Auction of VHF Commercial Television Station Construction Permits Scheduled for February 15, 2011; Notice and Filing Requirements, Minimum Opening Bids, Upfront Payments, and Other Procedures for Auction 90, 74719-74731 [2010-30219]

Agencies

• FEDERAL COMMUNICATIONS COMMISSION

[Federal Register Volume 75, Number 230 (Wednesday, December 1, 2010)]
[Notices]
[Pages 74719-74731]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-30219]


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FEDERAL COMMUNICATIONS COMMISSION

[AU Docket No. 10-147; DA 10-2008]


Auction of VHF Commercial Television Station Construction Permits 
Scheduled for February 15, 2011; Notice and Filing Requirements, 
Minimum Opening Bids, Upfront Payments, and Other Procedures for 
Auction 90

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: This document announces the procedures and minimum opening 
bids for the upcoming auction of certain VHF commercial TV construction 
permits (Auction 90). This document is intended to familiarize 
prospective bidders with the procedures and minimum opening bids for 
the auction.

DATES: Applications to participate in Auction 90 must be filed prior to 
6 p.m. Eastern Time (ET) on December 15, 2010. Bidding for construction 
permits in Auction 90 is scheduled to begin on February 15, 2011.

FOR FURTHER INFORMATION CONTACT: Wireless Telecommunications Bureau, 
Auctions and Spectrum Access Division: For legal questions: Howard 
Davenport or Lynne Milne at (202) 418-0660. For general auction 
questions: Jeff Crooks at (202) 418-0660 or Barbara Sibert at (717) 
338-2829. Media Bureau, Audio Division: For licensing information and 
service rule questions: Shaun Maher or Adrienne Denysyk 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 90 
Procedures Public Notice, which was released on November 1, 2010. The 
complete text of the Auction 90 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 90 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 10-2008 for the 
Auction 90 Procedures Public Notice. The Auction 90 Procedures Public 
Notice and related documents are also available on the Internet at the 
Commission's Web site: https://wireless.fcc.gov/auctions/90/.

I. General Information

A. Introduction

    1. The Wireless Telecommunications Bureau and Media Bureau 
(collectively, the Bureaus) announce the procedures and minimum opening 
bid amounts for the upcoming auction of two digital very high frequency 
(VHF) commercial television station construction permits. This auction, 
which is designated as Auction 90, is scheduled to commence on February 
15, 2011. On September 8, 2010, the Bureaus released a public notice 
seeking comment on competitive bidding procedures to be used in Auction 
90. Two parties submitted comments and reply comments in response to 
the Auction 90 Comment Public Notice 75 FR 59747, September 23, 2010.
i. Background
    2. The Media Bureau recently amended the Post-Transition Table of 
DTV Allotments by allotting digital VHF commercial television channels 
in New Jersey and Delaware. The first allotment is channel 4 in 
Atlantic City, New Jersey and the second allotment is channel 5 in 
Seaford, Delaware.

[[Page 74720]]

ii. Construction Permits in Auction 90
    3. Auction 90 will offer construction permits for two VHF 
commercial television stations. The Commission's competitive bidding 
rules will be used to select among mutually exclusive applications for 
these construction permits in Auction 90. When two or more short-form 
applications (FCC Forms 175) are accepted for filing for the same 
construction permit in Auction 90, mutual exclusivity exists for 
auction purposes. Once mutual exclusivity exists for auction purposes, 
even if only one applicant for a particular construction permit submits 
an upfront payment, that applicant is required to submit a bid in order 
to obtain the construction permit. Any applicant that submits a short-
form application but fails to timely submit an upfront payment will 
retain its status as an applicant in Auction 90 and will remain subject 
to the Commission's rules concerning prohibited communications, but, 
having purchased no bidding eligibility, will not be eligible to bid.
    4. A commenter asked that the Commission to amend the Post-
Transition Table of DTV Allotments as set-out in 47 CFR 73.622(i) in 
order to allow the eventual winner of Auction 90 to license the VHF 
television station to any community in Delaware or New Jersey provided 
that such an allotment would not cause harmful interference to other 
VHF services. The proposal is beyond the scope of this proceeding, 
which is confined to establishing competitive bidding procedures for 
this auction of DTV construction permits. This proceeding is not an 
appropriate forum in which to challenge determinations made in the DTV 
allocation rulemaking proceeding. Accordingly, the Bureaus are unable 
to adopt this proposal.

