Auction of Lower and Upper Paging Bands Licenses Scheduled for July 16, 2013; Comment Sought on Competitive Bidding Procedures for Auction 95, 11179-11185 [2013-03493]
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[FR Doc. 2013–03528 Filed 2–14–13; 8:45 am]
BILLING CODE 6570–01–C
EQUAL EMPLOYMENT OPPORTUNITY
COMMISSION
Sunshine Act Notice
Equal
Employment Opportunity Commission.
DATE AND TIME: Wednesday, February 20,
2013, 9:30 a.m. Eastern Time.
PLACE: Commission Meeting Room on
the First Floor of the EEOC Office
Building, 131 ‘‘M’’ Street, NE.,
Washington, DC 20507.
STATUS: Part of the meeting will be open
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MATTERS TO BE CONSIDERED:
AGENCY HOLDING THE MEETING:
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addition to publishing notices on EEOC
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Dated: February 13, 2013.
Bernadette B. Wilson,
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[FR Doc. 2013–03774 Filed 2–13–13; 4:15 pm]
BILLING CODE 6570–01–P
FEDERAL COMMUNICATIONS
COMMISSION
[AU Docket No. 13–12; DA 13–60]
Auction of Lower and Upper Paging
Bands Licenses Scheduled for July 16,
2013; Comment Sought on Competitive
Bidding Procedures for Auction 95
Federal Communications
Commission.
ACTION: Notice.
AGENCY:
This document announces the
auction of certain Paging Bands licenses
scheduled to commence on July 16,
2013. This document also seeks
SUMMARY:
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comment on competitive bidding
procedures for Auction 95.
DATES: Comments are due on or before
February 22, 2013, and reply comments
are due on or before March 14, 2013.
ADDRESSES: All filings in response to
this public notice must refer to AU
Docket No. 13–12. The Wireless
Telecommunications Bureau strongly
encourages interested parties to file
comments electronically, and request
that an additional copy of all comments
and reply comments be submitted
electronically to the following address:
auction95@fcc.gov. Comments may be
submitted by any of the following
methods:
D Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
D Federal Communications
Commission’s Web Site: https://
fjallfoss.fcc.gov/ecfs2/. Follow the
instructions for submitting comments.
D Paper Filers: Parties who choose to
file by paper must file an original and
four copies of each filing. Filings can be
sent by hand or messenger delivery, by
commercial overnight courier, or by
first-class or overnight U.S. Postal
Service mail. All filings must be
addressed to the Commission’s
Secretary, Attn: WTB/ASAD, Office of
the Secretary, Federal Communications
Commission.
D All hand-delivered or messengerdelivered paper filings for the
Commission’s Secretary must be
delivered to FCC Headquarters at 445
12th Street SW., Room TW–A325,
Washington, DC 20554. All hand
deliveries must be held together with
rubber bands or fasteners. Any
envelopes must be disposed of before
entering the building.
D Commercial overnight mail (other
than U.S. Postal Service Express Mail
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and Priority Mail) must be sent to 9300
East Hampton Drive, Capitol Heights,
MD 20743.
D U.S. Postal Service first-class,
Express, and Priority mail must be
addressed to 445 12th Street SW.,
Washington, DC 20554.
D People with Disabilities: Contact the
FCC to request reasonable
accommodations (accessible format
documents, sign language interpreters,
CART, etc.) by email: FCC504@fcc.gov
or phone: 202–418–0530 or TTY: 202–
418–0432.
FOR FURTHER INFORMATION CONTACT:
Wireless Telecommunications Bureau,
Auctions and Spectrum Access Division:
For auction legal questions: Howard
Davenport at (202) 418–0660; for general
auction questions: Debbie Smith or
Linda Sanderson at (717) 338–2868.
Mobility Division: For Paging service
rule questions: Kathy Harris (legal) or
Keith Harper (technical) at (202) 418–
0620.
SUPPLEMENTARY INFORMATION: This is a
summary of the Auction 95 Comment
Public Notice released on February 1,
2013. The complete text of the Auction
95 Comment Public Notice, including an
attachment and related Commission
documents, is available for public
inspection and copying from 8:00 a.m.
to 4:30 p.m. Eastern Time (ET) Monday
through Thursday or from 8:00 a.m. to
11:30 a.m. ET on Fridays in the FCC
Reference Information Center, 445 12th
Street SW., Room CY–A257,
Washington, DC 20554. The Auction 95
Comment Public Notice and related
Commission documents also may be
purchased from the Commission’s
duplicating contractor, Best Copy and
Printing, Inc. (BCPI), 445 12th Street
SW., Room CY–B402, Washington, DC
20554, telephone 202–488–5300, fax
202–488–5563, or you may contact BCPI
at its Web site: https://
www.BCPIWEB.com. When ordering
documents from BCPI, please provide
the appropriate FCC document number,
for example, DA 13–60. The Auction 95
Comment Public Notice and related
documents also are available on the
Internet at the Commission’s Web site:
https://wireless.fcc.gov/auctions/95/, or
by using the search function for AU
Docket No. 13–12 on the Commission’s
Electronic Comment Filing System
(ECFS) web page at https://www.fcc.gov/
cgb/ecfs/.
I. Introduction
1. The Wireless Telecommunications
Bureau (Bureau) announces an auction
of 5,905 paging licenses to commence
on July 16, 2013, and is designated as
Auction 95.) The Bureau seeks comment
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on the procedures to be used for this
auction. The licenses available in
Auction 95 consist of 4,902 licenses in
the lower paging bands (35–36 MHz,
43–44 MHz, 152–159 MHz, 454–460
MHz) and 1,003 licenses in the upper
paging bands (929–931 MHz).
II. Licenses To Be Offered in Auction 95
2. Auction 95 will offer licenses that
remained unsold from previous
auctions, licenses on which a winning
bidder in a previous auction defaulted,
and licenses for spectrum previously
associated with licenses that cancelled
or terminated. In a few cases, the
available license does not cover the
entire geographic area due to an
excluded area or previous partitioning.
3. Attachment A to the Auction 95
Comment Public Notice provides a
summary of the licenses available in
Auction 95. Due to the large number of
licenses in Auction 95, the complete list
of licenses available for this auction will
be provided in electronic format only,
available as separate Attachment A files
at https://wireless.fcc.gov/auctions/95/.
A. License Descriptions
4. The Commission has concluded
that the lower band licenses should be
awarded in each of the 175 geographic
areas known as Economic Areas (EAs),
and the upper bands licenses should be
awarded in each of the 51 geographic
areas known as Major Economic Areas
(MEAs). These EAs and MEAs
encompass the United States, Guam, the
Northern Mariana Islands, Puerto Rico,
the U.S. Virgin Islands, and American
Samoa.
5. Tables containing the block/
frequency cross-reference list for the
paging bands are included in
Attachment B to the Auction 95
Comment Public Notice. These licenses
are limited to bandwidths of 20
kilohertz (kHz) or 20 kHz pairs (40 kHz
total). Licensees may use the spectrum
to provide (1) one-way messaging, (2)
two-way messaging, and (3) fixed
wireless services. Provision of these
services is subject to the technical
limitations set forth for the service in
Part 22 of the Commission’s rules.
B. Incumbency Issues
6. There are pre-existing paging
incumbent licenses. Incumbent (nongeographic) paging licensees operating
under their existing authorizations are
entitled to full protection from cochannel interference. Geographic area
licensees are likewise afforded cochannel interference protection from
incumbent licensees. Geographic area
licensees are obligated to resolve
possible interference concerns of
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adjacent geographic area licensees by
negotiating a mutually acceptable
agreement with the neighboring
geographic licensee.
III. Due Diligence
7. Each potential bidder is solely
responsible for investigating and
evaluating all technical and marketplace
factors that may have a bearing on the
value of the licenses that it is seeking in
this auction. Each bidder is responsible
for assuring that, if it wins a license, it
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. Each applicant should be
aware that an FCC auction represents an
opportunity to become an FCC licensee
in the paging 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 license
constitute a guarantee of business
success.
8. An applicant should perform its
due diligence research and analysis
before proceeding, as it would with any
new business venture. Each potential
bidder should perform technical
analyses and/or refresh any previous
analyses to assure itself that, should it
become a winning bidder for any
Auction 95 license, it will be able to
build and operate facilities that will
fully comply with all applicable
technical and legal requirements. The
Bureau strongly encourages each
applicant to inspect any prospective
transmitter sites located in, or near, the
geographic area for which it plans to
bid; confirm the availability of such
sites; and familiarize itself with the
Commission’s rules regarding the
National Environmental Policy Act.
9. The Bureau strongly encourages
each applicant to conduct its own
research prior to Auction 95 in order to
determine the existence of pending
administrative, rulemaking, or judicial
proceedings that might affect its
decisions regarding participation in the
auction.
10. The Bureau strongly encourages
participants in Auction 95 to continue
such research throughout the auction.
The due diligence considerations
mentioned in the Auction 95 Comment
Public Notice does not comprise an
exhaustive list of steps that should be
undertaken prior to participating in this
auction. As always, the burden is on the
potential bidder to determine how much
research to undertake, depending upon
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the specific facts and circumstances
related to its interests.
