Auction of Lower and Upper Paging Band Licenses Scheduled for July 16, 2013; Notice of Filing Requirements, Minimum Opening Bids, Upfront Payments, and Other Procedures for Auction 95, 24404-24420 [2013-09802]

Agencies

• FEDERAL COMMUNICATIONS COMMISSION

[Federal Register Volume 78, Number 80 (Thursday, April 25, 2013)]
[Notices]
[Pages 24404-24420]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-09802]


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FEDERAL COMMUNICATIONS COMMISSION

[AU Docket No. 13-12; DA 13-535]


Auction of Lower and Upper Paging Band Licenses Scheduled for 
July 16, 2013; Notice of Filing Requirements, Minimum Opening Bids, 
Upfront Payments, and Other Procedures for Auction 95

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 licenses in the lower and upper paging 
bands (Auction 95). This document is intended to familiarize 
prospective applicants with the procedures and other requirements for 
participation in the auction.

DATES: Applications to participate in Auction 95 must be filed prior to 
6:00 p.m. Eastern Time (ET) on April 30, 2013. Bidding for construction 
permits in Auction 95 is scheduled to begin on July 16, 2013.

FOR FURTHER INFORMATION CONTACT: Wireless Telecommunications Bureau, 
Auctions and Spectrum Access Division: For legal and general auction 
questions: Howard Davenport (attorney) at (202) 418-0660; Mobility 
Division: For licensing and service rule questions: Kathy Harris 
(attorney) or Keith Harper (engineer) at (202) 418-0620. To request 
materials in accessible formats (Braille, large print, electronic 
files, or audio format) for people with disabilities, send an email 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 95 
Procedures Public Notice released on March 29, 2013. The complete text 
of the Auction 95 Procedures 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 Procedures 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 13-535. The Auction 95 Procedures 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. General Information

A. Introduction

    1. On February 1, 2013, the Wireless Telecommunication Bureau 
(Bureau) released a public notice seeking comment on competitive 
bidding procedures to be used in Auction 95. No comments were submitted 
in response to the Auction 95 Comment Public Notice 78 FR 11179, 
February 15, 2013.
    2. On March 29, 2013, the Bureau released a Public Notice that 
established the procedures and minimum opening bid amounts for the 
upcoming auction of 5,905 licenses for lower and upper

[[Page 24405]]

paging bands spectrum. This auction, which is designated as Auction 95, 
is scheduled to start on July 16, 2013. This summary provides an 
overview of the procedures, terms and conditions governing Auction 95 
and the post-auction application and payment processes.
    3. Auction 95 will offer 5,905 licenses consisting 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). Auction 95 will include 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.
    4. Attachment A to the Auction 95 Procedures 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/. The ``Attachment A'' files reflect 
corrections made to the market name provided for 43 of the licenses 
listed as available in this auction in the Auction 95 Comment Public 
Notice. Those licenses for which the market name has been corrected are 
noted by a single ``*.'' The market and license numbers for these 
licenses are unchanged.

B. License Descriptions

    5. In the Paging Reconsideration Order, 64 FR 33762, June 24, 1999, 
the Commission concluded that the licenses in the lower paging bands 
should be awarded in each of the 175 geographic areas known as Economic 
Areas (EAs), and the licenses in the upper paging bands 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.
    6. Tables containing the block/frequency cross-reference list for 
the paging bands are included in Attachment B to the Auction 95 
Procedures Public Notice.

C. Rules and Disclaimers

i. Relevant Authority
    7. Prospective applicants must familiarize themselves thoroughly 
with the Commission's general competitive bidding rules, including 
Commission decisions in proceedings regarding competitive bidding 
procedures, application requirements, and obligations of Commission 
licensees. Prospective bidders should also familiarize themselves with 
the Commission's rules relating to the lower and upper paging bands, 
and rules relating to applications, environment, practice and 
procedure. All bidders must also be thoroughly familiar with the 
procedures, terms and conditions contained in the Auction 95 Procedures 
Public Notice and any future public notices that may be issued in this 
proceeding.
    8. 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 the Bureaus public notices at 
any time, and will issue public notices to convey any new or 
supplemental information to applicants. It is the responsibility of all 
applicants to remain current with all Commission rules and with all 
public notices pertaining to this auction. Copies of most auctions-
related Commission documents, including public notices, can be 
retrieved from the FCC Auctions Internet site at https://wireless.fcc.gov/auctions.
ii. Prohibited Communications and Compliance With Antitrust Laws
    9. To ensure the competitiveness of the auction process, 47 CFR 
1.2105(c) prohibits auction applicants for licenses in any of the same 
or overlapping 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
    10. 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 licenses in the same or 
overlapping 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 or overlapping 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.
    11. 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 Bureau has found that the bids and bidding 
strategies of one applicant are conveyed to the other applicant, and, 
absent a disclosed bidding agreement, an apparent violation of 47 CFR 
1.2105(c) occurs.
    12. Information concerning applicants' license selections will not 
be available to the public. Therefore, the Commission will inform each 
applicant by letter of the identity of each of the other applicants 
that has applied for licenses covering any of the same or overlapping 
geographic areas as the licenses that it has selected in its short-form 
application.
    13. Individuals and entities subject to 47 CFR 1.2105(c) should 
take special care in circumstances where their employees may receive 
information directly or indirectly relating to any competing 
applicant's bids or bidding strategies. The Bureau has not addressed a 
situation 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 should be presumed to be 
communicated to the applicant.
    14. 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.
    15. Auction 95 applicants selecting licenses for any of the same or 
overlapping geographic license areas are encouraged not to use the same

[[Page 24406]]