B. Rules and Disclaimers

i. Relevant Authority
    5. 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, and obligations of Commission licensees. Potential 
applicants should also familiarize themselves with the Commission's 
rules relating to the Television Broadcast Service contained in 47 CFR 
Part 73.
    6. The terms contained in the Commission's rules, relevant orders, 
and public notices are not negotiable. The Commission may amend or 
supplement the information contained in its public notices at any time, 
and will issue public notices to convey any new or supplemental 
information to applicants. It is the responsibility of all applicants 
to remain current with all Commission rules and with all public notices 
pertaining to this auction.
ii. Prohibited Communications and Compliance With Antitrust Laws
    7. 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
    8. 47 CFR 1.2105(c)'s prohibition on certain communications will 
apply to any applicants that submit short-form applications seeking to 
participate in a Commission auction for construction permits in the 
same geographic license area. Thus, unless they have identified each 
other on their short-form applications as parties with whom they have 
entered into agreements under 47 CFR 1.2105(a)(2)(viii), 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 Television Broadcast Service, the market 
designation is the particular vacant DTV allotment (e.g., Atlantic 
City, NJ, Channel DTV 4, MM-DTV012-4).
    9. 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.
    10. 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. The Bureaus 
have not addressed situations where non-principals (i.e., those who are 
not officers or directors and thus not considered to be the applicant) 
receive information regarding a competing applicant's bids or bidding 
strategies and whether that information might be deemed to necessarily 
convey to the applicant. An exception to the prohibition on certain 
communications allows non-controlling interest holders to obtain 
interests in more than one competing applicant without violating 47 CFR 
1.2105(c) provided specified conditions are met (including a 
certification that no prohibited communications have occurred or will 
occur), but that exception does not extend to controlling interest 
holders.
    11. Moreover, Auction 90 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
    12. The 47 CFR 1.2105(c) 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
    13. Applicants should note that they must not communicate directly 
or

[[Page 74721]]

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 communication of 
another applicant's bids or bidding strategy. While 47 CFR 1.2105(c) 
does not prohibit non-auction-related 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.
    14. 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 
analysts or others.
d. Disclosure of Bidding Agreements and Arrangements
    15. 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
    16. By electronically submitting a short-form application, each 
applicant in Auction 90 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
    17. 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.
    18. In addition, 47 CFR 1.65 requires an applicant to maintain the 
accuracy and completeness of information furnished in its pending 
application and to notify the Commission of any substantial change that 
may be of decisional significance to that application. Thus, 47 CFR 
1.65 requires an auction applicant to notify the Commission of any 
substantial change to the information or certifications included in its 
pending short-form application. An applicant is therefore 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).
    19. 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. These reporting requirements 
facilitate the auction process by making the information available 
promptly to all participants and enabling the Bureaus to act 
expeditiously on those changes when such action is necessary.
    20. 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.
    21. 47 CFR 1.2105(c) requires parties to file only a single report 
and to file that report with Commission personnel expressly charged 
with administering the Commission auctions. This requirement is 
designed to minimize the risk of inadvertent dissemination of 
information in such reports. Pursuant to the amended rule, any reports 
required by 47 CFR 1.2105(c) must be filed consistent with the 
instructions set forth in the Auction 90 Procedures Public Notice. For 
Auction 90, 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 to auction90@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.
    22. 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. 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. Applicants must be aware that 
failure to comply with the Commission's rules can result in enforcement 
action.
g. Winning Bidders Must Disclose Terms of Agreements
    23. 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.

[[Page 74722]]

