no
longer will be included in Auction 88 as a result of the applicant's
failure to submit information needed for determinations required by
section 307(b).
8. With respect to MX group MM-AM039-640, only three applicants
submitted Section 307(b) showings. Having found no dispositive section
307(b) preference for either of the communities specified, these three
applicants will be included in Auction 88 as MX group MM-AM039-640.
With respect to MX group MM-AM040-1230, one applicant submitted a
timely section 307(b) showing. Therefore, the engineering proposal for
this construction permit no longer was mutually exclusive with other
application engineering proposals and is listed as a singleton in
Attachment C of the Auction 88 Procedures Public Notice. The Media
Bureau dismissed the short-form applications (FCC Form 175) of the
remaining five applicants in the MX group. All six MX group MM-AM040-
1230 applications were removed from Auction 88.
C. Rules and Disclaimers
i. Relevant Authority
9. Prospective applicants must familiarize themselves thoroughly
with the Commission's general competitive bidding rules, including
recent amendments and clarifications, as well as Commission decisions
in proceedings regarding competitive bidding procedures, application
requirements, broadcast service rules and obligations of Commission
licensees. It is the responsibility of all applicants to remain current
with all Commission rules and with all public notices pertaining to
this auction. The terms contained in the Commission's rules, relevant
orders, and public notices are not negotiable. The Commission may amend
or supplement information contained in its public notices at any time.
ii. Prohibited Communications and Compliance With Antitrust Laws
10. To ensure the competitiveness of the auction process, 47 CFR
1.2105(c) prohibits auction applicants 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 Form
175) as parties with whom they have entered into agreements pursuant to
47 CFR 1.2105(a)(2)(viii).
a. Entities Subject to Section 1.2105
11. Unless applicants have identified each other on their short-
form applications seeking to participate in a Commission auction as
parties with whom they have entered into agreements under 47 CFR
1.2105(a)(2)(viii), applicants for any of the same geographic license
areas must affirmatively avoid all communications with or disclosures
to each other that affect or 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 applies to all applicants regardless of whether such
applicants become qualified bidders or actually bid. 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., Greenwood, Arkansas, Channel 268A, MM-FM744-268A). In
Auction 88, the rule would apply to applicants designated in Attachment
A of the Auction 88 Procedures Public Notice for any of the same
allotments or permits.
12. Applicants are also reminded that, for purposes of this
prohibition on certain communications, 47 CFR 1.2105(c)(7)(i) defines
applicant as including all officers and directors of the entity
submitting a short-form application to participate in the auction, 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. For example, where an individual served as an officer for
two or more applicants, the Bureaus have found that the bids and
bidding strategies of one applicant are necessarily conveyed to the
other applicant, and, absent a disclosed bidding agreement, an apparent
violation of 47 CFR 1.2105(c) occurs.
13. Individuals and entities subject to 47 CFR 1.2105(c) 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. Moreover,
Auction 88 applicants are encouraged not to use the same individual as
an authorized bidder. A violation of 47 CFR 1.2105(c) 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 47 CFR 1.2105(c).
b. Prohibition Applies Until Down Payment Deadline
14. 47 CFR 1.2105(c)'s prohibition on certain communications begins
at the short-form application filing deadline and ends at the down
payment deadline after the auction, which will be announced in a future
public notice.
c. Prohibited Communications
15. Applicants should note that they must not communicate directly
or indirectly about bids or bidding strategy to other applicants in
this auction. 47 CFR 1.2105(c) prohibits not only a communication about
an applicant's own bids or bidding strategy, but also a
[[Page 22794]]
communication of another applicant's bids or bidding strategy. While 47
CFR 1.2105(c) does 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.