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. 
Similarly, if the authorized bidders are different individuals employed 
by the same organization (e.g., law firm, 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 the applicant and its bidders will comply 
with 47 CFR 1.2105(c).
b. Prohibition Applies Until Down Payment Deadline
    16. 47 CFR 1.2105(c)'s prohibition on certain communications begins 
at the short-form application filing deadline and ends at the down 
payment deadline after the auction closes, which will be announced in a 
future public notice.
c. Prohibited Communications
    17. Applicants must not communicate directly or indirectly about 
bids or bidding strategy to other applicants in this auction. 47 CFR 
1.2105(c) prohibits not only communication about an applicant's own 
bids or bidding strategy, it also prohibits 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, each applicant must remain vigilant so as not to directly 
or indirectly communicate information that affects, or could affect, 
bids, bidding strategy, or the negotiation of settlement agreements.
    18. Applicants are cautioned that the Commission remains vigilant 
about prohibited communications taking place in other situations. For 
example, the Commission has warned that prohibited ``communications 
concerning bids and bidding strategies may include communications 
regarding capital calls or requests for additional funds in support of 
bids or bidding strategies to the extent such communications convey 
information concerning the bids and bidding strategies directly or 
indirectly.'' Moreover, the Commission has found a violation of 47 CFR 
1.2105(c) where an applicant used the Commission's bidding system to 
disclose ``its bidding strategy in a manner that explicitly invited 
other auction participants to cooperate and collaborate in specific 
markets,'' and has placed auction participants on notice that the use 
of its bidding system ``to disclose market information to competitors 
will not be tolerated and will subject bidders to sanctions.'' 
Applicants also should use caution in their dealings with other 
parties, such as members of the press, financial analysts, or others 
who might become conduits for the communication of prohibited bidding 
information. For example, where limited information disclosure 
procedures are in place, as in the case for Auction 95, an applicant's 
statement to the press that it has lost bidding eligibility and intends 
to stop bidding in the auction could give rise to a finding of a 47 CFR 
1.2105(c) violation. Similarly, an applicant's public statement of 
intent not to participate in Auction 95 bidding could also violate the 
rule.
    19. Applicants are also hereby placed on notice that public 
disclosure of information relating to bidder interests and bidder 
identities that has not yet been made public by the Commission at the 
time of disclosure may violate the provisions of 47 CFR 1.2105(c) that 
prohibit certain communications. This is so even though similar types 
of information were revealed prior to and during other Commission 
auctions subject to different information procedures.
    20. In addition, when completing short-form applications, 
applicants should avoid any statements or disclosures that may violate 
47 CFR 1.2105(c), particularly in light of the limited information 
procedures in effect for Auction 95. Specifically, applicants should 
avoid including any information in their short-form applications that 
might convey information regarding their license selection, such as 
using applicant names that refer to licenses being offered, referring 
to certain licenses or markets in describing bidding agreements, or 
including any information in attachments that may otherwise disclose 
applicants' license selections.
d. Disclosure of Bidding Agreements and Arrangements
    21. 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. Applicants must identify 
in their short-form applications all parties with whom they have 
entered into any agreements, arrangements, or understandings of any 
kind relating to the licenses being auctioned, including any agreements 
relating to post-auction market structure.
    22. 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 
negotiation, discussion or communication with any other applicants 
after the short-form application filing deadline.
    23. 47 CFR 1.2105(c) does not prohibit non-auction-related business 
negotiations among auction applicants. However, 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, and other transactional agreements.
e. Section 1.2105(c) Certification
    24. By electronically submitting a short-form application, each 
applicant in Auction 95 certifies its compliance with 47 CFR 1.2105(c). 
In particular, an applicant must certify under penalty of perjury it 
has 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 the applicant's bids, bidding strategies, or the particular 
licenses on which it will or will not bid. However, the Bureau cautions 
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
    25. 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

[[Page 24407]]

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.
    26. 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).
    27. 47 CFR 1.65(a) and 1.2105(c) require each applicant in 
competitive bidding proceedings to furnish additional or corrected 
information 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. These rules are intended to 
facilitate the auction process by making the information available 
promptly to all participants and to enable the Bureau to act 
expeditiously on those changes when such action is necessary.
g. Procedure for Reporting Prohibited Communications
    28. 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 report 
of a prohibited communication does not itself 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.
    29. 47 CFR 1.2105(c) requires parties to file only a single report 
concerning a prohibited communication and to file that report with 
Commission personnel expressly charged with administering the 
Commission's auctions. This rule is designed to minimize the risk of 
inadvertent dissemination of information in such reports. Any reports 
required by 47 CFR 1.2105(c) must be filed consistent with the 
instructions set forth in the Auction 95 Procedures Public Notice. For 
Auction 95, such reports must be filed with the Chief of the Auctions 
and Spectrum Access Division, Wireless Telecommunications Bureau, by 
the most expeditious means available. Any such report should be 
submitted by email to Ms. Wiener at the following email address: 
auction95@fcc.gov. If you choose instead to submit a report in hard 
copy, any such report must be delivered only to: Margaret W. Wiener, 
Chief, Auctions and Spectrum Access Division, Wireless 
Telecommunications Bureau, Federal Communications Commission, 445 12th 
Street, SW., Room 6423, Washington, DC 20554.
    30. A party seeking to report such a prohibited communication 
should consider submitting its report with a request that the report or 
portions of the submission be withheld from public inspection by 
following the procedures specified in 47 CFR 0.459. Such parties also 
are encouraged to coordinate with the Auctions and Spectrum Access 
Division staff about the procedures for submitting such reports. The 
Auction 95 Procedures Public Notice provides additional guidance on 
procedures for submitting application-related information.
h. Winning Bidders Must Disclose Terms of Agreements
    31. Each applicant that is a winning bidder will be required to 
disclose in its long-form applications the specific terms, conditions, 
and parties involved in any agreement it has entered into. This applies 
to any bidding consortia, joint venture, partnership, or agreement, 
understanding, or other arrangement entered into relating to the 
competitive bidding process, including any agreement relating to the 
post-auction market structure. Failure to comply with the Commission's 
rules can result in enforcement action.
i. Additional Information Concerning Rule Prohibiting Certain 
Communications
    32. A summary listing of documents issued by the Commission and the 
Bureau addressing the application of 47 CFR 1.2105(c) may be found in 
Attachment E of the Auction 95 Procedures Public Notice. These 
documents are available on the Commission's auction Web page at https://wireless.fcc.gov/auctions/prohibited_communications.
j. Antitrust Laws
    33. Regardless of compliance with the Commission's rules, 
applicants 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. The Commission has 
cited a number of examples of potentially anticompetitive actions that 
would be prohibited under antitrust laws: For example, actual or 
potential competitors may not agree to divide territories in order to 
minimize competition, regardless of whether they split a market in 
which they both do business, or whether they merely reserve one market 
for one and another market for the other. Similarly, the Bureau 
previously reminded potential applicants and others that even where the 
applicant discloses parties with whom it has reached an agreement on 
the short-form application, thereby permitting discussions with those 
parties, the applicant is nevertheless subject to existing antitrust 
laws.
    34. To the extent the Commission becomes aware of specific 
allegations that suggest that violations of the federal antitrust laws 
may have occurred, the Commission may refer such allegations to the 
United States Department of Justice for investigation. If an applicant 
is found to have violated the antitrust laws or the Commission's rules 
in connection with its participation in the competitive bidding 
process, it may be subject to forfeiture of its upfront payment, down 
payment, or full bid amount and may be prohibited from participating in 
future auctions, among other sanctions.
iii. Incumbency Issues
    35. There are pre-existing paging incumbent licenses, including 
public safety entities licensed under either 47 U.S.C. 337 or 47 CFR 
1.925. 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.