h. Additional Information Concerning Rule Prohibiting Certain 
Communications
    24. A summary listing of documents issued by the Commission and the 
Bureaus addressing the application of 47 CFR 1.2105(c) may be found in 
Attachment D of the Auction 90 Procedures Public Notice.
i. 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 auctions, among other sanctions. See 47 
CFR 1.2109(d).
iii. Due Diligence
    26. 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. Bidders are responsible for assuring themselves that, if they 
win a construction permit, they will be able to build and operate 
facilities in accordance with the Commission's rules. The FCC makes no 
representations or warranties about the use of this spectrum for 
particular services. Applicants should be aware that an FCC auction 
represents an opportunity to become an FCC construction permittee in a 
broadcast service, subject to certain conditions and regulations. An 
FCC auction does not constitute an endorsement by the FCC of any 
particular service, technology, or product, nor does an FCC 
construction permit or license constitute a guarantee of business 
success. Applicants should perform their due diligence research and 
analysis before proceeding, as they would with any new business 
venture. Applicants are strongly encouraged to conduct their own 
research prior to Auction 90 in order to determine the existence of any 
pending administrative or judicial proceedings, including pending 
allocations rulemaking proceedings that might affect their decisions 
regarding participation in the auction. Participants in Auction 90 are 
strongly encouraged to continue such research throughout the auction. 
Applicants should perform due diligence to identify and consider all 
proceedings that may affect the construction permits being auctioned 
and that could have an impact on the availability of spectrum for 
Auction 90. Applicants are solely responsible for identifying 
associated risks and for investigating and evaluating the degree to 
which such matters may affect their ability to bid on, otherwise 
acquire, or make use of the construction permits available in Auction 
90. In addition, potential applicants should review the Auction 90 
Procedures Public Notice for additional guidance as they plan and 
undertake their due diligence efforts.
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 90 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 must comply 
with the Commission's environmental rules for each such facility.

C. Auction Specifics

i. Auction Start Date
    29. Bidding in Auction 90 will begin on Tuesday, February 15, 2011, 
as announced in the Auction 90 Comment Public Notice. 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 90 will be simultaneous 
multiple round bidding. The Commission will conduct this auction over 
the Internet using the FCC Auction System, and telephonic bidding will 
be available as well. Qualified bidders are permitted to bid 
electronically via the Internet or by telephone. All telephone calls 
are recorded.
iii. Pre-Auction Dates and Deadlines
    31. The following dates and deadlines apply:

Auction Tutorial Available (via Internet)--December 8, 2010
Short-Form Application (FCC Form 175) Filing Window Opens--December 8, 
2010; 12 noon ET
Short-Form Application (FCC Form 175) Filing Window Deadline--December 
15, 2010; prior to 6 p.m. ET
Upfront Payments (via wire transfer)--January 21, 2011; 6 p.m. ET
Mock Auction--February 11, 2011
Auction Begins--February 15, 2011

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. The short-form application is the first part of 
the Commission's two-phased auction application process. In the first 
phase of this process, parties desiring to participate in the auction 
must file streamlined, short-form applications in which they certify 
under penalty of perjury as to their qualifications. 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

[[Page 74723]]

participate in Auction 90, 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 as 
well as their upfront payments, as explained below. In the second phase 
of the process, winning bidders must file more comprehensive long-form 
applications.
    33. Entities and individuals seeking construction permits available 
in Auction 90 must file a short-form application electronically via the 
FCC Auction System prior to 6 p.m. ET on December 15, 2010, following 
the procedures prescribed in Attachment B to the Auction 90 Procedures 
Public Notice. If an applicant claims eligibility for a bidding credit, 
the information provided in its FCC Form 175 will be used in 
determining whether the applicant is eligible for the claimed bidding 
credit. Applicants filing a short-form application are subject to the 
Commission's rules prohibiting certain communications beginning on the 
deadline for filing, as described above.
    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 B to the Auction 90 Procedures Public Notice carefully and 
should consult the Commission's rules to ensure that all the 
information that is required under the Commission's rules is included 
with their short-form applications.
    35. An entity may not submit more than one short-form application 
for a single auction. If a party submits multiple short-form 
applications, only one application may be accepted for filing.
    36. Entities seeking to apply for a noncommercial educational 
station in the Auction 90 allotments should be aware that the 
Commission policy requires that an application for a noncommercial 
educational station that is mutually exclusive with any application for 
a commercial station will be returned as unacceptable for filing. 
Applications specifying the same television station construction permit 
are considered mutually exclusive.
    37. Applicants also should note that submission of a short-form 
application (and any amendments thereto) constitutes a representation 
by the certifying official that he or she is an authorized 
representative of the applicant, that he or she has read the form's 
instructions and certifications, and that the contents of the 
application, its certifications, and any attachments are true and 
correct. Applicants are not permitted to make major modifications to 
their applications; such impermissible changes include a change of the 
certifying official to the application. Submission of a false 
certification to the Commission may result in penalties, including 
monetary forfeitures, license forfeitures, ineligibility to participate 
in future auctions, and/or criminal prosecution.