16. 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. Applicants are
hereby placed on notice that public disclosure of information relating
to bids, or bidding strategies, or to post-auction market structures
may violate 47 CFR 1.2105(c), including an applicant's use of the
Commission's bidding system or a statement to the press, financial
analyst or others.
d. Disclosure of Bidding Agreements and Arrangements
17. 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 applications. If parties agree in
principle on all material terms prior to the short-form application
filing deadline, each party to the agreement must identify the other
party or parties to the agreement on its short-form application under
47 CFR 1.2105(c), even if the agreement has not been reduced to
writing. If the parties have not agreed in principle by the 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 application filing deadline.
e. Section 1.2105(c) Certification
18. By electronically submitting a short-form application, each
applicant in Auction 88 certifies its compliance with 47 CFR 1.2105(c)
and 73.5002. However, the Bureaus caution that merely filing a
certifying statement as part of an application will not outweigh
specific evidence that a prohibited communication 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 47 CFR 1.2105(c) may be
subject to sanctions.
f. Duty To Report Prohibited Communications: Reporting Procedure
19. 47 CFR 1.2105(c)(6) provides that any applicant that makes or
receives a communication that appears to violate 47 CFR 1.2105(c) 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 has 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.
20. To maintain the accuracy and completeness of information
furnished in its pending application and to notify the Commission of
any substantial change that may be of decisional significance to that
application, an applicant is required by 47 CFR 1.65 to report to the
Commission any communication the applicant has made to or received from
another applicant after the short-form application filing deadline that
affects or has the potential to affect bids or bidding strategy, unless
such communication is made to or received from a party to an agreement
identified under 47 CFR 1.2105(a)(2)(viii).
21. 47 CFR 1.65(a) and 1.2105(c) require applicants in competitive
bidding proceedings to furnish additional or corrected information
within five days of a significant occurrence, or to amend their short-
form applications no more than five days after the applicant becomes
aware of the need for amendment. A party reporting any communication
pursuant to 47 CFR 1.65, 1.2105(a)(2), or 1.2105(c)(6) must take care
to ensure that any reports of prohibited communications do not
themselves give rise to a violation of 47 CFR 1.2105(c). For example, a
party's report of a prohibited communication could violate the rule by
communicating prohibited information to other applicants through the
use of Commission filing procedures that would allow such materials to
be made available for public inspection.
22. To minimize the risk of inadvertent dissemination of
information in such reports, any reports required by 47 CFR 1.2105(c)
must be filed consistent with the instructions set forth in the Auction
88 Procedures Public Notice. For Auction 88, such reports should be
filed with the Chief of the Auctions and Spectrum Access Division,
Wireless Telecommunications Bureau, by the most expeditious means
available. Specifically, any such report should be submitted by e-mail
at the following address: auction88@fcc.gov, or delivered to the
following address: Margaret W. Wiener, Chief, Auctions and Spectrum
Access Division, Wireless Telecommunications Bureau, Federal
Communications Commission, 445 12th Street, SW., Room 6423, Washington,
DC 20554.
23. A party seeking to report such prohibited communications should
consider submitting its report with a request that the report or
portions of the submission be withheld from public inspection pursuant
to 47 CFR 0.459. Such filers must have a cover page that prominently
displays that confidential treatment is sought for the document,
covering all of the material to which the request applies. Such parties
also are encouraged to coordinate with the Auctions and Spectrum Access
Division staff if they have any questions about the procedures for
submitting such reports.
g. Winning Bidders Must Disclose Terms of Agreements
24. 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, understanding, or other arrangement
entered into relating to the competitive bidding process. Applicants
must be aware that failure to comply with the Commission's rules can
result in enforcement action.
h. Antitrust Laws
25. 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 47 CFR
1.2105(c) 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 submitted a short-form
application. 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
[[Page 22795]]
auctions, among other sanctions. See 47 CFR 1.2109(d).
iii. Due Diligence
26. The burden of due diligence is on the auction applicant.
Potential applicants are reminded that they are solely responsible for
investigating and evaluating all technical and marketplace factors that
may have a bearing on the value of the construction permits for
broadcast facilities they are seeking in this auction. It is each
applicant's responsibility to assure itself that, if it wins a
construction permit in this auction, it will be able to build and
operate facilities in accordance with the Commission's rules. The
Commission does not represent or warrant that licenses or permits
offered are suitable for any particular service, nor does a Commission
construction permit or license constitute a guarantee of business
success.
iv. Use of Integrated Spectrum Auction System
27. The Commission will make available a browser-based bidding
system to allow bidders to participate in Auction 88 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. Environmental Review Requirements
28. Permittees or 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 broadcast
facility is a Federal action and the permittee or licensee for each
such facility must comply with the Commission's environmental rules, 47
CFR 1.1301-1.1319.