[[Page 24408]]

a. International Coordination
    36. Potential bidders seeking licenses for geographic areas 
adjacent to the Canadian and Mexican border should be aware that the 
use of some or all of the channels they acquire in the auction could be 
restricted as a result of current or future agreements with Canada or 
Mexico. Licensees on the lower paging channels must submit a FCC Form 
601 to obtain authorization to operate stations north of Line A or east 
of Line C because these channels are subject to the Above 30 Megacycles 
per Second Agreement with Industry Canada. Although the upper paging 
channels do not require coordination with Canada, the U.S.-Canada 
Interim Coordination Considerations for the Band 929-932 MHz, as 
amended, assigns specific 929 MHz and 931 MHz frequencies to the United 
States for licensing along certain longitudes above Line A, and assigns 
other specific 929 MHz and 931 MHz frequencies to Canada for licensing 
along certain longitudes along the U.S.-Canada border. In addition, the 
929 MHz and 931 MHz frequencies assigned to Canada are unavailable for 
use by U.S. licensees above Line A as set out in the agreement.
b. Quiet Zones
    37. Paging licensees must individually apply for and receive a 
separate license for each transmitter if the proposed operation would 
affect the radio quiet zones set forth in the Commission's rules.
iv. Due Diligence
    38. Potential bidders are reminded that there are a number of 
incumbent licensees already licensed and operating on frequencies that 
will be subject to the upcoming auction. Geographic area licensees in 
accordance with the Commission's rules must protect such incumbents 
from harmful interference. These limitations may restrict the ability 
of such geographic area licensees to use certain portions of the 
electromagnetic spectrum or provide service to certain areas in their 
geographic license areas.
    39. The Bureau caution potential applicants formulating their 
bidding strategies to investigate and consider the extent to which 
these frequencies are occupied. For example there are incumbent 
operations already licensed and operating in the bands that must be 
protected. These limitations may restrict the ability of paging 
licensees to use certain portions of the electromagnetic spectrum or 
provide service to certain areas in their geographic license areas. 
Bidders should become familiar with the status of these operations and 
applicable Commission rules, orders and any pending proceedings related 
to the service, in order to make reasoned, appropriate decisions about 
their participation in this auction and their bidding strategy.
    40. The Bureau reminds each potential bidder that it is solely 
responsible for investigating and evaluating all technical and 
marketplace factors that may have a bearing on the value of the 
licenses they are 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. Applicants should be aware that an FCC auction 
represents an opportunity to become an FCC licensee 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.
    41. An applicant should perform its due diligence research and 
analysis before proceeding, as it would with any new business venture. 
In particular, the Bureau strongly encourages each potential bidder to 
review all Commission orders establishing rules and policies for the 
lower and upper paging bands. Additionally, each potential bidder 
should perform technical analyses or refresh their 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 service area for which it 
plans to bid, confirm the availability of such sites, and to 
familiarize itself with the Commission's rules regarding the National 
Environmental Policy Act.
    42. The Bureau strongly encourages each applicant to conduct its 
own research prior to Auction 95 in order to determine the existence of 
pending administrative or judicial proceedings, including pending 
allocation rulemaking proceedings that might affect its decision to 
participate in the auction. The Bureau strongly encourages each 
participant in Auction 95 to continue such research throughout the 
auction. The due diligence considerations mentioned in the Auction 95 
Procedures Public Notice do 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 specific facts and circumstances 
related to its interests.
    43. The Bureau also reminds each applicant that pending and future 
judicial proceedings, as well as pending and future proceedings before 
the Commission--including applications, applications for modification, 
petitions for rulemaking, requests for special temporary authority, 
waiver requests, petitions to deny, petitions for reconsideration, 
informal objections, and applications for review--may relate to 
particular applicants, incumbent licensees, or the licenses available 
in Auction 95. Each prospective applicant is responsible for assessing 
the likelihood of the various possible outcomes and for considering the 
potential impact on licenses available in this auction.
    44. 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 licenses available in Auction 95. Each potential bidder is 
responsible for undertaking research to ensure that any licenses won in 
this auction will be suitable for its business plans and needs. Each 
potential bidder must undertake its own assessment of the relevance and 
importance of information gathered as part of its due diligence 
efforts.
    45. Applicants may research the Bureau's licensing database in 
order to determine which frequencies are already licensed to incumbent 
licensees. Applicants may obtain information about licenses available 
in Auction 95 through the Bureau's online licensing databases at https://wireless.fcc.gov/uls.
    46. The Commission makes no representations or guarantees regarding 
the accuracy or completeness of information in its databases or any 
third party databases, including, for example, court docketing systems. 
To the extent the Commission's databases may not include all 
information deemed necessary or desirable by an applicant, it must 
obtain or verify such information from independent sources or assume 
the risk of any incompleteness or inaccuracy in said databases. 
Furthermore, the Commission makes no representations or guarantees 
regarding the accuracy or completeness of information that has been 
provided by incumbent licensees and incorporated into its databases.

[[Page 24409]]

v. Use of Integrated Spectrum Auction System
    47. Bidders will be able to participate in Auction 95 over the 
Internet using the Commission's web-based 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.
vi. Environmental Review Requirements
    48. Licensees must comply with the Commission's rules regarding 
implementation of the National Environmental Policy Act and other 
federal environmental statutes. The construction of a wireless antenna 
facility is a federal action, and the licensee must comply with the 
Commission's environmental rules for each such facility. These 
environmental rules require, among other things, that the licensee 
consult with expert agencies having environmental responsibilities, 
including the U.S. Fish and Wildlife Service, the State Historic 
Preservation Office, the U.S. Army Corps of Engineers, and the Federal 
Emergency Management Agency (through the local authority with 
jurisdiction over floodplains). In assessing the effect of facility 
construction on historic properties, the licensee must follow the 
provisions of the FCC's Nationwide Programmatic Agreement Regarding the 
Section 106 National Historic Preservation Act Review Process. The 
licensee must prepare environmental assessments for any facility that 
may have a significant impact in or on wilderness areas, wildlife 
preserves, threatened or endangered species, or designated critical 
habitats, historical or archaeological sites, Indian religious sites, 
floodplains, and surface features. In addition, the licensee must 
prepare environmental assessments for facilities that include high 
intensity white lights in residential neighborhoods or excessive radio 
frequency emission.
vii. Bidding Methodology
    49. The bidding methodology for Auction 95 will be a simultaneous 
multiple round format. The Commission will conduct this auction over 
the Internet using the FCC Auction System. Qualified bidders are 
permitted to bid electronically via the Internet or by telephone using 
the telephonic bidding option. All telephone calls are recorded.
viii. Pre-Auction Dates and Deadlines
    50. The following dates and deadlines apply:

 
Auction Tutorial Available (via Internet).......  by April 30, 2013.
Short-Form Application (FCC Form 175) Filing      April 30, 2013; 12:00 noon ET.
 Window Opens.
Short-Form Application (FCC Form 175) Filing      May 9, 2013; prior to 6:00 p.m. ET.
 Window Deadline.
Upfront Payments (via wire transfer)............  June 13, 2013; 6:00 p.m. ET.
Mock Auction....................................  July 12, 2013.
Auction Begins..................................  July 16, 2013.
----------------------------------------------------------------------------------------------------------------

ix. Requirements for Participation
    51. Those wishing to participate in this auction must: (1) Submit a 
short-form application (FCC Form 175) electronically prior to 6:00 p.m. 
ET, on May 9, 2013, following the electronic filing procedures set 
forth in Attachment C to the Auction 95 Procedures Public Notice; (2) 
Submit a sufficient upfront payment and an FCC Remittance Advice Form 
(FCC Form 159) by 6:00 p.m. ET, on June 13, 2013, following the 
procedures and instructions set forth in Attachment D to the Auction 95 
Procedures Public Notice; and (3) Comply with all provisions outlined 
in the Auction 95 Procedures Public Notice and applicable Commission 
rules.