IV. Bureau Seeks Comment on Auction
Procedures
11. The Commission directed the
Bureau, under delegated authority, to
seek comment on a variety of auctionspecific procedures prior to the start of
each auction. Therefore the Bureau
seeks comment on the following issues
relating to the conduct of Auction 95.
A. Auction Structure
i. Simultaneous Multiple-Round
Auction Design
12. The Bureau proposes to auction
all licenses included in Auction 95
using the Commission’s standard
simultaneous multiple-round auction
format. This type of auction offers every
license for bid at the same time and
consists of successive bidding rounds in
which eligible bidders may place bids
on individual licenses. Typically,
bidding remains open on all licenses
until bidding stops on every license.
The Bureau seeks comment on this
proposal.
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ii. Anonymous Bidding
13. In several prior auctions the
Commission has adopted procedures to
limit the disclosure of certain bidderspecific information until after the
auction. Consistent with that practice,
the Bureau proposes to conduct Auction
95 using certain procedures for limited
information disclosure or anonymous
bidding. Specifically, the Bureau
proposes to withhold, until after the
close of bidding, public release of (1)
bidders’ license selections on their
short-form applications (FCC Form 175),
(2) the amounts of bidders’ upfront
payments and bidding eligibility, and
(3) information that may reveal the
identities of bidders placing bids and
taking other bidding-related actions.
14. Under these proposed limited
information procedures, the amount of
every bid placed and whether a bid was
withdrawn would be disclosed after the
close of every round, but the identities
of bidders placing specific bids or
withdrawals and the net bid amounts
would not be disclosed until after the
close of the auction.
15. Bidders would have access to
additional information about their own
bids. For example, bidders would be
able to view their own level of
eligibility, before and during the
auction, through the Commission’s
Integrated Spectrum Auction System
(ISAS or FCC Auction System).
16. Moreover, for the purpose of
complying with 47 CFR 1.2105(c)
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prohibiting certain communications
between applicants (formerly referred to
as the anti-collusion rule), applicants
would be made aware of other
applicants with which they will not be
permitted to cooperate, collaborate, or
communicate, including discussing
bids, bidding strategies, or post-auction
market structure. Specifically, the
Bureau would notify separately each
applicant in Auction 95 whether
applicants with short-form applications
to participate in pending auctions,
including but not limited to Auction 95,
have applied for licenses in any of the
same or overlapping geographic areas as
that applicant.
17. After the close of bidding, bidders’
license selections, upfront payment
amounts, bidding eligibility, bids, and
other bidding-related actions would be
made publicly available.
18. The Bureau seeks comments on its
proposal to implement anonymous
bidding in Auction 95. The Bureau also
seeks comment on alternatives to the
use of anonymous bidding procedures
for Auction 95. When the Commission
first proposed limited information
disclosure procedures, it did so in
response to analysis suggesting that
under certain circumstances the
competitiveness and economic
efficiency of a simultaneous multipleround auction may be enhanced if such
information is withheld until after the
close of the auction. The Bureau
encourages parties to provide
information about the benefits and costs
of complying with limited information
procedures as compared with the
benefits and costs of alternative
procedures that would provide for the
disclosure of more information on
bidder identities and interests in the
auction. If commenters believe that the
Bureau should not adopt procedures to
limit the disclosure of certain bidderspecific information until after the
auction, they should explain their
reasoning.
iii. Bidding Rounds
19. Auction 95 will consist of
sequential bidding rounds. The initial
bidding schedule will be announced in
a public notice to be released at least
one week before the start of the auction.
20. The Commission will conduct
Auction 95 over the Internet using the
Commission’s Integrated Spectrum
Auction System (FCC Auction System).
Bidders will also have the option of
placing bids by telephone through a
dedicated Auction Bidder Line. The
toll-free telephone number for the
Auction Bidder Line will be provided to
qualified bidders prior to the start of the
auction.
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21. The Bureau proposes to retain 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. Under this proposal, the
Bureau may change the amount of time
for bidding rounds, the amount of time
between rounds, or the number of
rounds per day, depending upon
bidding activity and other factors. The
Bureau seeks comment on this proposal.
Commenters on this issue should
address the role of the bidding schedule
in managing the pace of the auction,
specifically discussing the tradeoffs in
managing auction pace by bidding
schedule changes, by changing the
activity requirements or bid amount
parameters, or by using other means.
iv. Stopping Rule
22. The Bureau has discretion to
establish stopping rules before or during
multiple round auctions in order to
complete the auction within a
reasonable time. For Auction 95, the
Bureau proposes to employ a
simultaneous stopping rule approach,
which means all licenses remain
available for bidding until bidding stops
on every license. More specifically,
bidding will close on all licenses after
the first round in which no bidder
submits any new bids, applies a
proactive waiver, or withdraws any
provisionally winning bids. Thus,
unless the Bureau announces alternative
procedures, the simultaneous stopping
rule will be used in this auction, and
bidding will remain open on all licenses
until bidding stops on every license.
Consequently, it is not possible to
determine in advance how long the
bidding in this auction will last.
23. Further, the Bureau proposes to
retain the discretion to exercise any of
the following options during Auction
95: (a) Use a modified version of the
simultaneous stopping rule that would
close the auction for all licenses after
the first round in which no bidder
applies a waiver, withdraws a
provisionally winning bid, or places any
new bids on a license for which it is not
the provisionally winning bidder. Thus,
absent any other bidding activity, a
bidder placing a new bid on a license
for which it is the provisionally winning
bidder would not keep the auction open
under this modified stopping rule; (b)
Use a modified version of the
simultaneous stopping rule that would
close the auction for all licenses after
the first round in which no bidder
applies a waiver, withdraws a
provisionally winning bid, or places any
new bids on a license that is not FCC
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held. Thus, absent any other bidding
activity, a bidder placing a new bid on
a license that does not already have a
provisionally winning bid (an FCC-held
license) would not keep the auction
open under this modified stopping rule;
(c) Use a modified version of the
simultaneous stopping rule that
combines (a) and (b); (d) Declare the
auction will end after a specified
number of additional rounds (special
stopping rule). If the Bureau invokes
this special stopping rule, it will accept
bids in the specified final round(s), after
which the auction will close; and (e)
Keep the auction open even if no bidder
places any new bids, applies a waiver,
or withdraws any provisionally winning
bids. In this event, the effect will be the
same as if a bidder had applied a
waiver. The activity rule will apply as
usual, and a bidder with insufficient
activity will either lose bidding
eligibility or use a waiver.
24. The Bureau proposes to exercise
these options only in certain
circumstances, for example, where the
auction is proceeding unusually slowly
or quickly, there is minimal overall
bidding activity, or it appears likely that
the auction will not close within a
reasonable period of time or will close
prematurely. Before exercising these
options, the Bureau is likely to attempt
to change the pace of the auction. For
example, the Bureau may adjust the
pace of bidding by changing the number
of bidding rounds per day and/or the
minimum acceptable bids. The Bureau
proposes to retain the discretion to
exercise any of these options with or
without prior announcement during the
auction. The Bureau seeks comment on
these proposals.
v. Information Relating to Auction
Delay, Suspension, or Cancellation
25. For Auction 95, the Bureau
proposes that it may delay, suspend, or
cancel the auction in the event of a
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. The Bureau will notify
participants of any such delay,
suspension or cancellation by public
notice and/or through the FCC Auction
System’s announcement function. If the
auction is delayed or suspended, the
Bureau may, in its sole discretion, elect
to resume the auction starting from the
beginning of the current round or from
some previous round, or cancel the
auction in its entirety. Network
interruption may cause the Bureaus to
delay or suspend the auction. The
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Bureau emphasize that it will exercise
this authority solely at its discretion,
and not as a substitute for situations in
which bidders may wish to apply their
activity rule waivers. The Bureau seeks
comment on this proposal.
B. Auction Procedures
i. Upfront Payments and Bidding
Eligibility
26. The Bureau has delegated
authority and discretion to determine an
appropriate upfront payment for each
license being auctioned, taking into
account such factors as the efficiency of
the auction process and the potential
value of similar licenses. The upfront
payment is a refundable deposit made
by each bidder to establish eligibility to
bid on licenses. Upfront payments that
are related to the specific licenses being
auctioned protect against frivolous or
insincere bidding and provide the
Commission with a source of funds from
which to collect payments owed at the
close of the auction. For Auction 95, the
proposed upfront payments are equal to
the proposed minimum opening bids.
The Bureau seeks comment on this
proposal.
27. The Bureau further proposes that
the amount of the upfront payment
submitted by a bidder will determine its
initial bidding eligibility in bidding
units. The Bureau proposes to assign
each license a specific number of
bidding units, equal to one bidding unit
per dollar of the upfront payment listed
for the license. The specific bidding
units for each license are set forth in the
complete list of licenses available for
Auction 95, available as separate
Attachment A files at https://
wireless.fcc.gov/auctions/95/. The
number of bidding units for a given
license is fixed and does not change
during the auction as prices change. A
bidder may place bids on multiple
licenses, provided that the total number
of bidding units associated with those
licenses does not exceed its current
eligibility. A bidder cannot increase its
eligibility during the auction; it can only
maintain its eligibility or decrease its
eligibility. Thus, in calculating its
upfront payment amount and hence its
initial bidding eligibility, an applicant
must determine the maximum number
of bidding units on which it may wish
to bid (or hold provisionally winning
bids) in any single round, and submit an
upfront payment amount covering that
total number of bidding units. The
Bureau requests comment on these
proposals.