D. Auction Specifics
i. Auction Start Date
29. Bidding in Auction 88 will begin on Tuesday, July 20, 2010. The
initial schedule for bidding will be announced by public notice at
least one week before the start of the auction. Unless otherwise
announced, bidding on all construction permits will be conducted on
each business day until bidding has stopped on all construction
permits.
ii. Bidding Methodology
30. The bidding methodology for Auction 88 will be simultaneous
multiple round (SMR) bidding. The Commission will conduct this auction
over the Internet using the FCC Auction System, and telephonic bidding
will be available as well. Qualified bidders are permitted to bid
electronically via the Internet or by telephone. All telephone calls
are recorded.
iii. Pre-Auction Dates and Deadlines
31. The following dates and deadlines apply:
Auction Tutorial Available (via Internet)... May 4, 2010.
Short-Form Application (FCC Form 175):
Filing Window Opens..................... May 4, 2010; 12 noon ET.
Short-Form Application (FCC Form 175):
Filing Window Deadline.................. May 13, 2010; prior to 6 p.m. ET.
Upfront Payments (via wire transfer).... June 17, 2010; 6 p.m. ET.
Mock Auction............................ July 16, 2010.
Auction Begins.......................... July 20, 2010.
II. Short-Form Application (FCC Form 175) Requirements
A. General Information Regarding Short-Form Applications
32. 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. Each applicant must take seriously its duties and
responsibilities and carefully determine before filing an application
that the applicant has the legal, technical and financial resources to
participate in Auction 88, as well as construct and operate a broadcast
station if the auction applicant becomes a licensee as a result of its
participation in this auction. Eligibility to participate in bidding is
based on the applicants' short-form applications and certifications
under penalty of perjury, as well as their upfront payments.
33. All applicants for AM stations listed in Attachment A of the
Auction 88 Procedures Public Notice previously filed short-form
applications in response to the Supplemental Terre Haute Window Notice.
All applicants for FM stations listed in Attachment A of the Auction 88
Procedures Public Notice previously filed long-form applications. All
entities and individuals seeking construction permits in Auction 88 are
required to file a new short-form application electronically via the
FCC Auction System prior to 6 p.m. ET on May 13, 2010, following the
procedures prescribed in Attachment D of the Auction 88 Procedures
Public Notice, even if the applicant had previously filed a short-form
application in response to the Supplemental Terre Haute Window Notice
or a long-form application.
34. 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 of the Auction 88 Procedures Public Notice carefully and
should consult the Commission's rules to ensure that, in addition to
the materials, all the information that is required under the
Commission's rules is included with their short-form applications.
Auction 88 applicants are reminded that they are not permitted by 47
CFR 1.2105(b) to make major modifications to their applications as
initially filed (whether long-form applications by applicants for FM
stations or short-form applications by applicants for the AM station),
including any change of their construction permit(s), any change of
control of the applicant, or any change to claim eligibility for a
higher percentage of bidding credit).
35. Applicants also should note that submission of a short-form
application (and any amendments thereto)
[[Page 22796]]
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.
B. Construction Permits in Short-Form Application
36. Auction 88 will resolve pending closed groups of mutually
exclusive applications. Participation in this auction is limited to
those applicants and applications identified in Attachment A of the
Auction 88 Procedures Public Notice. Qualifying applicants will be
eligible to bid only on those construction permits for which the
applicant's application is designated in the particular MX group
specified in Attachment A of the Auction 88 Procedures Public Notice.
Therefore, applicants will not select permits when filing the FCC Form
175.
C. New Entrant Bidding Credit
37. The Commission adopted a tiered New Entrant Bidding Credit for
broadcast auction applicants with no, or very few, other media
interests. The interests of the applicant, and of any individuals or
entities with an attributable interest in the applicant, in other media
of mass communications are considered when determining an applicant's
eligibility for the New Entrant Bidding Credit. In Auction 88, the
bidder's attributable interests are determined as of the short-form
application filing deadline. 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. 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.
38. Under traditional broadcast attribution rules, such as 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. 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.
39. Bidders are also reminded that, by the New Entrant Bidding
Credit Reconsideration Order, 64 FR 44856, Aug. 18, 1999, 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.