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

A. General Information Regarding Short-Form Applications

    52. An application to participate in an FCC auction, referred to as 
a short-form application or FCC Form 175, provides information used to 
determine 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, parties desiring to participate in the auction must file a 
streamlined, short-form application in which they certify under penalty 
of perjury as to their qualifications. Eligibility to participate in 
bidding is based on the applicant's short-form application and 
certifications, and on its upfront payment, as explained below. In the 
second phase of the process, each winning bidder must file a more 
comprehensive long-form application (FCC Form 601) and have a complete 
and accurate ownership disclosure information report (FCC Form 602) on 
file with the Commission.
    53. Every entity and individual seeking a license available in 
Auction 95 must file a short-form application electronically via the 
FCC Auction System prior to 6:00 p.m. ET on May 9, 2013, following the 
procedures prescribed in Attachment C to the Auction 95 Procedures 
Public Notice. If an applicant claims eligibility for a bidding credit, 
the information provided in its FCC Form 175 will be used to determine 
whether the applicant is eligible for the claimed bidding credit. 
Applicants filing a short-form application are subject to the 
Commission's anti-collusion rules beginning at the deadline for filing.
    54. 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 carefully the instructions set 
forth in Attachment C to the Auction 95 Procedures Public Notice and 
should consult the Commission's rules to ensure that, in addition to 
the materials all the information required is included within their 
short-form application.
    55. An individual or entity may not submit more than one short-form 
application for a single auction. If a party submits multiple short-
form

[[Page 24410]]

applications, only one application may be accepted for filing.
    56. Applicants 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. License Selection

    57. An applicant must select the licenses on which it wants to bid 
from the ``Eligible Licenses'' list on its short-form application. To 
assist in identifying licenses of interest that will be available in 
Auction 95, the FCC Auction System includes a filtering mechanism that 
allows an applicant to filter the ``Eligible Licenses'' list. 
Selections for one or more of the filter criteria can be made and the 
system will produce a list of licenses satisfying the specified 
criteria. Any or all of the licenses in the filtered results may be 
selected. Applicants will also be able to select licenses from one set 
of filtered results and then filter on different criteria to select 
additional licenses.
    58. Applicants interested in participating in Auction 95 must have 
selected license(s) available in this auction by the short-form 
application filing deadline. Applicants must review and verify their 
license selections before the deadline for submitting short-form 
applications. License selections cannot be changed after the short-form 
application filing deadline. The FCC Auction System will not accept 
bids on licenses that were not selected on the applicant's short-form 
application.

C. Disclosure of Bidding Arrangements

    59. An applicant will be required to identify in its short-form 
application all real parties in interest with whom it has entered into 
any agreements, arrangements, or understandings of any kind relating to 
the licenses being auctioned, including any agreements relating to 
post-auction market structure.
    60. Each applicant will also be required to certify under penalty 
of perjury in its short-form application that it has 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 its bids, 
bidding strategies, or the particular licenses on which it 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.
    61. After the filing of short-form applications, the Commission's 
rules do not prohibit a party holding a non-controlling, attributable 
interest in one applicant from acquiring an ownership interest in or 
entering into a joint bidding arrangement with other applicants, 
provided that: (1) The attributable interest holder certifies that it 
has not and will not communicate with any party concerning the bids or 
bidding strategies of more than one of the applicants in which it holds 
an attributable interest, or with which it has entered into a joint 
bidding arrangement; and (2) the arrangements do not result in a change 
in control of any of the applicants. While 47 CFR 1.2105(c) does not 
prohibit non-auction-related business negotiations among auction 
applicants, the Bureau reminds applicants that certain discussions or 
exchanges could touch upon impermissible subject matters because they 
may convey pricing information and bidding strategies. Compliance with 
the disclosure requirements of 47 CFR 1.2105(c) will not insulate a 
party from enforcement of the antitrust laws.

D. Ownership Disclosure Requirements

    62. Each applicant 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, an 
applicant will be required to fully disclose information on the real 
party- or parties-in-interest and the ownership structure of the 
applicant, including both direct and indirect ownership interests of 10 
percent or more, as prescribed in 47 CFR 1.2105 and 1.2112. Each 
applicant is responsible for ensuring that information submitted in its 
short-form application is complete and accurate.
    63. 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 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. Each applicant must carefully 
review any information automatically entered to confirm that it is 
complete and accurate as of the deadline for filing the short-form 
application. Any information that needs to be corrected or updated must 
be changed directly in the short-form application.

E. Designated Entity Provisions

    64. Eligible applicants in Auction 95 may claim small business 
bidding credits. In addition to the information provided applicants 
should review carefully the Commission's decisions regarding the 
designated entity provisions.
i. Bidding Credits for Small Businesses
    65. A bidding credit represents an amount by which a bidder's 
winning bid will be discounted. For Auction 95, bidding credits will be 
available to small businesses and consortia thereof.
a. Bidding Credit Eligibility Criteria
    66. In the Paging Second Report and Order, 62 FR 11616, March 12, 
1997, the Commission adopted small business bidding credits to promote 
and facilitate the participation of small businesses in competitive 
bidding for licenses in the paging service. In the Paging 
Reconsideration Order, the Commission subsequently increased the size 
of the bidding credits.
    67. The level of bidding credit is determined as follows: (1) A 
bidder with attributed average annual gross revenues that do not exceed 
$15 million for the preceding three years will receive a 25 percent 
discount on its winning bid; (2) A bidder with attributed average 
annual gross revenues that do not exceed $3 million for the preceding 
three years will receive a 35 percent discount on its winning bid and; 
(3) Bidding credits are not cumulative; qualifying applicants receive 
either the 25 percent or the 35 percent bidding credit on its winning 
bid, but not both. 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 to an 
entity not qualifying for the same level of bidding credit.
b. Revenue Disclosure on Short-Form Application
    68. An entity applying as a small business must provide gross 
revenues for the preceding three years of each of the following: (1) 
The applicant, (2) its