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ii. Activity Rule
28. In order to ensure that the 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. A bidder’s activity
in a round will be the sum of the
bidding units associated with any
licenses upon which it places bids
during the current round and the
bidding units associated with any
licenses for which it holds provisionally
winning bids placed in previous rounds.
Bidders are required to be active on a
specific percentage of their current
bidding eligibility 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.
29. The Bureau proposes to divide the
auction into at least two stages, each
characterized by a different activity
requirement. The auction will start in
Stage One. The Bureau proposes to
advance the auction to the next stage by
announcement during the auction. In
exercising this discretion, the Bureau
will consider a variety of measures of
auction activity, including but not
limited to the percentage of licenses (as
measured in bidding units) on which
there are new bids, the number of new
bids, and the increase in revenue. The
Bureau seeks comment on these
proposals.
30. The Bureau proposes the
following activity requirements, while
noting again that the Bureau retains the
discretion to change stages unilaterally
by announcement during the auction:
Stage One: In each round of the first
stage of the auction, a bidder desiring to
maintain its current bidding eligibility
is required to be active on licenses
representing at least 80 percent of its
current bidding eligibility. Failure to
maintain the required activity level will
result in the use of an activity rule
waiver or a reduction in the bidder’s
bidding eligibility for the next round of
bidding. During Stage One, a bidder’s
reduced eligibility for the next round
will be calculated by multiplying the
bidder’s current round activity by fivefourths (5⁄4). Stage Two: In each round
of the second stage, a bidder desiring to
maintain its current bidding eligibility
is required to be active on 95 percent of
its current bidding eligibility. Failure to
maintain the required activity level will
result in the use of an activity rule
waiver or a reduction in the bidder’s
bidding eligibility for the next round of
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bidding. During Stage Two, a bidder’s
reduced eligibility for the next round
will be calculated by multiplying the
bidder’s current round activity by
twenty-nineteenths (20⁄19).
31. The Bureau requests comment on
these activity requirements. Under this
proposal, the Bureau will retain the
discretion to change the activity
requirements during the auction. For
example, the Bureau could decide to
add an additional stage with a higher
activity requirement, not to transition to
Stage Two if it believes the auction is
progressing satisfactorily under the
Stage One activity requirement, or to
transition to Stage Two with an activity
requirement that is higher or lower than
the 95 percent proposed herein. If the
Bureau exercises this discretion, it will
alert bidders by announcement in the
FCC Auction System.
iii. Activity Rule Waivers and Reducing
Eligibility
32. When a bidder’s eligibility in the
current round is below the required
minimum level, it may preserve its
current level of eligibility through an
activity rule waiver. An activity rule
waiver applies to an entire round of
bidding, not to a particular license.
Activity rule waivers, which can be
either proactive or automatic, are
principally a mechanism for a bidder to
avoid the loss of bidding eligibility in
the event that exigent circumstances
prevent it from bidding in a particular
round.
33. The FCC Auction System assumes
that a bidder that does not meet the
activity requirement would prefer to use
an activity rule waiver (if available)
rather than lose bidding eligibility.
Therefore, the system will automatically
apply a waiver at the end of any bidding
round in which a bidder’s activity level
is below the minimum required unless
(1) the bidder has no activity rule
waivers remaining; or (2) the bidder
overrides the automatic application of a
waiver by reducing eligibility, thereby
meeting the activity requirement. If a
bidder has no waivers remaining and
does not satisfy the required activity
level, the bidder’s current eligibility will
be permanently reduced, possibly
curtailing or eliminating the ability to
place additional bids in the auction.
34. A bidder with insufficient activity
may wish to reduce its bidding
eligibility rather than use an activity
rule waiver. If so, the bidder must
affirmatively override the automatic
waiver mechanism during the bidding
round by using the reduce eligibility
function in the FCC Auction System. In
this case, the bidder’s eligibility is
permanently reduced to bring it into
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compliance with the activity rule.
Reducing eligibility is an irreversible
action; once eligibility has been
reduced, a bidder will not be permitted
to regain its lost bidding eligibility, even
if the round has not yet closed.
35. Under the proposed simultaneous
stopping rule, a bidder may apply an
activity rule waiver proactively as a
means to keep the auction open without
placing a bid. If a bidder proactively
applies an activity rule waiver (using
the apply waiver function in the FCC
Auction System) during a bidding round
in which no bids are placed or
withdrawn, the auction will remain
open and the bidder’s eligibility will be
preserved. An automatic waiver applied
by the FCC Auction System in a round
in which there are no new bids,
withdrawals, or proactive waivers will
not keep the auction open. A bidder
cannot apply a proactive waiver after
bidding in a round, and applying a
proactive waiver will preclude it from
placing any bids in that round.
Applying a waiver is irreversible; once
a proactive waiver is submitted, it
cannot be unsubmitted, even if the
round has not yet closed.
36. Consistent with recent FCC
auctions, the Bureau proposes that each
bidder in Auction 95 be provided with
three activity rule waivers that may be
used at the bidder’s discretion during
the course of the auction. The Bureau
seeks comment on this proposal.
iv. Reserve Price or Minimum Opening
Bids
37. The Commission has directed the
Bureau to seek comment on the use of
a minimum opening bid amount and/or
reserve price prior to the start of each
auction.
38. Normally, a reserve price is an
absolute minimum price below which
an item will not be sold in a given
auction. A minimum opening bid, on
the other hand, is the minimum bid
price set at the beginning of the auction
below which no bids are accepted. It is
generally used to accelerate the
competitive bidding process. It is
possible for the minimum opening bid
and the reserve price to be the same
amount.
39. The Bureau proposes to establish
minimum opening bid amounts for
Auction 95. The Bureau believes that a
minimum opening bid amount, which
has been used in other auctions, is an
effective bidding tool for accelerating
the competitive bidding process. The
Bureau does not propose to establish
separate reserve prices for the licenses
to be offered in Auction 95.
40. As the Bureau did for the last
auction of paging licenses, Auction 87,
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11183
the Bureau proposes to set the minimum
opening bid for each license available in
Auction 95 at $500. The Bureau seeks
comment on this proposal.
41. If commenters believe that these
minimum opening bid amounts will
result in unsold licenses, are not
reasonable amounts, or should instead
operate as reserve prices, they should
explain why this is so and comment on
the desirability of an alternative
approach. If requesting a lower
minimum opening bid amount for a
specific license offered in this auction,
a commenter should justify the
requested amount in detail. The Bureaus
asks commenters to support their claims
with valuation analyses and suggested
amounts or formulas for reserve prices
or minimum opening bids. In
establishing minimum opening bid
amounts, the Bureau particularly seeks
comment on factors that could
reasonably have an impact on valuation
of the spectrum being auctioned,
including levels of incumbency within
these spectrum bands, the availability of
technology to provide service, the size
of the geographic service areas, issues of
interference with other spectrum bands,
and any other relevant factors. The
Bureau has not attempted to adjust
minimum opening bid amounts for
licenses based on precise levels of
incumbency within particular
geographic areas, and has instead
proposed low minimum opening bid
amounts that are intended to reflect
overall incumbency levels. The Bureau
seeks comment on this approach, on
whether the public interest would be
served by having no minimum opening
bid amount or reserve price.
v. Bid Amounts
42. The Bureau proposes that, in each
round, an eligible bidder will be able to
place a bid on a given license using one
or more pre-defined bid amounts. Under
this proposal, the FCC Auction System
interface will list the acceptable bid
amounts for each license. The Bureau
proposes to calculate bid amounts.
a. Minimum Acceptable Bids
43. The first of the acceptable bid
amounts is called the minimum
acceptable bid amount. The minimum
acceptable bid amount for a license will
be equal to its minimum opening bid
amount until there is a provisionally
winning bid for the license. After there
is a provisionally winning bid for a
license, the minimum acceptable bid
amount will be a certain percentage
higher. That is, the FCC will calculate
the minimum acceptable bid amount by
multiplying the provisionally winning
bid amount times one plus the
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minimum acceptable bid percentage. If,
for example, the minimum acceptable
bid percentage is 10 percent, the
minimum acceptable bid amount will
equal (provisionally winning bid
amount) * (1.10), rounded. In the case
of a license for which the provisionally
winning bid has been withdrawn, the
minimum acceptable bid amount will
equal the second highest bid received
for the license. The Bureau proposes to
use a minimum acceptable bid
percentage of 10 percent. This means
that the minimum acceptable bid
amount for a license will be
approximately 10 percent greater than
the provisionally winning bid amount
for the license.
mstockstill on DSK4VPTVN1PROD with NOTICES
b. Additional Bid Amounts
44. The FCC will calculate any
additional bid amounts using the
minimum acceptable bid amount and a
bid increment percentage, which need
not be the same as the percentage used
to calculate the minimum acceptable
bid amount. The first additional
acceptable bid amount equals the
minimum acceptable bid amount times
one plus the bid increment percentage,
rounded. If, for example, the bid
increment percentage is 5 percent, the
calculation is (minimum acceptable bid
amount) * (1 + 0.05), rounded, or
(minimum acceptable bid amount) *
1.05, rounded; the second additional
acceptable bid amount equals the
minimum acceptable bid amount times
one plus two times the bid increment
percentage, rounded, or (minimum
acceptable bid amount) * 1.10, rounded;
etc. The Bureau will round the results
using the Commission’s standard
rounding procedures for auctions. The
Bureau proposes to use a bid increment
percentage of 5 percent.