40. In the Diversity Order, 73 FR 28361, May 16, 2008, the
Commission relaxed the equity/debt plus (EDP) attribution standard, to
allow for higher investment opportunities in entities meeting the
definition of eligible entities. An eligible entity is defined in Note
2(i) of 47 CFR 73.3555. Pursuant to the Diversity Order, the Commission
will now allow the holder of an equity or debt interest in the
applicant to exceed the above-noted 33 percent threshold without
triggering attribution provided (1) the combined equity and debt in the
eligible entity is less than 50 percent; or (2) the total debt in the
eligible entity does not exceed 80 percent of the asset value, and the
interest holder does not hold any equity interest, option, or promise
to acquire an equity interest in the eligible entity or any related
entity.
41. Generally, media interests will be attributable for purposes of
the New Entrant Bidding Credit to the same extent that such other media
interests are considered attributable for purposes of the broadcast
multiple ownership rules. However, attributable interests held by a
winning bidder in existing low power television, television translator
or FM translator facilities will not be counted among the 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), and includes full service noncommercial educational
stations, on both reserved and nonreserved channels.
i. Application Requirements
42. In addition to the ownership information required pursuant to
47 CFR 1.2112, applicants seeking a New Entrant Bidding Credit are
required to establish on their short-form applications that they
satisfy the eligibility requirements to qualify for the bidding credit.
In those cases, 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 has any attributable interests in
more than three media of mass communications, and must identify and
describe such media of mass communications.
ii. Bidding Credits
43. Applicants that qualify for the New Entrant Bidding Credit, as
specified in the applicable rule, are eligible for a bidding credit
that represents the amount by which a bidder's winning bid is
discounted. The size of a New Entrant Bidding Credit depends on the
number of ownership interests in other media of mass communications
that are attributable to the bidder-entity and its attributable
interest-holders: (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
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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; and (3) no bidding credit
will be given if any of the commonly owned mass media facilities serve
the same area as the broadcast station proposed in the auction, 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.
44. To the extent that one commenter suggested that the criteria
for the new entrant bidding credit be modified for Auction 88 with a
request that the Bureaus allow a bidding credit for any applicant with
no other broadcast facilities, the Bureaus are unable to adopt any such
revision of existing bidding credit rules, that already provide that
broadcast auction applicants with no attributable interests in media of
mass communications may seek a 35 percent bidding credit, or to adopt
new bidding credits based on other criteria. The Bureaus will implement
for this auction the broadcast bidding credit criteria as adopted by
the Commission in 47 CFR 73.5007-73.5008.
45. 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 under 47 CFR 73.5007(c) 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.
D. Disclosure of Bidding Arrangements
46. Applicants will be required to identify in their short-form
application 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.
47. 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 an agreement by the short-form application filing deadline,
it should not include the names of parties to the discussions on its
application and may not continue such discussions with any applicants
after the deadline.
48. 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 in
accordance with 47 CFR 1.2105(c)(4)(i), (ii) 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 47 CFR 1.2105(c) does 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. Compliance with the disclosure requirements
of 47 CFR 1.2105(c) will not insulate a party from enforcement of the
antitrust laws.
E. Ownership Disclosure Requirements
49. The ownership disclosure standards for the short-form
application are prescribed in 47 CFR 1.2105 and 1.2112. Specifically,
in completing the short-form application, all applicants will be
required to fully disclose information on the real party- or parties-
in-interest and ownership structure of the applicant, including both
direct and indirect ownership interests of 10 percent or more. Each
applicant is responsible for information submitted in its short-form
application being complete and accurate.
50. For Auction 88, the ownership information must conform, in all
material respects, to the ownership information appearing on the
applicant's previously-filed long-form application (FM and FM
translator applicants) or short-form application (AM applicants).
Applicants are cautioned that the long-form application will be
considered newly filed according to 47 CFR 1.2105(b)(2) and
73.3573(a)(1) if the information submitted on the electronic short-form
application reflects that there has been a change of control. In such a
case, the applicant will not be eligible to participate in the auction.
Accordingly, each applicant should carefully review any information
automatically entered in its short-form application to confirm that it
is complete and accurate as of the deadline for filing the short-form
application.