[[Page 24411]]

affiliates, (3) its controlling interests, (4) the affiliates of its 
controlling interests, and (5) the entities with which it has an 
attributable material relationship. Certification that the average 
annual gross revenues of such entities and individuals for the 
preceding three years do not exceed the applicable limit is not 
sufficient. Additionally, if an applicant is applying as a consortium 
of small businesses, this information must be provided for each 
consortium member.
ii. Attributable Interests
a. Controlling Interests
    69. Controlling interests of an applicant include individuals and 
entities with either de facto or de jure control of the applicant. 
Typically, ownership of greater than 50 percent of an entity's voting 
stock evidences de jure control. De facto control is determined on a 
case-by-case basis. The following are some common indicia of de facto 
control: (1) The entity constitutes or appoints more than 50 percent of 
the board of directors or management committee; (2) the entity has 
authority to appoint, promote, demote, and fire senior executives that 
control the day-to-day activities of the licensee and; (3) the entity 
plays an integral role in management decisions.
    70. Applicants should refer to 47 CFR 1.2110(c)(2) of the 
Commission's rules and Attachment C of the Auction 95 Procedures Public 
Notice to understand how certain interests are calculated in 
determining control. For example, pursuant to 47 CFR 
1.2110(c)(2)(ii)(F), officers and directors of an applicant are 
considered to have controlling interest in the applicant.
b. Affiliates
    71. Affiliates of an applicant or controlling interest include an 
individual or entity that: (1) Directly or indirectly controls or has 
the power to control the applicant; (2) is directly or indirectly 
controlled by the applicant; (3) is directly or indirectly controlled 
by a third party that also controls or has the power to control the 
applicant; or (4) has an ``identity of interest'' with the applicant. 
The Commission's definition of an affiliate of the applicant 
encompasses both controlling interests of the applicant and affiliates 
of controlling interests of the applicant. For more information 
regarding affiliates, applicants should refer to 47 CFR 1.2110(c)(5) 
and Attachment C to the Auction 95 Procedures Public Notice.
c. Material Relationships
    72. The Commission requires the consideration of certain leasing 
and resale (including wholesale) relationships--referred to as 
``attributable material relationships''--in determining designated 
entity eligibility for bidding credits. An applicant or licensee has an 
``attributable material relationship'' when it has one or more 
agreements with any individual entity for the lease or resale 
(including under a wholesale agreement) of, on a cumulative basis, more 
than 25 percent of the spectrum capacity of any individual license held 
by the applicant or licensee. The attributable material relationship 
will cause the gross revenues of that entity and its attributable 
interest holders to be attributed to the applicant or licensee for the 
purposes of determining the applicant's or licensee's (1) eligibility 
for designated entity benefits and (2) liability for ``unjust 
enrichment'' on a license-by-license basis.
    73. The Commission grandfathered material relationships in 
existence before the release of the Designated Entity Second Report and 
Order, meaning that those preexisting relationships alone would not 
cause the Commission to examine a designated entity's ongoing 
eligibility for existing benefits or its liability for unjust 
enrichment. The Commission did not, however, grandfather preexisting 
material relationships for determinations of an applicant's or 
licensee's designated entity eligibility for future auctions or in the 
context of future assignments, transfers of control, spectrum leases, 
or other reportable eligibility events. Rather, in such circumstances, 
the Commission reexamines the applicant's or licensee's designated 
entity eligibility, taking into account all existing material 
relationships, including those previously grandfathered.
d. Gross Revenue Exceptions
    74. The Commission has also made other modifications to its rules 
governing the attribution of gross revenues for purposes of determining 
designated entity eligibility. For example, the Commission has 
clarified that, in calculating an applicant's gross revenues under the 
controlling interest standard, it will not attribute to the applicant 
the personal net worth, including personal income, of its officers and 
directors.
    75. The Commission has also exempted from attribution to the 
applicant the gross revenues of the affiliates of a rural telephone 
cooperative's officers and directors, if certain conditions specified 
in 47 CFR 1.2110(b)(3)(iii) are met. An applicant claiming this 
exemption must provide, in an attachment, an affirmative statement that 
the applicant, affiliate and/or controlling interest is an eligible 
rural telephone cooperative within the meaning of 47 CFR 
1.2110(b)(3)(iii), and the applicant must supply any additional 
information as may be required to demonstrate eligibility for the 
exemption from the attribution rule. Applicants seeking to claim this 
exemption must meet all of the conditions. Additional guidance on 
claiming this exemption may be found in Attachment C to the Auction 95 
Procedures Public Notice.
e. Bidding Consortia
    76. A consortium of small businesses is a conglomerate organization 
composed of two or more entities, each of which individually satisfies 
the definition of a small business. Thus, each member of a consortium 
of small businesses that applies to participate in Auction 95 must 
individually meet the criteria for small businesses. Each consortium 
member must disclose its gross revenues along with those of its 
affiliates, its controlling interests, the affiliates of its 
controlling interests, and any entities having an attributable material 
relationship with the member. Although the gross revenues of the 
consortium members will not be aggregated for purposes of determining 
the consortium's eligibility as a small business, this information must 
be provided to ensure that each individual consortium member qualifies 
for any bidding credit awarded to the consortium.

F. Tribal Lands Bidding Credit

    77. To encourage the growth of wireless services in federally 
recognized tribal lands, the Commission has implemented a tribal lands 
bidding credit. Applicants do not provide information regarding tribal 
lands bidding credits on their short-form applications. Instead, 
winning bidders may apply for the tribal lands bidding credit after the 
auction when they file their more detailed, long-form applications.

G. Provisions Regarding Former and Current Defaulters

    78. Current defaulters or delinquents are not eligible to 
participate in Auction 95, but former defaulters or delinquents can 
participate so long as they are otherwise qualified and make upfront 
payments that are fifty percent more than would otherwise be necessary. 
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

[[Page 24412]]

affiliates of its controlling interests, is in default on any payment 
for any Commission construction permit or license (including a down 
payment) or is 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.
    79. 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.
    80. Applicants are encouraged to review the Bureau's previous 
guidance on default and delinquency disclosure requirements in the 
context of the short-form application process. For example, it has been 
determined that, to the extent that Commission rules permit late 
payment of regulatory or application fees accompanied by late fees, 
such debts will become delinquent for purposes of 47 CFR 1.2105(a) and 
1.2106(a) only after the expiration of a final payment deadline. 
Therefore, with respect to regulatory or application fees, the 
provisions of 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 Wireless Telecommunications Bureau's Auctions and Spectrum 
Access Division staff if they have any questions about default and 
delinquency disclosure requirements.
    81. 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 its obligations under the Debt 
Collection Improvement Act of 1996, which governs the collection of 
debts owed to the United States. Under the red light rule, applications 
and other requests for benefits filed by parties that have outstanding 
debts owed to the Commission will not be processed. In the same 
rulemaking order, the Commission explicitly declared, however, that its 
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 its 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.
    82. 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.
    83. Moreover, prospective applicants in Auction 95 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

    84. 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

    85. After the deadline for filing initial applications, an Auction 
95 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 of license selection, 
change control of the applicant, change the certifying official, or 
claim eligibility for a higher percentage of bidding credit) after the 
initial application filing deadline. Thus, any change in control of an 
applicant resulting from a merger, for example will be considered a 
major modification, and the application will consequently be dismissed.
    86. 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. For the change to be submitted and considered by the 
Commission, be sure to click on the SUBMIT button. After the revised 
application has been submitted, a confirmation page will be displayed 
stating the submission time, submission date, and a unique file number.
    87. An applicant cannot use the FCC Auction System outside of the 
initial and resubmission filing windows to make changes to its short-
form application for other than administrative 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 the 
FCC Auction System once it is available. Moreover, after the filing 
window has closed, the system will not permit applicants to make 
certain changes, such as the applicant's legal classification and 
license selections.
    88. Any letter describing changes to an applicant's short-form 
application must be submitted by email to auction95@fcc.gov. The email 
summarizing the changes must include a subject or caption referring to 
Auction 95 and the name of the applicant, for example, ``Re: Changes to 
Auction 95 Short-Form Application of ABC Corp.'' The Bureau requests 
that parties format any attachments to email as Adobe[supreg]