45. For Auction 95 the Bureau
proposes to start with eight additional
bid amounts (for a total of nine bid
amounts). The Bureau seeks comment
on this proposal. If commenters believe
the Bureau should start with fewer or no
additional bid amounts, they should
address the issue of additional bid
amounts in light of particular
circumstances of Auction 95, including
the nature of the license inventory.
c. Bid Amount Changes
46. The Bureau retains the discretion
to change the minimum acceptable bid
amounts, the minimum acceptable bid
percentage, the bid increment
percentage, and the number of
acceptable bid amounts if the Bureau
determines that circumstances so
dictate. Further, the Bureau retains the
discretion to do so on a license-bylicense basis. The Bureau also retains
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the discretion to limit (a) the amount by
which a minimum acceptable bid for a
license 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. For
example, the Bureau could set a $10,000
limit on increases in minimum
acceptable bid amounts over
provisionally winning bids. Thus, if
calculating a minimum acceptable bid
using the minimum acceptable bid
percentage results in a minimum
acceptable bid amount that is $12,000
higher than the provisionally winning
bid on a license, the minimum
acceptable bid amount would instead be
capped at $10,000 above the
provisionally winning bid. The Bureau
seeks comment on the circumstances
under which the Bureau should employ
such a limit, factors it should consider
when determining the dollar amount of
the limit, and the tradeoffs in setting
such a limit or changing other
parameters, such as changing the
minimum acceptable bid percentage, the
bid increment percentage, or the
number of acceptable bid amounts. If
the Bureau exercises this discretion, it
will alert bidders by announcement in
the FCC Auction System during the
auction.
47. The Bureau seeks comment on
these proposals. Commenters may wish
to address the role of the minimum
acceptable bids and the number of
acceptable bid amounts in managing the
pace of the auction and the tradeoffs in
managing auction pace by changing the
bidding schedule, activity requirements,
or bid amounts, or by using other
means.
vi. Provisionally Winning Bids
48. Provisionally winning bids are
bids that would become final winning
bids if the auction were to close in that
given round. At the end of a bidding
round, the FCC Auction System
determines a provisionally winning bid
for each license based on the highest bid
amount received. If identical high bid
amounts are submitted on a license in
any given round (i.e., tied bids), the FCC
Auction System will use a random
number generator to select a single
provisionally winning bid from among
the tied bids. (The Auction System
assigns a random number to each bid
when the bid is entered. The tied bid
with the highest random number wins
the tiebreaker.) The remaining bidders,
as well as the provisionally winning
bidder, can submit higher bids in
subsequent rounds. However, if the
auction were to end with no other bids
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Sfmt 4703
being placed, the winning bidder would
be the one that placed the provisionally
winning bid. If the license receives any
bids in a subsequent round, the
provisionally winning bid again will be
determined by the highest bid amount
received for the license.
49. A provisionally winning bid will
remain the provisionally winning bid
until there is a higher bid on the license
at the close of a subsequent round,
unless the provisionally winning bid is
withdrawn. The Bureau reminds
bidders that provisionally winning bids
count toward activity for purposes of
the activity rule.
vii. Bid Removal
50. For Auction 95, the Bureau
proposes the following bid removal
procedures. Before the close of a
bidding round, a bidder has the option
of removing any bid placed in that
round. By removing a selected bid in the
FCC Auction System, a bidder may
effectively undo any bid placed within
that round. In contrast to the bid
withdrawal provisions, a bidder
removing a bid placed in the same
round is not subject to a withdrawal
payment. Once a round closes, a bidder
may no longer remove a bid. The Bureau
seeks comment on this bid removal
proposal.
viii. Bid Withdrawal
51. The Bureau seeks comment on the
following bid withdrawal procedures for
Auction 95. When permitted in an
auction, bid withdrawals provide a
bidder with the option of withdrawing
bids placed in prior rounds that have
become provisionally winning bids. A
bidder may withdraw its provisionally
winning bids using the withdraw bids
function in the FCC Auction System. A
bidder that withdraws its provisionally
winning bid(s), if permitted, is subject
to the bid withdrawal payment
provisions of the Commission rules.
52. The Bureau has discretion in
managing the auction to limit the
number of withdrawals to prevent any
bidding abuses. The Commission has
stated that the Bureau should exercise
its discretion, consider limiting the
number of rounds in which bidders may
withdraw bids, and prevent bidders
from bidding on a particular market if
the Bureau finds that a bidder is abusing
the Commission’s bid withdrawal
procedures.
53. For Auction 95, the Bureau
proposes to limit each bidder to
withdrawing provisionally winning bids
in only one round during the course of
the auction. To permit a bidder to
withdraw bids in more than one round
may encourage insincere bidding or the
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use of withdrawals for anti-competitive
purposes. The round in which
withdrawals may be used will be at the
bidder’s discretion, and there is no limit
on the number of provisionally winning
bids that may be withdrawn during that
round. Withdrawals must be in
accordance with the Commission’s
rules, including the bid withdrawal
payment provisions specified in 47 CFR
1.2104(g). The Bureau seeks comment
on these bid withdrawal procedures. If
commenters believe that each bidder
should be allowed to withdraw
provisionally winning bids in more than
one round during the course of the
auction, they should state how many
bid withdrawal rounds they seek and
explain what specific factors lead them
to that conclusion. If commenters
believe that bidders in this auction
should not be permitted to withdraw
any bids, they should discuss their
reasoning for this suggestion.
mstockstill on DSK4VPTVN1PROD with NOTICES
C. Post-Auction Payments
i. Interim Withdrawal Payment
Percentage
54. The Bureau seeks comment on the
appropriate percentage of a withdrawn
bid that should be assessed as an
interim withdrawal payment in the
event that a final withdrawal payment
cannot be determined at the close of the
auction. In general, the Commission’s
rules provide that a bidder that
withdraws a bid during an auction is
subject to a withdrawal payment equal
to the difference between the amount of
the withdrawn bid and the amount of
the winning bid in the same or
subsequent auction(s). If a bid is
withdrawn and no subsequent higher
bid is placed and/or the license is not
won in the same auction, the final
withdrawal payment cannot be
calculated until after the close of a
subsequent auction in which a higher
bid for the license (or the equivalent to
the license) is placed or the license is
won. When that final payment cannot
yet be calculated, the bidder responsible
for the withdrawn bid is assessed an
interim bid withdrawal payment, which
will be applied toward any final bid
withdrawal payment that is ultimately
assessed. 47 CFR 1.2104(g)(1) requires
that the percentage of the withdrawn
bid to be assessed as an interim bid
withdrawal payment be between three
percent and twenty percent and that it
be set in advance of the auction.
55. The Commission has determined
that the level of the interim withdrawal
payment in a particular auction will be
based on the nature of the service and
the inventory of the licenses being
offered. The Commission has noted that
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it may impose a higher interim
withdrawal payment percentage to deter
the anti-competitive use of withdrawals
when, for example, bidders likely will
not need to aggregate the licenses being
offered in the auction, such as when few
licenses are offered that are on adjacent
frequencies or in adjacent areas, or
when there are few synergies to be
captured by combining licenses. With
respect to the licenses being offered in
Auction 95, the service rules permit a
variety of fixed, mobile, and paging
services, though the opportunities for
combining licenses on adjacent
frequencies or in adjacent areas are
more limited than has been the case in
previous auctions of paging licenses.
Balancing the potential need for bidders
to use withdrawals to avoid winning
incomplete combinations of licenses
with the Bureau’s interest in deterring
undesirable strategic use of
withdrawals, the Bureau proposes a
percentage below the maximum twenty
percent permitted under the current
rules but above the three percent
previously provided by the
Commission’s rules. Specifically, the
Bureau proposes to establish an interim
bid withdrawal payment of ten percent
of the withdrawn bid for this auction.
The Bureau seeks comment on this
proposal.
ii. Additional Default Payment
Percentage
56. Any winning bidder that defaults
or is disqualified after the close of an
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
and timely final payment, or is
otherwise disqualified) is liable for a
default payment under 47 CFR
1.2104(g)(2). This payment consists of a
deficiency payment, equal to the
difference between the amount of the
Auction 95 bidder’s winning bid and
the amount of the winning bid the next
time a license 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.
57. The Commission’s rules provide
that, in advance of each auction, it will
establish a percentage between three
percent and twenty percent of the
applicable bid to be assessed as an
additional default payment. As the
Commission has indicated, the level of
this additional payment in each auction
will be based on the nature of the
service and the licenses being offered.
58. For Auction 95, the Bureau
proposes to establish an additional
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11185
default payment of ten percent. Defaults
weaken the integrity of the auction
process and may impede the
deployment of service to the public, and
an additional ten percent default
payment will be more effective in
deterring defaults than the three percent
used in some earlier auctions. At the
same time, the Bureau does not believe
the detrimental effects of any defaults in
Auction 95 are likely to be unusually
great. The Bureau seeks comment on
this proposal.