F. Provisions Regarding Former and Current Defaulters
51. Current defaulters or delinquents are not eligible to
participate in Auction 88, but former defaulters or delinquents can
participate so long as they are otherwise qualified and, make upfront
payments that are fifty percent more than the normal upfront payment
amounts. An applicant is considered a current defaulter or a current
delinquent when it, any of its affiliates, any of its controlling
interests, or any of the affiliates of its controlling interests, are
in default on any payment for any Commission construction permit or
license (including a down payment) or are delinquent on any non-tax
debt owed to any Federal agency as of the filing deadline for short-
form applications. An applicant is considered a former defaulter or a
former delinquent when it, any of its affiliates, any of its
controlling interests, or any of the affiliates of its controlling
interests, have defaulted on any Commission construction permit or
license or been delinquent on any non-tax debt owed to any Federal
agency, but have since remedied all such defaults and cured all of the
outstanding non-tax delinquencies.
52. On the short-form application, an applicant must certify under
penalty of perjury that it, its affiliates, its controlling interests,
and the affiliates of its controlling interests, as defined by 47 CFR
1.2110 currently are not in default on any payment for a Commission
construction permit or license (including down payments) and that it is
not currently delinquent on any non-tax debt owed to any Federal
agency. Each applicant must also state under penalty of perjury whether
it, its affiliates, its controlling interests, and the affiliates of
its controlling interests, have ever been in default on any Commission
construction permit or license or have ever been delinquent on any non-
tax debt owed to any Federal agency. Prospective applicants are
reminded that submission of a false
[[Page 22798]]
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. These statements and certifications are prerequisites to
submitting an application to participate in an FCC auction.
53. Applicants are encouraged to review the Bureaus' 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 47 CFR 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. Parties are also encouraged to consult
with the Commission's Office of Managing Director or the Wireless
Telecommunications Bureau's Auctions and Spectrum Access Division staff
if they have any questions about default and delinquency disclosure
requirements.
54. The Commission considers outstanding debts owed to the United
States Government, in any amount, to be a serious matter. The
Commission adopted rules, including a provision referred to as the red
light rule, that implement the Commission's obligations under the Debt
Collection Improvement Act of 1996, which governs the collection of
claims owed to the United States. Under the red light rule, the
Commission will not process applications and other requests for
benefits filed by parties that have outstanding debts owed to the
Commission. In the same rulemaking order, the Commission explicitly
declared, however, that the Commission's competitive bidding rules are
not affected by the red light rule. As a consequence, the Commission's
adoption of the red light rule does not alter the applicability of any
of the Commission's competitive bidding rules, including the provisions
and certifications of 47 CFR 1.2105 and 1.2106, with regard to current
and former defaults or delinquencies.
55. Applicants are reminded, however, that the Commission's Red
Light Display System, which provides information regarding debts
currently owed to the Commission, may not be determinative of an
auction applicant's ability to comply with the default and delinquency
disclosure requirements of 47 CFR 1.2105. Thus, while the red light
rule ultimately may prevent the processing of long-form applications by
auction winners, an auction applicant's lack of current red light
status is not necessarily determinative of its eligibility to
participate in an auction or of its upfront payment obligation.
56. Moreover, prospective applicants in Auction 88 should note that
any long-form applications filed after the close of 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).
G. Optional Applicant Status Identification
57. Applicants owned by members of minority groups and/or women, as
defined in 47 CFR 1.2110(c)(3), and rural telephone companies, as
defined in 47 CFR 1.2110(c)(4), may identify themselves regarding this
status in filling out their short-form applications. This optional
applicant status information is collected for statistical purposes only
and assists the Commission in monitoring the participation in its
auctions of designated entities, defined as small businesses,
businesses owned by members of minority groups and/or women, and rural
telephone companies.