[[Page 24413]]

Acrobat[supreg] (pdf) or Microsoft[supreg] Word documents. Questions 
about short-form application amendments should be directed to the 
Auctions and Spectrum Access Division at (202) 418-0660.
    89. 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.
    90. Applicants must not submit application-specific material 
through the Commission's Electronic Comment Filing System, which was 
used for submitting comments regarding Auction 95. Further, as 
discussed above, parties submitting information related to their 
applications should use caution to ensure that their submissions do not 
contain confidential information or communicate information that would 
violate 47 CFR 1.2105(c) or the limited information procedures adopted 
for Auction 95. A party seeking to submit information that might 
reflect non-public information, such as an applicant's license 
selections, upfront payment amount, or bidding eligibility, should 
consider submitting any such information along with a request that the 
filing or portions of the filing be withheld from public inspection 
until the end of the prohibition of certain communications pursuant to 
47 CFR 1.2105(c).

J. Maintaining Current Information in Short-Form Applications

    91. 47 CFR 1.65 and 1.2105(b) require an applicant to maintain the 
accuracy and completeness of information furnished in its pending 
application and in competitive bidding proceedings to furnish 
additional or corrected information to the Commission within five days 
of a significant occurrence, or to amend a short form application no 
more than five days after the applicant becomes aware of the need for 
the 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, and no later than five 
business days after the change occurs. If an amendment reporting 
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 short-form filing deadline, applicants may 
make only minor changes to their applications. For changes to be 
submitted and considered by the Commission, be sure to click on the 
SUBMIT button in the FCC Auction System. In addition, an applicant 
cannot update its short-form application using the FCC Auction System 
after the initial and resubmission filing windows close. If information 
needs to be submitted pursuant to 47 CFR 1.65 after these windows 
close, a letter briefly summarizing the changes must be submitted by 
email to auction95@fcc.gov. This email must include a subject or 
caption referring to Auction 95 and the name of the applicant. The 
Bureau requests that parties format any attachments to email as 
Adobe[supreg] Acrobat[supreg] (pdf) or Microsoft[supreg] Word 
documents. A party seeking to submit information that might reflect 
non-public information, such as an applicant's license selections, 
upfront payment amount, or bidding eligibility, should consider 
submitting any such information along with a request that the filing or 
portions of the filing be withheld from public inspection until the end 
of the prohibition of certain communications pursuant to 47 CFR 
1.2105(c).

III. Pre-Auction Procedures

A. Online Auction Tutorial--Available April 30, 2013

    92. No later than Tuesday, April 30, 2013, an auction tutorial will 
be available on the Auction 95 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 paging 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.
    93. The Auction 95 online tutorial replaces the live bidder 
seminars that have been offered for many previous auctions. The Bureau 
believes parties interested in participating in this auction will find 
the interactive, online tutorial a more efficient and effective way to 
further their understanding of the auction process. The tutorial will 
allow viewers to navigate the presentation outline, review written 
notes, listen to audio recordings of the notes, and search for topics 
using a text search function. Additional features of this web-based 
tool include links to auction-specific Commission releases, email links 
for contacting Commission licensing and auctions staff, a timeline with 
deadlines for auction preparation, and screen shots of the online 
application and bidding system. The tutorial will be accessible through 
a web browser with Adobe Flash Player.
    94. The auction tutorial will be accessible from the FCC's Auction 
95 Web page at https://wireless.fcc.gov/auctions/95/through an ``Auction 
Tutorial'' link. Once posted, this tutorial will remain available and 
accessible anytime for reference in connection with the procedures 
outlined in the Auction 95 Procedures Public Notice.

B. Short-Form Applications--Due Prior to 6:00 p.m. ET on May 9, 2013

    95. In order to be eligible to bid in this auction, applicants must 
first follow the procedures set forth in Attachment C to the Auction 95 
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 prior to 6:00 p.m. ET on May 9, 2013. 
Late applications will not be accepted. No application fee is required, 
but an applicant must submit a timely upfront payment to be eligible to 
bid.
    96. Applications may generally be filed at any time beginning at 
noon ET on April 30, 2013, until the filing window closes at 6:00 p.m. 
ET on May 9, 2013. Applicants are strongly encouraged to file early and 
are responsible for allowing adequate time for filing their 
applications. Applications can be updated or amended multiple times 
until the filing deadline on May 9, 2013.
    97. An applicant must always click on the SUBMIT button on the 
``Certify & Submit'' screen to successfully submit its FCC Form 175 and 
any modifications; otherwise the application or changes to the 
application will not be received or reviewed by Commission staff. 
Additional information about accessing, completing, and viewing the FCC 
Form 175 is included in Attachment C. FCC Auctions Technical Support is 
available at (877) 480-3201, option nine; (202) 414-1250; or (202) 414-
1255 (text telephone (TTY)); hours of service are Monday through 
Friday, from 8:00 a.m. to 6:00 p.m. ET. In order to provide better 
service to the public, all calls to Technical Support are recorded.

C. Application Processing and Minor Corrections

    98. After the deadline for filing FCC Form 175 applications, the 
Commission

[[Page 24414]]

will process all timely submitted applications to determine which are 
complete, and subsequently will issue a public notice identifying (1) 
those that are complete; (2) those that are rejected; and (3) those 
that are incomplete or deficient because of minor defects that may be 
corrected. The public notice will include the deadline for resubmitting 
corrected applications.
    99. After the application filing deadline on May 9, 2013, 
applicants can make only minor corrections to their applications. They 
will not be permitted to make major modifications (e.g., change license 
selection, change control of the applicant, change the certifying 
official, or claim eligibility for a higher percentage of bidding 
credit).
    100. Commission staff will communicate only with an applicant's 
contact person or certifying official, as designated on the 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 email to auction95@fcc.gov.