V. Ex Parte Rules
59. This proceeding has been
designated as a permit-but-disclose
proceeding in accordance with the
Commission’s ex parte rules. Persons
making oral ex parte presentations are
reminded that memoranda summarizing
the presentations must contain
summaries of the substance of the
presentations and not merely a listing of
the subjects discussed. More than a one
or two sentence description of the views
and arguments presented is generally
required. Other provisions pertaining to
oral and written ex parte presentations
in permit-but-disclose proceedings are
set forth in 47 CFR 1.1206(b).
Federal Communications Commission.
Gary D. Michaels,
Deputy Chief, Auctions and Spectrum Access
Division, WTB.
[FR Doc. 2013–03493 Filed 2–14–13; 8:45 am]
BILLING CODE 6712–01–P
FEDERAL DEPOSIT INSURANCE
CORPORATION
Notice to All Interested Parties of the
Termination of the Receiverships of
10016 Main Street Bank, Northville, MI
Notice is hereby given that the Federal
Deposit Insurance Corporation (‘‘FDIC’’)
as Receiver for Main Street Bank,
Northville, Michigan (‘‘the Receiver’’)
intends to terminate its receivership for
said institution. The FDIC was
appointed receiver of Main Street Bank
on October 10, 2008. The liquidation of
the receivership assets has been
completed. To the extent permitted by
available funds and in accordance with
law, the Receiver will be making a final
dividend payment to proven creditors.
Based upon the foregoing, the
Receiver has determined that the
continued existence of the receivership
will serve no useful purpose.
Consequently, notice is given that the
receivership shall be terminated, to be
effective no sooner than thirty days after
the date of this Notice. If any person
wishes to comment concerning the
E:\FR\FM\15FEN1.SGM
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Agencies
[Federal Register Volume 78, Number 32 (Friday, February 15, 2013)]
[Notices]
[Pages 11179-11185]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-03493]
=======================================================================
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
[AU Docket No. 13-12; DA 13-60]
Auction of Lower and Upper Paging Bands Licenses Scheduled for
July 16, 2013; Comment Sought on Competitive Bidding Procedures for
Auction 95
AGENCY: Federal Communications Commission.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: This document announces the auction of certain Paging Bands
licenses scheduled to commence on July 16, 2013. This document also
seeks comment on competitive bidding procedures for Auction 95.
DATES: Comments are due on or before February 22, 2013, and reply
comments are due on or before March 14, 2013.
ADDRESSES: All filings in response to this public notice must refer to
AU Docket No. 13-12. The Wireless Telecommunications Bureau strongly
encourages interested parties to file comments electronically, and
request that an additional copy of all comments and reply comments be
submitted electronically to the following address: auction95@fcc.gov.
Comments may be submitted by any of the following methods:
[ssquf] Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
[ssquf] Federal Communications Commission's Web Site: https://fjallfoss.fcc.gov/ecfs2/. Follow the instructions for submitting
comments.
[ssquf] Paper Filers: Parties who choose to file by paper must file
an original and four copies of each filing. Filings can be sent by hand
or messenger delivery, by commercial overnight courier, or by first-
class or overnight U.S. Postal Service mail. All filings must be
addressed to the Commission's Secretary, Attn: WTB/ASAD, Office of the
Secretary, Federal Communications Commission.
[ssquf] All hand-delivered or messenger-delivered paper filings for
the Commission's Secretary must be delivered to FCC Headquarters at 445
12th Street SW., Room TW-A325, Washington, DC 20554. All hand
deliveries must be held together with rubber bands or fasteners. Any
envelopes must be disposed of before entering the building.
[ssquf] Commercial overnight mail (other than U.S. Postal Service
Express Mail
[[Page 11180]]
and Priority Mail) must be sent to 9300 East Hampton Drive, Capitol
Heights, MD 20743.
[ssquf] U.S. Postal Service first-class, Express, and Priority mail
must be addressed to 445 12th Street SW., Washington, DC 20554.
[ssquf] People with Disabilities: Contact the FCC to request
reasonable accommodations (accessible format documents, sign language
interpreters, CART, etc.) by email: FCC504@fcc.gov or phone: 202-418-
0530 or TTY: 202-418-0432.
FOR FURTHER INFORMATION CONTACT: Wireless Telecommunications Bureau,
Auctions and Spectrum Access Division: For auction legal questions:
Howard Davenport at (202) 418-0660; for general auction questions:
Debbie Smith or Linda Sanderson at (717) 338-2868. Mobility Division:
For Paging service rule questions: Kathy Harris (legal) or Keith Harper
(technical) at (202) 418-0620.
SUPPLEMENTARY INFORMATION: This is a summary of the Auction 95 Comment
Public Notice released on February 1, 2013. The complete text of the
Auction 95 Comment Public Notice, including an attachment and related
Commission documents, is available for public inspection and copying
from 8:00 a.m. to 4:30 p.m. Eastern Time (ET) Monday through Thursday
or from 8:00 a.m. to 11:30 a.m. ET on Fridays in the FCC Reference
Information Center, 445 12th Street SW., Room CY-A257, Washington, DC
20554. The Auction 95 Comment Public Notice and related Commission
documents also may be purchased from the Commission's duplicating
contractor, Best Copy and Printing, Inc. (BCPI), 445 12th Street SW.,
Room CY-B402, Washington, DC 20554, telephone 202-488-5300, fax 202-
488-5563, or you may contact BCPI at its Web site: https://www.BCPIWEB.com. When ordering documents from BCPI, please provide the
appropriate FCC document number, for example, DA 13-60. The Auction 95
Comment Public Notice and related documents also are available on the
Internet at the Commission's Web site: https://wireless.fcc.gov/auctions/95/, or by using the search function for AU Docket No. 13-12
on the Commission's Electronic Comment Filing System (ECFS) web page at
https://www.fcc.gov/cgb/ecfs/.
I. Introduction
1. The Wireless Telecommunications Bureau (Bureau) announces an
auction of 5,905 paging licenses to commence on July 16, 2013, and is
designated as Auction 95.) The Bureau seeks comment on the procedures
to be used for this auction. The licenses available in Auction 95
consist of 4,902 licenses in the lower paging bands (35-36 MHz, 43-44
MHz, 152-159 MHz, 454-460 MHz) and 1,003 licenses in the upper paging
bands (929-931 MHz).
II. Licenses To Be Offered in Auction 95
2. Auction 95 will offer licenses that remained unsold from
previous auctions, licenses on which a winning bidder in a previous
auction defaulted, and licenses for spectrum previously associated with
licenses that cancelled or terminated. In a few cases, the available
license does not cover the entire geographic area due to an excluded
area or previous partitioning.
3. Attachment A to the Auction 95 Comment Public Notice provides a
summary of the licenses available in Auction 95. Due to the large
number of licenses in Auction 95, the complete list of licenses
available for this auction will be provided in electronic format only,
available as separate Attachment A files at https://wireless.fcc.gov/auctions/95/.
A. License Descriptions
4. The Commission has concluded that the lower band licenses should
be awarded in each of the 175 geographic areas known as Economic Areas
(EAs), and the upper bands licenses should be awarded in each of the 51
geographic areas known as Major Economic Areas (MEAs). These EAs and
MEAs encompass the United States, Guam, the Northern Mariana Islands,
Puerto Rico, the U.S. Virgin Islands, and American Samoa.
5. Tables containing the block/frequency cross-reference list for
the paging bands are included in Attachment B to the Auction 95 Comment
Public Notice. These licenses are limited to bandwidths of 20 kilohertz
(kHz) or 20 kHz pairs (40 kHz total). Licensees may use the spectrum to
provide (1) one-way messaging, (2) two-way messaging, and (3) fixed
wireless services. Provision of these services is subject to the
technical limitations set forth for the service in Part 22 of the
Commission's rules.
B. Incumbency Issues
6. There are pre-existing paging incumbent licenses. Incumbent
(non-geographic) paging licensees operating under their existing
authorizations are entitled to full protection from co-channel
interference. Geographic area licensees are likewise afforded co-
channel interference protection from incumbent licensees. Geographic
area licensees are obligated to resolve possible interference concerns
of adjacent geographic area licensees by negotiating a mutually
acceptable agreement with the neighboring geographic licensee.
III. Due Diligence
7. Each potential bidder is solely responsible for investigating
and evaluating all technical and marketplace factors that may have a
bearing on the value of the licenses that it is seeking in this
auction. Each bidder is responsible for assuring that, if it wins a
license, it 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. Each
applicant should be aware that an FCC auction represents an opportunity
to become an FCC licensee in the paging 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 license constitute a guarantee of business
success.
8. An applicant should perform its due diligence research and
analysis before proceeding, as it would with any new business venture.
Each potential bidder should perform technical analyses and/or refresh
any previous analyses to assure itself that, should it become a winning
bidder for any Auction 95 license, it will be able to build and operate
facilities that will fully comply with all applicable technical and
legal requirements. The Bureau strongly encourages each applicant to
inspect any prospective transmitter sites located in, or near, the
geographic area for which it plans to bid; confirm the availability of
such sites; and familiarize itself with the Commission's rules
regarding the National Environmental Policy Act.
9. The Bureau strongly encourages each applicant to conduct its own
research prior to Auction 95 in order to determine the existence of
pending administrative, rulemaking, or judicial proceedings that might
affect its decisions regarding participation in the auction.