B. Permit Selection

    38. An applicant must select the construction permits on which it 
wants to bid from the Eligible Permits list on its short-form 
application. Applicants will not be able to change their construction 
permit selections after the short-form application filing deadline. 
Applicants interested in participating in Auction 90 must have selected 
construction permit(s) available in this auction by the short-form 
application filing deadline. Applicants must review and verify their 
construction permit selections before the deadline for submitting 
short-form applications. The FCC Auction System will not accept bids 
from an applicant on construction permits that the applicant has not 
selected on its short-form application.

C. New Entrant Bidding Credit

    39. To promote the objectives of section 309(j) and further its 
long-standing commitment to the diversification of broadcast facility 
ownership, the Commission adopted a tiered New Entrant Bidding Credit 
for broadcast auction applicants with no, or very few, other media 
interests.
    40. 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 90, 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.
    41. Under traditional broadcast attribution rules, 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.
    42. 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.
    43. Bidders are also reminded that, by the New Entrant Bidding 
Credit Reconsideration Order, the Commission further refined the 
eligibility standards for the New Entrant Bidding Credit, judging it 
appropriate to attribute the media interests held by very substantial 
investors in, or creditors of, an applicant claiming new entrant 
status. Specifically, the attributable mass media interests held by an 
individual or entity with an equity and/or debt interest in an 
applicant shall be attributed to that bidder for purposes of 
determining its eligibility for the New Entrant Bidding Credit, if the 
equity and debt interests, in the aggregate, exceed 33 percent of the 
total asset value of the applicant, even if such an interest is non-
voting.
    44. In the Diversity Order, 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

[[Page 74724]]

to acquire an equity interest in the eligible entity or any related 
entity.
    45. 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). Full service noncommercial educational stations, on 
both reserved and nonreserved channels, are included among media of 
mass communications as defined in 47 CFR 73.5008(b).

D. Application Requirements

    46. 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.
i. Bidding Credits
    47. 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 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.
    48. Bidding credits are not cumulative; qualifying applicants 
receive either the 25 percent or the 35 percent bidding credit, but not 
both. Attributable interests are defined in 47 CFR 73.3555 and note 2 
of that section. Applicants should note that unjust enrichment 
provisions apply to a winning bidder that utilizes a bidding credit and 
subsequently seeks to assign or transfer control of its license or 
construction permit to an entity not qualifying for the same level of 
bidding credit.

E. Disclosure of Bidding Arrangements

    49. 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.
    50. 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.
    51. After the filing of short-form applications, the Commission's 
rules do not prohibit a party holding a non-controlling, attributable 
interest in one applicant from acquiring an ownership interest in or 
entering into a joint bidding arrangement with other applicants, 
provided that: (i) The attributable interest holder certifies that it 
has not and will not communicate with any party concerning the bids or 
bidding strategies of more than one of the applicants in which it holds 
an attributable interest, or with which it has entered into a joint 
bidding arrangement; and (ii) the arrangements do not result in a 
change in control of any of the applicants. While 47 CFR 1.2105(c) of 
the rules 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. Further, compliance with the 
disclosure requirements of 47 CFR 1.2105(c) will not insulate a party 
from enforcement of the antitrust laws.

F. Ownership Disclosure Requirements

    52. All applicants must comply with the uniform Part 1 ownership 
disclosure standards and provide information required by 47 CFR 1.2105 
and 1.2112. Specifically, in completing the short-form application, 
applicants will be required to fully disclose information on the real 
party- or parties-in-interest and ownership structure of the applicant, 
including both direct and indirect ownership interests of 10 percent or 
more. The ownership disclosure standards for the short-form application 
are prescribed in 47 CFR 1.2105 and 1.2112. Each applicant is 
responsible for information submitted in its short-form application 
being complete and accurate.
    53. In certain circumstances, an applicant's most current ownership 
information on file with the Commission, if in an electronic format 
compatible with the short-form application (FCC Form 175) (such as 
information submitted in an on-line FCC Form 602 or in an FCC Form 175 
filed for a previous auction using ISAS) will automatically be entered 
into the applicant's short-form application. Applicants are responsible 
for ensuring that the information submitted in their short-form 
application for Auction 90 is complete and accurate. Accordingly, 
applicants should carefully review any information automatically 
entered to confirm that it is complete and accurate as of the deadline 
for filing the short-form application.