H. Minor Modifications to Short-Form Applications
58. After the deadline for filing initial applications, 47 CFR
1.2105(b) specifies that an Auction 88 applicant is permitted to make
only minor changes to its application. Permissible minor changes
include, among other things, 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. An applicant is
not permitted to make a major modification to its application (e.g.,
change control of the applicant, change the certifying official, or
claim eligibility for a higher percentage of bidding credit) after the
initial application filing deadline. Thus, any change in control of an
applicant, resulting from a merger, for example, will be considered a
major modification to the applicant's application, which will
consequently be dismissed. In this regard, the Bureaus reiterated that,
even if an applicant's short-form application is dismissed, the
applicant would remain subject to the communication prohibitions of 47
CFR 1.2105(c) until the down payment deadline, which will be
established after the auction closes.
59. Moreover, after the filing window has closed, ISAS will not
permit applicants to make certain changes, such as the applicant's
legal classification. Applicants also may not change the community of
license prior to auction. While one commenter's request for a change in
the community of license from New Holstein, Wisconsin, to Chilton,
Wisconsin is not procedurally proper at this time, the winning bidder
for FM Channel 225A will have the opportunity, when it files its post-
auction FCC Form 301 application, to propose a new community of
license, as long as the proposed change is mutually exclusive with the
allotment and would represent a preferential arrangement of allotments.
60. If an applicant wishes to make permissible minor changes to its
short-form application, such changes should be made electronically to
its short-form application using the FCC Auction System whenever
possible. Applicants are reminded to 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,
submission date, and a unique file number.
61. An applicant cannot use the FCC Auction System outside of the
initial and resubmission filing windows to make changes to its short-
form application other than administrative changes (e.g. changing
certain contact information or the name of an authorized bidder). If
other permissible minor changes need to be made outside of these
windows, the applicant must submit a letter briefly summarizing the
changes and subsequently update its short-form application in ISAS once
the system is available. Any letter describing changes to an
applicant's short-form application should be submitted by e-mail to the
following address: auction88@fcc.gov. The e-mail summarizing the
changes must include a subject or caption referring to Auction 88 and
the name of the applicant.
62. 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
[[Page 22799]]
duly authorized employee, if the applicant is a corporation; (4) 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.
63. Applicants must not submit application-specific material
through the Commission's Electronic Comment Filing System which was
used for submitting comments regarding Auction 88.
I. Maintaining Current Information in Short-Form Applications
64. 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. Changes that cause a
loss of or reduction in the percentage of bidding credit specified on
the originally submitted application must be reported immediately. For
example, if ownership changes result in the attribution of new interest
holders that affect the applicant's qualifications for a new entrant
bidding credit, such information must be clearly stated in the
applicant's amendment. Events occurring after the application filing
deadline, such as the acquisition of attributable interests in media of
mass communications, may also cause diminishment or loss of the bidding
credit, and 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 application.
65. After the application filing deadline, applicants may make only
minor changes to their applications. Applicants must click on the
SUBMIT button in the FCC Auction System for any changes to be submitted
and considered by the Commission. If a submission in compliance with 47
CFR 1.65 is needed outside of the initial and resubmission filing
windows, applicants must submit a brief letter summarizing the changes
in accordance with the instructions specified in the Auction 88
Procedures Public Notice.
III. Pre-Auction Procedures
A. Online Auction Tutorial--Available May 4, 2010
66. On Tuesday, May 4, 2010, the Commission will post an
educational auction tutorial on the Auction 88 Web page for prospective
bidders to familiarize themselves with the auction process. This online
tutorial will provide information about pre-auction procedures,
completing short-form applications, auction conduct, the FCC Auction
Bidding System, auction rules, and broadcast services rules. The
tutorial will also provide an avenue to ask FCC staff questions about
the auction, auction procedures, filing requirements, and other matters
related to this auction.
67. The auction tutorial will be accessible from the FCC's Auction
88 Web page at https://wireless.fcc.gov/auctions/88/ through an Auction
Tutorial link. Once posted, this tutorial will remain available for
reference in connection with the procedures outlined in the Auction 88
Procedures Public Notice.
B. Short-Form Applications--Due Prior to 6 p.m. ET on May 13, 2010
68. In order to be eligible to bid in this auction, applicants must
first follow the procedures set forth in Attachment D of the Auction 88
Procedures Public Notice to submit a short-form application (FCC Form
175) electronically via the FCC Auction System. This short-form
application must be submitted through the FCC Auction System prior to 6
p.m. ET on May 13, 2010. Late applications will not be accepted. An
applicant always must click on the SUBMIT button on the Certify &
Submit screen to successfully submit its FCC Form 175 and any
modification; otherwise the application or changes to the application
will not be received or reviewed.