10. The Bureau strongly encourages participants in Auction 95 to
continue such research throughout the auction. The due diligence
considerations mentioned in the Auction 95 Comment Public Notice does
not comprise an exhaustive list of steps that should be undertaken
prior to participating in this auction. As always, the burden is on the
potential bidder to determine how much research to undertake, depending
upon
[[Page 11181]]
the specific facts and circumstances related to its interests.
IV. Bureau Seeks Comment on Auction Procedures
11. The Commission directed the Bureau, under delegated authority,
to seek comment on a variety of auction-specific procedures prior to
the start of each auction. Therefore the Bureau seeks comment on the
following issues relating to the conduct of Auction 95.
A. Auction Structure
i. Simultaneous Multiple-Round Auction Design
12. The Bureau proposes to auction all licenses included in Auction
95 using the Commission's standard simultaneous multiple-round auction
format. This type of auction offers every license for bid at the same
time and consists of successive bidding rounds in which eligible
bidders may place bids on individual licenses. Typically, bidding
remains open on all licenses until bidding stops on every license. The
Bureau seeks comment on this proposal.
ii. Anonymous Bidding
13. In several prior auctions the Commission has adopted procedures
to limit the disclosure of certain bidder-specific information until
after the auction. Consistent with that practice, the Bureau proposes
to conduct Auction 95 using certain procedures for limited information
disclosure or anonymous bidding. Specifically, the Bureau proposes to
withhold, until after the close of bidding, public release of (1)
bidders' license selections on their short-form applications (FCC Form
175), (2) the amounts of bidders' upfront payments and bidding
eligibility, and (3) information that may reveal the identities of
bidders placing bids and taking other bidding-related actions.
14. Under these proposed limited information procedures, the amount
of every bid placed and whether a bid was withdrawn would be disclosed
after the close of every round, but the identities of bidders placing
specific bids or withdrawals and the net bid amounts would not be
disclosed until after the close of the auction.
15. Bidders would have access to additional information about their
own bids. For example, bidders would be able to view their own level of
eligibility, before and during the auction, through the Commission's
Integrated Spectrum Auction System (ISAS or FCC Auction System).
16. Moreover, for the purpose of complying with 47 CFR 1.2105(c)
prohibiting certain communications between applicants (formerly
referred to as the anti-collusion rule), applicants would be made aware
of other applicants with which they will not be permitted to cooperate,
collaborate, or communicate, including discussing bids, bidding
strategies, or post-auction market structure. Specifically, the Bureau
would notify separately each applicant in Auction 95 whether applicants
with short-form applications to participate in pending auctions,
including but not limited to Auction 95, have applied for licenses in
any of the same or overlapping geographic areas as that applicant.
17. After the close of bidding, bidders' license selections,
upfront payment amounts, bidding eligibility, bids, and other bidding-
related actions would be made publicly available.
18. The Bureau seeks comments on its proposal to implement
anonymous bidding in Auction 95. The Bureau also seeks comment on
alternatives to the use of anonymous bidding procedures for Auction 95.
When the Commission first proposed limited information disclosure
procedures, it did so in response to analysis suggesting that under
certain circumstances the competitiveness and economic efficiency of a
simultaneous multiple-round auction may be enhanced if such information
is withheld until after the close of the auction. The Bureau encourages
parties to provide information about the benefits and costs of
complying with limited information procedures as compared with the
benefits and costs of alternative procedures that would provide for the
disclosure of more information on bidder identities and interests in
the auction. If commenters believe that the Bureau should not adopt
procedures to limit the disclosure of certain bidder-specific
information until after the auction, they should explain their
reasoning.
iii. Bidding Rounds
19. Auction 95 will consist of sequential bidding rounds. The
initial bidding schedule will be announced in a public notice to be
released at least one week before the start of the auction.
20. The Commission will conduct Auction 95 over the Internet using
the Commission's Integrated Spectrum Auction System (FCC Auction
System). Bidders will also have the option of placing bids by telephone
through a dedicated Auction Bidder Line. The toll-free telephone number
for the Auction Bidder Line will be provided to qualified bidders prior
to the start of the auction.
21. The Bureau proposes to retain 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. Under this proposal, the Bureau may change
the amount of time for bidding rounds, the amount of time between
rounds, or the number of rounds per day, depending upon bidding
activity and other factors. The Bureau seeks comment on this proposal.
Commenters on this issue should address the role of the bidding
schedule in managing the pace of the auction, specifically discussing
the tradeoffs in managing auction pace by bidding schedule changes, by
changing the activity requirements or bid amount parameters, or by
using other means.
iv. Stopping Rule
22. The Bureau has discretion to establish stopping rules before or
during multiple round auctions in order to complete the auction within
a reasonable time. For Auction 95, the Bureau proposes to employ a
simultaneous stopping rule approach, which means all licenses remain
available for bidding until bidding stops on every license. More
specifically, bidding will close on all licenses after the first round
in which no bidder submits any new bids, applies a proactive waiver, or
withdraws any provisionally winning bids. Thus, unless the Bureau
announces alternative procedures, the simultaneous stopping rule will
be used in this auction, and bidding will remain open on all licenses
until bidding stops on every license. Consequently, it is not possible
to determine in advance how long the bidding in this auction will last.
23. Further, the Bureau proposes to retain the discretion to
exercise any of the following options during Auction 95: (a) Use a
modified version of the simultaneous stopping rule that would close the
auction for all licenses after the first round in which no bidder
applies a waiver, withdraws a provisionally winning bid, or places any
new bids on a license for which it is not the provisionally winning
bidder. Thus, absent any other bidding activity, a bidder placing a new
bid on a license for which it is the provisionally winning bidder would
not keep the auction open under this modified stopping rule; (b) Use a
modified version of the simultaneous stopping rule that would close the
auction for all licenses after the first round in which no bidder
applies a waiver, withdraws a provisionally winning bid, or places any
new bids on a license that is not FCC
[[Page 11182]]
held. Thus, absent any other bidding activity, a bidder placing a new
bid on a license that does not already have a provisionally winning bid
(an FCC-held license) would not keep the auction open under this
modified stopping rule; (c) Use a modified version of the simultaneous
stopping rule that combines (a) and (b); (d) Declare the auction will
end after a specified number of additional rounds (special stopping
rule). If the Bureau invokes this special stopping rule, it will accept
bids in the specified final round(s), after which the auction will
close; and (e) Keep the auction open even if no bidder places any new
bids, applies a waiver, or withdraws any provisionally winning bids. In
this event, the effect will be the same as if a bidder had applied a
waiver. The activity rule will apply as usual, and a bidder with
insufficient activity will either lose bidding eligibility or use a
waiver.
24. The Bureau proposes to exercise these options only in certain
circumstances, for example, where the auction is proceeding unusually
slowly or quickly, there is minimal overall bidding activity, or it
appears likely that the auction will not close within a reasonable
period of time or will close prematurely. Before exercising these
options, the Bureau is likely to attempt to change the pace of the
auction. For example, the Bureau may adjust the pace of bidding by
changing the number of bidding rounds per day and/or the minimum
acceptable bids. The Bureau proposes to retain the discretion to
exercise any of these options with or without prior announcement during
the auction. The Bureau seeks comment on these proposals.
v. Information Relating to Auction Delay, Suspension, or Cancellation
25. For Auction 95, the Bureau proposes that it may delay, suspend,
or cancel the auction in the event of a 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. The
Bureau will notify participants of any such delay, suspension or
cancellation by public notice and/or through the FCC Auction System's
announcement function. If the auction is delayed or suspended, the
Bureau may, in its sole discretion, elect to resume the auction
starting from the beginning of the current round or from some previous
round, or cancel the auction in its entirety. Network interruption may
cause the Bureaus to delay or suspend the auction. The Bureau emphasize
that it will exercise this authority solely at its discretion, and not
as a substitute for situations in which bidders may wish to apply their
activity rule waivers. The Bureau seeks comment on this proposal.
B. Auction Procedures
i. Upfront Payments and Bidding Eligibility
26. The Bureau has delegated authority and discretion to determine
an appropriate upfront payment for each license being auctioned, taking
into account such factors as the efficiency of the auction process and
the potential value of similar licenses. The upfront payment is a
refundable deposit made by each bidder to establish eligibility to bid
on licenses. Upfront payments that are related to the specific licenses
being auctioned protect against frivolous or insincere bidding and
provide the Commission with a source of funds from which to collect
payments owed at the close of the auction. For Auction 95, the proposed
upfront payments are equal to the proposed minimum opening bids. The
Bureau seeks comment on this proposal.
27. The Bureau further proposes that the amount of the upfront
payment submitted by a bidder will determine its initial bidding
eligibility in bidding units. The Bureau proposes to assign each
license a specific number of bidding units, equal to one bidding unit
per dollar of the upfront payment listed for the license. The specific
bidding units for each license are set forth in the complete list of
licenses available for Auction 95, available as separate Attachment A
files at https://wireless.fcc.gov/auctions/95/. The number of bidding
units for a given license is fixed and does not change during the
auction as prices change. A bidder may place bids on multiple licenses,
provided that the total number of bidding units associated with those
licenses does not exceed its current eligibility. A bidder cannot
increase its eligibility during the auction; it can only maintain its
eligibility or decrease its eligibility. Thus, in calculating its
upfront payment amount and hence its initial bidding eligibility, an
applicant must determine the maximum number of bidding units on which
it may wish to bid (or hold provisionally winning bids) in any single
round, and submit an upfront payment amount covering that total number
of bidding units. The Bureau requests comment on these proposals.
ii. Activity Rule
28. In order to ensure that the 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. A bidder's activity in a round will be the sum of
the bidding units associated with any licenses upon which it places
bids during the current round and the bidding units associated with any
licenses for which it holds provisionally winning bids placed in
previous rounds. Bidders are required to be active on a specific
percentage of their current bidding eligibility 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.