D. Upfront Payments--Due June 13, 2013

    101. In order to be eligible to bid in this auction, an upfront 
payment must be submitted and accompanied by an FCC Remittance Advice 
Form (FCC Form 159). 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 the 
Auction 95 Procedures Public Notice and must be received in the proper 
account at U.S. Bank before 6:00 p.m. ET on June 13, 2013.
i. Making Upfront Payments by Wire Transfer
    102. Wire transfer payments must be received before 6:00 p.m. ET on 
June 13, 2013. 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.
    103. 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, write ``Wire Transfer--Auction Payment for 
Auction 95.'' In order to meet the upfront payment deadline, an 
applicant's payment must be credited to the Commission's account for 
Auction 95 before the deadline.
    104. Each applicant is responsible for ensuring timely submission 
of its upfront payment and for timely filing of an accurate and 
complete FCC Remittance Advice Form (FCC Form 159). An applicant should 
coordinate with its financial institution well ahead of the due date 
regarding its wire transfer and allow sufficient time for the transfer 
to be initiated and completed prior to the deadline. The Commission 
repeatedly has cautioned auction participants about the importance of 
planning ahead to prepare for unforeseen last-minute difficulties in 
making payments by wire transfer. Each applicant also is responsible 
for obtaining confirmation from its financial institution that its wire 
transfer to U.S. Bank was successful and from Commission staff that its 
upfront payment was timely received and that it was deposited into the 
proper account.
    105. 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 95 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 June 13, 2013, deadline will result in 
dismissal of the short-form application and disqualification from 
participation in the auction.
ii. FCC Form 159
    106. An accurate and complete 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 this form is critical to ensuring correct 
crediting of upfront payments. Detailed instructions for completion of 
FCC Form 159 are included in Attachment D of the Auction 95 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 it must be filed with 
U.S. Bank by fax.
iii. Upfront Payments and Bidding Eligibility
    107. Applicants must make upfront payments sufficient to obtain 
bidding eligibility on the licenses on which they will bid. The Bureau 
proposed, in the Auction 95 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 Bureau's proposal, in order to bid on a 
particular license, a qualified bidder must have selected the license 
on its FCC Form 175 and must have a current eligibility level that 
meets or exceeds the number of bidding units assigned to that license. 
At a minimum, therefore, an applicant's total upfront payment must be 
enough to establish at least 500 bidding units of eligibility to bid on 
at least one of the licenses 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 
licenses the applicant selected on its FCC Form 175, but only enough to 
cover the maximum number of bidding units that are associated with 
licenses on which they wish to place bids and hold provisionally 
winning bids in any given round. The total upfront payment does not 
affect the total dollar amount the bidder may bid on any given license.
    108. In the Auction 95 Comment Public Notice, the Bureau proposed 
to make the upfront payments equal to the minimum opening bids. The 
Bureau further proposed that each license be assigned a specific number 
of bidding units equal to the upfront payment listed for the license, 
on a bidding unit for dollar basis. The bidding unit level for each 
license will remain constant throughout the auction. The Bureau 
received no comments on the proposal. The Bureau adopts its proposed 
upfront payments. The upfront payment and bidding units for each 
license will be $500 and 500 bidding units. The complete list of 
licenses for Auction 95 is available as separate ``Attachment A'' files 
at https://wireless.fcc.gov/auctions/95/.
    109. 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 licenses 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.

[[Page 24415]]

    110. If an applicant is a former defaulter, it must calculate its 
upfront payment for all of its identified licenses by multiplying the 
number of bidding units on which it wishes to be active by 1.5. In 
order to calculate the number of bidding units to assign to former 
defaulters, the Commission will divide the upfront payment received by 
1.5 and round the result up to the nearest bidding unit.

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

    111. To ensure that refunds of upfront payments are processed in an 
expeditious manner, the Commission is requesting that all pertinent 
information 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.) Specific instructions were provided in 
the Auction 95 Procedures Public Notice for submission of wire transfer 
instructions by fax.

F. Auction Registration

    112. Approximately ten days before the auction, the Bureau 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.
    113. 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.
    114. Qualified bidders that do not receive this registration 
mailing will not be able to submit bids. Therefore, if this mailing is 
not received by noon on Wednesday, July 10, 2013, call the Auctions 
Hotline at (717) 338-2868. Receipt of this registration mailing is 
critical to participating in the auction, and each applicant is 
responsible for ensuring it has received all of the registration 
material.
    115. In the event that SecurID[supreg] tokens are lost or damaged, 
only a person who has been designated as an authorized bidder, the 
contact person, or the certifying official on the applicant's short-
form application may request replacements. To request replacement of 
these items, call Technical Support at (877) 480-3201, option nine; 
(202) 414-1250; or (202) 414-1255 (TTY).

G. Remote Electronic Bidding

    116. The Commission will conduct this auction over the Internet, 
and telephonic bidding will be available as well. Only qualified 
bidders are permitted to bid. Each applicant should indicate its 
bidding preference--electronic or telephonic--on its FCC Form 175. In 
either case, each authorized bidder must have its own SecurID[supreg] 
token, which the Commission will provide at no charge. Each applicant 
with one authorized bidder will be issued two SecurID[supreg] tokens, 
while applicants with two or three authorized bidders will be issued 
three tokens. For security purposes, the SecurID[supreg] tokens, the 
telephonic bidding telephone number, and the ``Integrated Spectrum 
Auction System (ISAS) Bidder's Guide'' are only mailed to the contact 
person at the contact address listed on the FCC Form 175. Each 
SecurID[supreg] token is tailored to a specific auction. 
SecurID[supreg] tokens issued for other auctions or obtained from a 
source other than the FCC will not work for Auction 95.

H. Mock Auction--July 12, 2013

    117. All qualified bidders will be eligible to participate in a 
mock auction on Friday, July 12, 2013. The mock auction will enable 
bidders to become familiar with the FCC Auction System prior to the 
auction. The Bureau strongly recommends that all bidders participate in 
the mock auction. Details will be announced by public notice.

IV. Auction

    118. The first round of bidding for Auction 95 will begin on 
Tuesday, July 16, 2013. The initial bidding schedule will be announced 
in a public notice listing the qualified bidders, which is released 
approximately 10 days before the start of the auction.

A. Auction Structure

i. Simultaneous Multiple Round Auction
    119. In Auction 95 all licenses will be auctioned in a single 
auction 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. A bidder may 
bid on, and potentially win, any number of licenses. The Bureau 
received no comment on this proposal, and this proposal is adopted. 
Unless otherwise announced, bids will be accepted on all licenses in 
each round of the auction until bidding stops on every license.
ii. Limited Information Disclosure Procedures: Information Available to 
Bidders Before and During the Auction
    120. In the Auction 95 Comment Public Notice, the Bureau proposed 
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. The 
Bureau sought comment on the proposal to implement anonymous bidding 
and on any alternatives for Auction 95. The Bureau received no comment 
on this proposal. Because the Bureau finds that the competitive 
benefits associated with anonymous bidding support adoption of such 
procedures, it adopts the limited information procedures proposed in 
the Auction 95 Comment Public Notice.
    121. In Auction 95, the Commission will not disclose information 
regarding license selection or the amounts of bidders' upfront payments 
and bidding eligibility. As in the past, the Commission will disclose 
the other portions of applicants' short-form applications through its 
online database, and certain application-based information through 
public notices.
    122. To assist applicants in identifying other parties subject to 
47 CFR 1.2105(c), the Bureau will 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. Specifically, after the Bureau 
conducts its initial review of applications to participate in Auction 
95, it will send to each applicant in Auction 95 a letter that lists 
the other applicants that have pending short-form applications for 
licenses in any of the same or overlapping geographic areas. The list 
will identify the other applicants by name but will not list their 
license selections. As in past auctions, additional information 
regarding other applicants that is needed to comply