C. Application Processing and Minor Corrections
69. After the deadline for filing FCC Form 175 applications, the
Commission will process all timely submitted applications to determine
which are complete, and subsequently will issue a public notice
identifying (1) those applications that are complete; (2) those
applications that are rejected; and (3) those applications that are
incomplete because of minor defects that may be corrected. The public
notice will include the deadline for resubmitting corrected
applications.
70. After the application filing deadline on May 13, 2010,
applicants continue to be able to make only minor corrections to their
applications. Applicants will not be permitted to make major
modifications to their applications (e.g., change control of the
applicant, change the certifying official, or claim eligibility for a
higher percentage of bidding credit).
71. Applicants should be aware the Commission staff will
communicate only with an applicant's contact person or certifying
official, as designated on the applicant's short-form application,
unless the applicant's certifying official or contact person notifies
the Commission in writing that applicant's counsel or other
representative is authorized to speak on its behalf. Such
authorizations may be sent by e-mail to auction88@fcc.gov. In no event,
however, will the FCC send registration materials to anyone other than
the contact person listed on the applicant's FCC Form 175 or respond to
a request for replacement registration materials from anyone other than
an authorized bidder, contact person or certifying official listed on
the applicant's FCC Form 175.
D. Upfront Payments--Due June 17, 2010
72. In order to be eligible to bid in this auction, applicants must
submit an upfront payment accompanied by an FCC Remittance Advice Form
(FCC Form 159). The Bureaus note that all applicants for permits must
make an upfront payment in order to qualify as a bidder and obtain a
permit, whether or not any other applicant in their MX groups becomes a
qualified bidder. An applicant must initiate the wire transfer through
its bank, authorizing the bank to wire funds from the applicant's
account to the Commission's auction payment lockbox bank, the U.S. Bank
in St. Louis, Missouri. After completing its short-form application, an
applicant will have access to an electronic version of the FCC Form 159
that can be printed and sent by fax to U.S. Bank in St. Louis,
Missouri. All upfront payments must be made as instructed in this
Public Notice and must be received in the proper account at U.S. Bank
before 6 p.m. ET on June 17, 2010.
i. Making Upfront Payments by Wire Transfer
73. Wire transfer payments must be received before 6 p.m. ET on
June 17, 2010. No other payment method is acceptable. The Commission
will not accept checks, credit cards, or automated clearing house (ACH)
payments. To avoid untimely payments, applicants should discuss
arrangements (including bank closing schedules) with their bankers
several days before they
[[Page 22800]]
plan to make the wire transfer, and allow sufficient time for the
transfer to be initiated and completed before the deadline.
74. At least one hour before placing the order for the wire
transfer (but on the same business day), applicants must fax a
completed FCC Form 159 (Revised 2/03) to U.S. Bank at (314) 418-4232.
On the fax cover sheet, applicants should write Wire Transfer--Auction
Payment for Auction 88. In order to meet the Commission's upfront
payment deadline, an applicant's payment must be credited to the
Commission's account for Auction 88 before the deadline. The applicant
is responsible for obtaining confirmation from its financial
institution that U.S. Bank has timely received its upfront payment and
deposited it in the proper account.
75. Please note the following information regarding upfront
payments: (1) All payments must be made in U.S. dollars; (2) all
payments must be made by wire transfer; (3) upfront payments for
Auction 88 go to a lockbox number different from the lockboxes used in
previous FCC auctions; and (4) failure to deliver a sufficient upfront
payment as instructed by the specified deadline on June 17, 2010 will
result in dismissal of the short-form application and disqualification
from participation in the auction.
ii. FCC Form 159
76. A completed FCC Remittance Advice Form (FCC Form 159, Revised
2/03) must be faxed to U.S. Bank to accompany each upfront payment.