[[Page 74725]]

G. Provisions Regarding Former and Current Defaulters

    54. Current defaulters or delinquents are not eligible to 
participate in Auction 90, 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 permits or 
licenses (including down payments) 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.
    55. 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 are not in default on any payment for a Commission construction 
permit or license (including down payments) and that it is not 
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 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.
    56. 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.
    57. 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.
    58. 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.
    59. Moreover, prospective applicants in Auction 90 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.

H. Optional Applicant Status Identification

    60. 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 applicant 
status information is collected for statistical purposes only and 
assists the Commission in monitoring the participation of designated 
entities in its auctions.

I. Minor Modifications to Short-Form Applications

    61. After the deadline for filing initial applications, an Auction 
90, 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 their construction permit 
selections, change control of the applicant, change the certifying 
official, claim eligibility for a higher percentage of bidding credit 
or change their identification of the application's proposed facilities 
as noncommercial educational) 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.
    62. 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.
    63. 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

[[Page 74726]]

changes (e.g. changing certain contact information or the name of an 
authorized bidder). If these or 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. Moreover, after the 
filing window has closed, ISAS will not permit applicants to make 
certain changes, such as the applicant's legal classification and the 
identification of the application's proposed facilities as 
noncommercial educational.
    64. Any letter describing changes to an applicant's short-form 
application should be submitted by e-mail to auction90@fcc.gov. The e-
mail summarizing the changes must include a subject or caption 
referring to Auction 90 and the name of the applicant.
    65. Any application amendment and related statements of fact must 
be certified by (1) the applicant, if the applicant is an individual; 
(2) one of the partners if the applicant is a partnership; (3) an 
officer, director, or duly authorized employee, if the applicant is a 
corporation; (4) 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.
    66. Applicants must not submit application-specific material 
through the Commission's Electronic Comment Filing System (ECFS), which 
was used for submitting comments regarding Auction 90.

J. Maintaining Current Information in Short-Form Applications

    67. 47 CFR 1.65 and 1.2105(b) require an applicant to maintain the 
accuracy and completeness of information in its pending application and 
to furnish additional or corrected information to the Commission within 
five days of a significant occurrence, or to amend its short-form 
application no more than five days after the applicant becomes aware of 
the need for amendment. 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. After the application filing deadline, applicants may make 
only minor changes to their applications.
    68. 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 90 
Procedures Public Notice.

III. Pre-Auction Procedures

A. Online Auction Tutorial--Available December 8, 2010

    69. On Wednesday, December 8, 2010, the Commission will post an 
educational auction tutorial on the Auction 90 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.
    70. The Auction 90 online tutorial replaces the live bidder 
seminars that have been offered for most previous auctions. The Bureaus 
believe parties interested in participating in Auction 90 will find 
this interactive, online tutorial a more efficient and effective way to 
further their understanding of the auction process.
    71. The auction tutorial will be accessible from the FCC's Auction 
90 Web page at https://wireless.fcc.gov/auctions/90/ through an Auction 
Tutorial link. Once posted, this tutorial will remain available for 
reference in connection with the procedures outlined in the Auction 90 
Procedures Public Notice and accessible anytime.

B. Short-Form Applications--Due Prior to 6 p.m. ET on December 15, 2010

    72. In order to be eligible to bid in this auction, applicants must 
first follow the procedures set forth in Attachment B to the Auction 90 
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 December 15, 2010. Late applications will not be accepted. 
There is no application fee required when filing an FCC Form 175, but 
an applicant must submit a timely upfront payment to be eligible to 
bid.

C. Application Processing and Minor Corrections

    73. 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.
    74. Non-mutually exclusive applications will not proceed to 
auction, but will proceed in accordance with instructions set forth in 
a public notice. All mutually exclusive applications will be considered 
under the relevant procedures for conflict resolution. Mutually 
exclusive applications proposing commercial stations will proceed to 
auction. In the NCE Second Report and Order, 68 FR 26220, May 15, 2003, 
the Commission held that applications for NCE full power television 
stations on nonreserved spectrum, filed during a television filing 
window, will be returned as unacceptable for filing if mutually 
exclusive with any application for a commercial station. Accordingly, 
if an FCC Form 175 filed during the Auction 90 filing window 
identifying the application's proposed station as noncommercial 
educational is mutually exclusive with any application filed during 
that window by an applicant for a commercial station, the former will 
be returned as unacceptable for filing.
    75. After the application filing deadline on December 15, 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 their construction 
permit selections, change

[[Page 74727]]

control of the applicant, change the certifying official, claim 
eligibility for a higher percentage of bidding credit, or change their 
self-identification as NCE).
    76. 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. Authorizations may 
be sent by e-mail to auction90@fcc.gov.