29. The Bureau proposes to divide the auction into at least two
stages, each characterized by a different activity requirement. The
auction will start in Stage One. The Bureau proposes to advance the
auction to the next stage by announcement during the auction. In
exercising this discretion, the Bureau will consider a variety of
measures of auction activity, including but not limited to the
percentage of licenses (as measured in bidding units) on which there
are new bids, the number of new bids, and the increase in revenue. The
Bureau seeks comment on these proposals.
30. The Bureau proposes the following activity requirements, while
noting again that the Bureau retains the discretion to change stages
unilaterally by announcement during the auction: Stage One: In each
round of the first stage of the auction, a bidder desiring to maintain
its current bidding eligibility is required to be active on licenses
representing at least 80 percent of its current bidding eligibility.
Failure to maintain the required activity level will result in the use
of an activity rule waiver or a reduction in the bidder's bidding
eligibility for the next round of bidding. During Stage One, a bidder's
reduced eligibility for the next round will be calculated by
multiplying the bidder's current round activity by five-fourths (\5/
4\). Stage Two: In each round of the second stage, a bidder desiring to
maintain its current bidding eligibility is required to be active on 95
percent of its current bidding eligibility. Failure to maintain the
required activity level will result in the use of an activity rule
waiver or a reduction in the bidder's bidding eligibility for the next
round of
[[Page 11183]]
bidding. During Stage Two, a bidder's reduced eligibility for the next
round will be calculated by multiplying the bidder's current round
activity by twenty-nineteenths (\20/19\).
31. The Bureau requests comment on these activity requirements.
Under this proposal, the Bureau will retain the discretion to change
the activity requirements during the auction. For example, the Bureau
could decide to add an additional stage with a higher activity
requirement, not to transition to Stage Two if it believes the auction
is progressing satisfactorily under the Stage One activity requirement,
or to transition to Stage Two with an activity requirement that is
higher or lower than the 95 percent proposed herein. If the Bureau
exercises this discretion, it will alert bidders by announcement in the
FCC Auction System.
iii. Activity Rule Waivers and Reducing Eligibility
32. When a bidder's eligibility in the current round is below the
required minimum level, it may preserve its current level of
eligibility through an activity rule waiver. An activity rule waiver
applies to an entire round of bidding, not to a particular license.
Activity rule waivers, which can be either proactive or automatic, are
principally a mechanism for a bidder to avoid the loss of bidding
eligibility in the event that exigent circumstances prevent it from
bidding in a particular round.
33. The FCC Auction System assumes that a bidder that does not meet
the activity requirement would prefer to use an activity rule waiver
(if available) rather than lose bidding eligibility. Therefore, the
system will automatically apply a waiver at the end of any bidding
round in which a bidder's activity level is below the minimum required
unless (1) the bidder has no activity rule waivers remaining; or (2)
the bidder overrides the automatic application of a waiver by reducing
eligibility, thereby meeting the activity requirement. If a bidder has
no waivers remaining and does not satisfy the required activity level,
the bidder's current eligibility will be permanently reduced, possibly
curtailing or eliminating the ability to place additional bids in the
auction.
34. A bidder with insufficient activity may wish to reduce its
bidding eligibility rather than use an activity rule waiver. If so, the
bidder must affirmatively override the automatic waiver mechanism
during the bidding round by using the reduce eligibility function in
the FCC Auction System. In this case, the bidder's eligibility is
permanently reduced to bring it into compliance with the activity rule.
Reducing eligibility is an irreversible action; once eligibility has
been reduced, a bidder will not be permitted to regain its lost bidding
eligibility, even if the round has not yet closed.
35. Under the proposed simultaneous stopping rule, a bidder may
apply an activity rule waiver proactively as a means to keep the
auction open without placing a bid. If a bidder proactively applies an
activity rule waiver (using the apply waiver function in the FCC
Auction System) during a bidding round in which no bids are placed or
withdrawn, the auction will remain open and the bidder's eligibility
will be preserved. An automatic waiver applied by the FCC Auction
System in a round in which there are no new bids, withdrawals, or
proactive waivers will not keep the auction open. A bidder cannot apply
a proactive waiver after bidding in a round, and applying a proactive
waiver will preclude it from placing any bids in that round. Applying a
waiver is irreversible; once a proactive waiver is submitted, it cannot
be unsubmitted, even if the round has not yet closed.
36. Consistent with recent FCC auctions, the Bureau proposes that
each bidder in Auction 95 be provided with three activity rule waivers
that may be used at the bidder's discretion during the course of the
auction. The Bureau seeks comment on this proposal.
iv. Reserve Price or Minimum Opening Bids
37. The Commission has directed the Bureau to seek comment on the
use of a minimum opening bid amount and/or reserve price prior to the
start of each auction.
38. Normally, a reserve price is an absolute minimum price below
which an item will not be sold in a given auction. A minimum opening
bid, on the other hand, is the minimum bid price set at the beginning
of the auction below which no bids are accepted. It is generally used
to accelerate the competitive bidding process. It is possible for the
minimum opening bid and the reserve price to be the same amount.
39. The Bureau proposes to establish minimum opening bid amounts
for Auction 95. The Bureau believes that a minimum opening bid amount,
which has been used in other auctions, is an effective bidding tool for
accelerating the competitive bidding process. The Bureau does not
propose to establish separate reserve prices for the licenses to be
offered in Auction 95.
40. As the Bureau did for the last auction of paging licenses,
Auction 87, the Bureau proposes to set the minimum opening bid for each
license available in Auction 95 at $500. The Bureau seeks comment on
this proposal.
41. If commenters believe that these minimum opening bid amounts
will result in unsold licenses, are not reasonable amounts, or should
instead operate as reserve prices, they should explain why this is so
and comment on the desirability of an alternative approach. If
requesting a lower minimum opening bid amount for a specific license
offered in this auction, a commenter should justify the requested
amount in detail. The Bureaus asks commenters to support their claims
with valuation analyses and suggested amounts or formulas for reserve
prices or minimum opening bids. In establishing minimum opening bid
amounts, the Bureau particularly seeks comment on factors that could
reasonably have an impact on valuation of the spectrum being auctioned,
including levels of incumbency within these spectrum bands, the
availability of technology to provide service, the size of the
geographic service areas, issues of interference with other spectrum
bands, and any other relevant factors. The Bureau has not attempted to
adjust minimum opening bid amounts for licenses based on precise levels
of incumbency within particular geographic areas, and has instead
proposed low minimum opening bid amounts that are intended to reflect
overall incumbency levels. The Bureau seeks comment on this approach,
on whether the public interest would be served by having no minimum
opening bid amount or reserve price.
v. Bid Amounts
42. The Bureau proposes that, in each round, an eligible bidder
will be able to place a bid on a given license using one or more pre-
defined bid amounts. Under this proposal, the FCC Auction System
interface will list the acceptable bid amounts for each license. The
Bureau proposes to calculate bid amounts.
a. Minimum Acceptable Bids
43. The first of the acceptable bid amounts is called the minimum
acceptable bid amount. The minimum acceptable bid amount for a license
will be equal to its minimum opening bid amount until there is a
provisionally winning bid for the license. After there is a
provisionally winning bid for a license, the minimum acceptable bid
amount will be a certain percentage higher. That is, the FCC will
calculate the minimum acceptable bid amount by multiplying the
provisionally winning bid amount times one plus the
[[Page 11184]]
minimum acceptable bid percentage. If, for example, the minimum
acceptable bid percentage is 10 percent, the minimum acceptable bid
amount will equal (provisionally winning bid amount) * (1.10), rounded.
In the case of a license for which the provisionally winning bid has
been withdrawn, the minimum acceptable bid amount will equal the second
highest bid received for the license. The Bureau proposes to use a
minimum acceptable bid percentage of 10 percent. This means that the
minimum acceptable bid amount for a license will be approximately 10
percent greater than the provisionally winning bid amount for the
license.
b. Additional Bid Amounts
44. The FCC will calculate any additional bid amounts using the
minimum acceptable bid amount and a bid increment percentage, which
need not be the same as the percentage used to calculate the minimum
acceptable bid amount. The first additional acceptable bid amount
equals the minimum acceptable bid amount times one plus the bid
increment percentage, rounded. If, for example, the bid increment
percentage is 5 percent, the calculation is (minimum acceptable bid
amount) * (1 + 0.05), rounded, or (minimum acceptable bid amount) *
1.05, rounded; the second additional acceptable bid amount equals the
minimum acceptable bid amount times one plus two times the bid
increment percentage, rounded, or (minimum acceptable bid amount) *
1.10, rounded; etc. The Bureau will round the results using the
Commission's standard rounding procedures for auctions. The Bureau
proposes to use a bid increment percentage of 5 percent.