Proper completion of FCC Form 159 is critical to ensuring correct
crediting of upfront payments. Detailed instructions for completion of
FCC Form 159 are included in Attachment E of the Auction 88 Procedures
Public Notice. An electronic pre-filled version of the FCC Form 159 is
available after submitting the FCC Form 175. Payers using the pre-
filled FCC Form 159 are responsible for ensuring that all of the
information on the form, including payment amounts, is accurate. The
FCC Form 159 can be completed electronically, but must be filed with
U.S. Bank by fax.
iii. Upfront Payments and Bidding Eligibility
77. Attachment A of the Auction 88 Procedures Public Notice sets
forth minimum opening bids and upfront payments for permits being
offered in this auction. Applicants must make upfront payments
sufficient to obtain bidding eligibility on the construction permits on
which they will bid. The amount of the upfront payment determines a
bidder's initial bidding eligibility, the maximum number of bidding
units on which a bidder may place bids. In order to bid on a particular
construction permit, a qualified bidder must be identified as an
applicant for the construction permit in Attachment A of the Auction 88
Procedures Public Notice and must have a current eligibility level that
meets or exceeds the number of bidding units assigned to that
construction permit. At a minimum, therefore, an applicant's total
upfront payment must be enough to establish eligibility to bid on at
least one of the construction permits for which it is identified as an
applicant in Attachment A of the Auction 88 Procedures Public Notice,
or else the applicant will not be eligible to participate in the
auction.
78. An applicant does not have to make an upfront payment to cover
all construction permits for which it is identified as an applicant in
Attachment A of the Auction 88 Procedures Public Notice, but only
enough to cover the maximum number of bidding units that are associated
with construction permits on which the bidder wishes to place bids and
hold provisionally winning bids at any given time. Provisionally
winning bids are bids that would become final winning bids if the
auction were to close after the given round.
79. Some commenters requested reductions of minimum opening bids
for specific construction permits which correspond to the specific
upfront payments proposed by the Bureaus in the Auction 88 Comment
Public Notice. To the extent that the Bureaus reduced minimum opening
bid amounts, the corresponding upfront payment amount for that
construction permit also was reduced. With these exceptions, the
Bureaus adopted the upfront payments and bidding units proposed for
each construction permit in Auction 88. Upfront payment amounts and
bidding units are set forth in Attachment A of the Auction 88
Procedures Public Notice.
80. In calculating its upfront payment amount, an applicant should
determine the maximum number of bidding units on which it may wish to
be active (bid on or hold provisionally winning bids on) in any single
round, and submit an upfront payment amount covering that number of
bidding units. In order to make this calculation, an applicant should
add together the bidding units for all construction permits on which it
seeks to be active in any given round. Applicants should check their
calculations carefully, as there is no provision for increasing a
bidder's eligibility after the upfront payment deadline. Further, a
qualified bidder's maximum eligibility will not exceed the sum of the
bidding units associated with the total number of construction permits
identified for that applicant in Attachment A of the Auction 88
Procedures Public Notice. In some cases, a qualified bidder's maximum
eligibility may be less than the amount of its upfront payment because
the qualified bidder either has submitted an upfront payment that
exceeds the total amount of bidding units associated with the
construction permits identified for that applicant in Attachment A of
the Auction 88 Procedures Public Notice or has previously been in
default on a Commission construction permit or license or delinquent on
non-tax debt owed to a Federal agency.
81. As explained previously in the Auction 88 Procedures Public
Notice, applicants that are former defaulters must pay upfront payments
50 percent greater than non-former defaulters. If an applicant is a
former defaulter, it must calculate its upfront payment for all of its
identified construction permits by multiplying the number of bidding
units on which it wishes to be active by 1.5. In order to calculate the
number of bidding units to assign to former defaulters, the Commission
will divide the upfront payment received by 1.5 and round the result up
to the nearest bidding unit. If a former defaulter fails to submit a
sufficient upfront payment to establish eligibility to bid on at least
one of the construction permits designated for that applicant in
Attachment A of the Auction 88 Procedures Public Notice, the applicant
will not be eligible to participate in the auction.
E. Auction Registration
82. Approximately ten days before the auction, the Bureaus will
issue a public notice announcing all qualified bidders for the auction.
Qualified bidders are those applicants with submitted FCC Form 175
applications that are deemed timely-filed, accurate, and complete,
provided that such applicants have timely submitted an upfront payment
that is sufficient to qualify them to bid.
83. All qualified bidders are automatically registered for the
auction