D. Upfront Payments--Due January 21, 2011

    77. 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). We 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. 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 January 21, 2011.
i. Making Upfront Payments by Wire Transfer
    78. Wire transfer payments must be received before 6 p.m. ET on 
January 21, 2011. No other payment method is acceptable. To avoid 
untimely payments, applicants should discuss arrangements (including 
bank closing schedules) with their bankers several days before they 
plan to make the wire transfer, and allow sufficient time for the 
transfer to be initiated and completed before the deadline.
    79. 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 90. In order to meet the Commission's upfront 
payment deadline, an applicant's payment must be credited to the 
Commission's account for Auction 90 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.
    80. 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 90 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 January 21, 2011, deadline will result in 
dismissal of the short-form application and disqualification from 
participation in the auction.
ii. FCC Form 159
    81. 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 C to the Auction 90 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
    82. The Commission has delegated to the Bureaus the authority and 
discretion to determine appropriate upfront payments for each auction. 
Upfront payments help deter frivolous or insincere bidding, and provide 
the Commission with a source of funds in the event that the bidder 
incurs liability during the auction.
    83. Applicants that are former defaulters, as described above, must 
pay upfront payments 50 percent greater than non-former defaulters. For 
purposes of this calculation, the applicant includes the applicant 
itself, its affiliates, its controlling interests, and affiliates of 
its controlling interests, as defined by 47 CFR 1.2110 of the 
Commission's rules.
    84. Applicants must make upfront payments sufficient to obtain 
bidding eligibility on the construction permits on which they will bid. 
The Bureaus proposed, in the Auction 90 Comment Public Notice, that the 
amount of the upfront payment would determine a bidder's initial 
bidding eligibility, the maximum number of bidding units on which a 
bidder may place bids. Under the Bureaus' proposal, in order to bid on 
a particular construction permit, a qualified bidder must have selected 
the construction permit on its FCC Form 175 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 selected 
on its FCC Form 175, or else the applicant will not be eligible to 
participate in the auction. An applicant does not have to make an 
upfront payment to cover all construction permits the applicant 
selected on its FCC Form 175, 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.
    85. In the Auction 90 Comment Public Notice, the Bureaus proposed 
upfront payments for each construction permit taking into account 
various factors related to the efficiency of the auction process and 
the potential value of similar spectrum and sought comment on this 
proposal. The Bureaus received no comments on the proposal that the 
upfront payment amount would determine a bidder's initial bidding 
eligibility or in response to the specific upfront payments proposed in 
the Auction 90 Comment Public Notice. Therefore, the Bureaus adopt the 
upfront payments and bidding units proposed for each construction 
permit in Auction 90. Upfront payment amounts and bidding units are set 
forth in Attachment A of the Auction 90 Procedures Public Notice.
    86. 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.
    87. 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

[[Page 74728]]

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.

E. Applicant's Wire Transfer Information for Purposes of Refunds of 
Upfront Payments

    88. To ensure that refunds of upfront payments are processed in an 
expeditious manner, the Commission is requesting that all pertinent 
information listed below be supplied. Applicants can provide the 
information electronically during the initial short-form application 
filing window after the form has been submitted. (Applicants are 
reminded that information submitted as part of an FCC Form 175 will be 
available to the public; for that reason, wire transfer information 
should not be included in an FCC Form 175.) Wire Transfer Instructions 
can also be manually faxed to the FCC, Financial Operations, Auctions 
Accounting Group, Attn: Gail Glasser, at (202) 418-2843.

F. Auction Registration

    89. 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.
    90. 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[supreg] tokens that will be required to place bids, 
the Integrated Spectrum Auction System (ISAS) Bidder's Guide, and the 
Auction Bidder Line phone number.
    91. Qualified bidders that do not receive this registration mailing 
will not be able to submit bids. Therefore, any qualified bi