45. For Auction 95 the Bureau proposes to start with eight
additional bid amounts (for a total of nine bid amounts). The Bureau
seeks comment on this proposal. If commenters believe the Bureau should
start with fewer or no additional bid amounts, they should address the
issue of additional bid amounts in light of particular circumstances of
Auction 95, including the nature of the license inventory.
c. Bid Amount Changes
46. The Bureau retains the discretion to change the minimum
acceptable bid amounts, the minimum acceptable bid percentage, the bid
increment percentage, and the number of acceptable bid amounts if the
Bureau determines that circumstances so dictate. Further, the Bureau
retains the discretion to do so on a license-by-license basis. The
Bureau also retains the discretion to limit (a) the amount by which a
minimum acceptable bid for a license 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. For example, the Bureau could set a
$10,000 limit on increases in minimum acceptable bid amounts over
provisionally winning bids. Thus, if calculating a minimum acceptable
bid using the minimum acceptable bid percentage results in a minimum
acceptable bid amount that is $12,000 higher than the provisionally
winning bid on a license, the minimum acceptable bid amount would
instead be capped at $10,000 above the provisionally winning bid. The
Bureau seeks comment on the circumstances under which the Bureau should
employ such a limit, factors it should consider when determining the
dollar amount of the limit, and the tradeoffs in setting such a limit
or changing other parameters, such as changing the minimum acceptable
bid percentage, the bid increment percentage, or the number of
acceptable bid amounts. If the Bureau exercises this discretion, it
will alert bidders by announcement in the FCC Auction System during the
auction.
47. The Bureau seeks comment on these proposals. Commenters may
wish to address the role of the minimum acceptable bids and the number
of acceptable bid amounts in managing the pace of the auction and the
tradeoffs in managing auction pace by changing the bidding schedule,
activity requirements, or bid amounts, or by using other means.
vi. Provisionally Winning Bids
48. Provisionally winning bids are bids that would become final
winning bids if the auction were to close in that given round. At the
end of a bidding round, the FCC Auction System determines a
provisionally winning bid for each license based on the highest bid
amount received. If identical high bid amounts are submitted on a
license in any given round (i.e., tied bids), the FCC Auction System
will use a random number generator to select a single provisionally
winning bid from among the tied bids. (The Auction System assigns a
random number to each bid when the bid is entered. The tied bid with
the highest random number wins the tiebreaker.) The remaining bidders,
as well as the provisionally winning bidder, can submit higher bids in
subsequent rounds. However, if the auction were to end with no other
bids being placed, the winning bidder would be the one that placed the
provisionally winning bid. If the license receives any bids in a
subsequent round, the provisionally winning bid again will be
determined by the highest bid amount received for the license.
49. A provisionally winning bid will remain the provisionally
winning bid until there is a higher bid on the license at the close of
a subsequent round, unless the provisionally winning bid is withdrawn.
The Bureau reminds bidders that provisionally winning bids count toward
activity for purposes of the activity rule.
vii. Bid Removal
50. For Auction 95, the Bureau proposes the following bid removal
procedures. Before the close of a bidding round, a bidder has the
option of removing any bid placed in that round. By removing a selected
bid in the FCC Auction System, a bidder may effectively undo any bid
placed within that round. In contrast to the bid withdrawal provisions,
a bidder removing a bid placed in the same round is not subject to a
withdrawal payment. Once a round closes, a bidder may no longer remove
a bid. The Bureau seeks comment on this bid removal proposal.
viii. Bid Withdrawal
51. The Bureau seeks comment on the following bid withdrawal
procedures for Auction 95. When permitted in an auction, bid
withdrawals provide a bidder with the option of withdrawing bids placed
in prior rounds that have become provisionally winning bids. A bidder
may withdraw its provisionally winning bids using the withdraw bids
function in the FCC Auction System. A bidder that withdraws its
provisionally winning bid(s), if permitted, is subject to the bid
withdrawal payment provisions of the Commission rules.
52. The Bureau has discretion in managing the auction to limit the
number of withdrawals to prevent any bidding abuses. The Commission has
stated that the Bureau should exercise its discretion, consider
limiting the number of rounds in which bidders may withdraw bids, and
prevent bidders from bidding on a particular market if the Bureau finds
that a bidder is abusing the Commission's bid withdrawal procedures.
53. For Auction 95, the Bureau proposes to limit each bidder to
withdrawing provisionally winning bids in only one round during the
course of the auction. To permit a bidder to withdraw bids in more than
one round may encourage insincere bidding or the
[[Page 11185]]
use of withdrawals for anti-competitive purposes. The round in which
withdrawals may be used will be at the bidder's discretion, and there
is no limit on the number of provisionally winning bids that may be
withdrawn during that round. Withdrawals must be in accordance with the
Commission's rules, including the bid withdrawal payment provisions
specified in 47 CFR 1.2104(g). The Bureau seeks comment on these bid
withdrawal procedures. If commenters believe that each bidder should be
allowed to withdraw provisionally winning bids in more than one round
during the course of the auction, they should state how many bid
withdrawal rounds they seek and explain what specific factors lead them
to that conclusion. If commenters believe that bidders in this auction
should not be permitted to withdraw any bids, they should discuss their
reasoning for this suggestion.
C. Post-Auction Payments
i. Interim Withdrawal Payment Percentage
54. The Bureau seeks comment on the appropriate percentage of a
withdrawn bid that should be assessed as an interim withdrawal payment
in the event that a final withdrawal payment cannot be determined at
the close of the auction. In general, the Commission's rules provide
that a bidder that withdraws a bid during an auction is subject to a
withdrawal payment equal to the difference between the amount of the
withdrawn bid and the amount of the winning bid in the same or
subsequent auction(s). If a bid is withdrawn and no subsequent higher
bid is placed and/or the license is not won in the same auction, the
final withdrawal payment cannot be calculated until after the close of
a subsequent auction in which a higher bid for the license (or the
equivalent to the license) is placed or the license is won. When that
final payment cannot yet be calculated, the bidder responsible for the
withdrawn bid is assessed an interim bid withdrawal payment, which will
be applied toward any final bid withdrawal payment that is ultimately
assessed. 47 CFR 1.2104(g)(1) requires that the percentage of the
withdrawn bid to be assessed as an interim bid withdrawal payment be
between three percent and twenty percent and that it be set in advance
of the auction.
55. The Commission has determined that the level of the interim
withdrawal payment in a particular auction will be based on the nature
of the service and the inventory of the licenses being offered. The
Commission has noted that it may impose a higher interim withdrawal
payment percentage to deter the anti-competitive use of withdrawals
when, for example, bidders likely will not need to aggregate the
licenses being offered in the auction, such as when few licenses are
offered that are on adjacent frequencies or in adjacent areas, or when
there are few synergies to be captured by combining licenses. With
respect to the licenses being offered in Auction 95, the service rules
permit a variety of fixed, mobile, and paging services, though the
opportunities for combining licenses on adjacent frequencies or in
adjacent areas are more limited than has been the case in previous
auctions of paging licenses. Balancing the potential need for bidders
to use withdrawals to avoid winning incomplete combinations of licenses
with the Bureau's interest in deterring undesirable strategic use of
withdrawals, the Bureau proposes a percentage below the maximum twenty
percent permitted under the current rules but above the three percent
previously provided by the Commission's rules. Specifically, the Bureau
proposes to establish an interim bid withdrawal payment of ten percent
of the withdrawn bid for this auction. The Bureau seeks comment on this
proposal.
ii. Additional Default Payment Percentage
56. Any winning bidder that defaults or is disqualified after the
close of an 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 and timely final payment, or is
otherwise disqualified) is liable for a default payment under 47 CFR
1.2104(g)(2). This payment consists of a deficiency payment, equal to
the difference between the amount of the Auction 95 bidder's winning
bid and the amount of the winning bid the next time a license 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.
57. The Commission's rules provide that, in advance of each
auction, it will establish a percentage between three percent and
twenty percent of the applicable bid to be assessed as an additional
default payment. As the Commission has indicated, the level of this
additional payment in each auction will be based on the nature of the
service and the licenses being offered.
58. For Auction 95, the Bureau proposes to establish an additional
default payment of ten percent. Defaults weaken the integrity of the
auction process and may impede the deployment of service to the public,
and an additional ten percent default payment will be more effective in
deterring defaults than the three percent used in some earlier
auctions. At the same time, the Bureau does not believe the detrimental
effects of any defaults in Auction 95 are likely to be unusually great.
The Bureau seeks comment on this proposal.
V. Ex Parte Rules
59. This proceeding has been designated as a permit-but-disclose
proceeding in accordance with the Commission's ex parte rules. Persons
making oral ex parte presentations are reminded that memoranda
summarizing the presentations must contain summaries of the substance
of the presentations and not merely a listing of the subjects
discussed. More than a one or two sentence description of the views and
arguments presented is generally required. Other provisions pertaining
to oral and written ex parte presentations in permit-but-disclose
proceedings are set forth in 47 CFR 1.1206(b).
Federal Communications Commission.
Gary D. Michaels,
Deputy Chief, Auctions and Spectrum Access Division, WTB.
[FR Doc. 2013-03493 Filed 2-14-13; 8:45 am]
BILLING CODE 6712-01-P