[[Page 24416]]

with 47 CFR 1.2105(c)--such as the identities of other applicants' 
controlling interests and entities with a greater than ten percent 
ownership interest--will be available through the publicly accessible 
online short-form application database.
    123. When completing short-form applications, applicants should 
avoid any statements or disclosures that may violate the Commission's 
prohibition of certain communications, pursuant to 47 CFR 1.2105(c), 
particularly in light of the Commission's procedures regarding the 
availability of certain information in Auction 95. While applicants' 
license selections will not be disclosed until after Auction 95 closes, 
the Commission will disclose other portions of short-form applications 
through its online database and public notices. Accordingly, applicants 
should avoid including any information in their short-form applications 
that might convey information regarding license selections. For 
example, applicants should avoid using applicant names that refer to 
licenses being offered, referring to certain licenses or markets in 
describing bidding agreements, or including any information in 
attachments that may otherwise disclose applicants' license selections.
    124. If an applicant is found to have violated the Commission's 
rules or antitrust laws in connection with its participation in the 
competitive bidding process, the applicant may be subject to various 
sanctions, including forfeiture of its upfront payment, down payment, 
or full bid amount and prohibition from participating in future 
auctions.
    125. The Bureau hereby warns applicants that the direct or indirect 
communication to other applicants or the public disclosure of non-
public information (e.g., bid withdrawals, proactive waivers submitted, 
reductions in eligibility) could violate the Commission's anonymous 
bidding procedures and 47 CFR 1.2105(c). To the extent an applicant 
believes that such a disclosure is required by law or regulation, 
including regulations issued by the Securities and Exchange Commission, 
the Bureau strongly urges that the applicant consult with the 
Commission staff in the Auctions and Spectrum Access Division before 
making such disclosure.
iii. Eligibility and Activity Rules
    126. The Bureau will use upfront payments to determine initial 
(maximum) eligibility (as measured in bidding units) for Auction 95. 
The amount of the upfront payment submitted by a bidder determines 
initial bidding eligibility, the maximum number of bidding units on 
which a bidder may be active. As noted earlier, each license is 
assigned a specific number of bidding units as listed in the complete 
list of licenses available as separate ``Attachment A'' files at https://wireless.fcc.gov/auctions/95/. Bidding units assigned to each license 
do not change as prices rise during the auction. Upfront payments are 
not attributed to specific licenses. Rather, a bidder may place bids on 
any of the licenses selected on its FCC Form 175 as long as the total 
number of bidding units associated with those licenses does not exceed 
its current eligibility. Eligibility cannot be increased during the 
auction; it can only remain the same or decrease. Thus, in calculating 
its upfront payment amount, an applicant must determine the maximum 
number of bidding units it may wish to bid on or hold provisionally 
winning bids on in any single round, and submit an upfront payment 
amount covering that total number of bidding units. At a minimum, an 
applicant's upfront payment must cover the bidding units for at least 
one of the licenses it selected on its FCC Form 175. The total upfront 
payment does not affect the total dollar amount a bidder may bid on any 
given license.
    127. In order to ensure that an auction closes within a reasonable 
period of time, an activity rule requires bidders to bid actively 
throughout the auction, rather than wait until late in the auction 
before participating. Bidders are required to be active on a specific 
percentage of their current bidding eligibility during each round of 
the auction. A bidder's activity level in a round is the sum of the 
bidding units associated with licenses covered by the bidder's new and 
provisionally winning bids.
    128. A bidder is considered active on a license in the current 
round if it is either the provisionally winning bidder at the end of 
the previous bidding round and does not withdraw the provisionally 
winning bid in the current round, or if it submits a bid in the current 
round.
    129. The minimum required activity is expressed as a percentage of 
the bidder's current eligibility, and increases by stage as the auction 
progresses. Because these procedures have proven successful in 
maintaining the pace of previous auctions, the Bureau adopts them for 
Auction 95. 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.
iv. Auction Stages
    130. In the Auction 95 Comment Public Notice, the Bureau proposed 
to conduct the auction in two stages and employ an activity rule. Under 
the Bureau's proposal, a bidder desiring to maintain its current 
bidding eligibility would be required to be active on licenses 
representing at least 80 percent of its current bidding eligibility, 
during each round of Stage One, and at least 95 percent of its current 
bidding eligibility in Stage Two. The Commission received no comments 
on this proposal. The Bureau finds, for now, that two stages for an 
activity requirement adequately balances the desire to conclude the 
auction quickly with giving sufficient time for bidders to consider the 
status of the bidding and to place bids. Therefore, the Bureau adopts 
the two stages as described in the Auction 95 Procedures Public Notice. 
Activity Rule Waivers.
    131. In the Auction 95 Comment Public Notice, the Bureau proposed 
that each bidder in the auction be provided with three activity rule 
waivers. The Bureau received no comments on this issue.
    132. Therefore, the Bureau adopts this proposal to provide bidders 
with three activity rule waivers. Bidders may use an activity rule 
waiver in any round during the course of the auction. Use of an 
activity rule waiver preserves the bidder's eligibility despite its 
activity in the current round being below the required minimum activity 
level. An activity rule waiver applies to an entire round of bidding 
and not to a particular license. Waivers can be either proactive or 
automatic and are principally a mechanism for auction participants to 
avoid the loss of bidding eligibility in the event that exigent 
circumstances prevent them from placing a bid in a particular round.
    133. The FCC Auction System assumes that a bidder with insufficient 
activity would prefer to apply 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. If no waivers remain and the activity requirement is not 
satisfied, the FCC Auction System will permanently reduce the bidder's 
eligibility, possibly curtailing or

[[Page 24417]]

eliminating the ability to place additional bids in the auction.
    134. 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 
described above. 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.
    135. Finally, a bidder may apply an activity rule waiver 
proactively as a means to keep the auction open without placing a bid. 
If a proactive waiver is applied (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. However, 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 submit 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 bidder submits a 
proactive waiver, the bidder cannot unsubmit the waiver even if the 
round has not yet ended.
v. Auction Stopping Rules
    136. For Auction 95, the Bureau proposed to employ a simultaneous 
stopping rule approach, which means all licenses remain available for 
bidding until bidding stops simultaneously 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. The Bureau also sought 
comment on alternative versions of the simultaneous stopping rule for 
Auction 95.
    137. The Bureau proposed to exercise the options discussed in the 
Auction 95 Procedures Public Notice 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 proposed 
to retain the discretion to exercise any of these options with or 
without prior announcement during the auction. The Bureau received no 
comment on these proposals and adopts them for Auction 95.
vi. Auction Delay, Suspension, or Cancellation
    138. In the Auction 95 Comment Public Notice, the Bureau proposed 
that, by public notice or by announcement during the auction, it may 
delay, suspend, or cancel the auction in the event of natural disaster, 
technical obstacle, administrative or weather necessity, evidence of an 
auction security breach or unlawful bidding activity, or for any other 
reason that affects the fair and efficient conduct of competitive 
bidding. The Bureau received no comment on this issue.
    139. Because this approach has proven effective in resolving 
exigent circumstances in previous auctions, the Bureau adopts these 
proposals regarding auction delay, suspension, or cancellation. By 
public notice or by announcement during the auction, the Bureau may 
delay, suspend, or cancel the auction in the event of natural disaster, 
technical obstacle, administrative or weather necessity, evidence of an 
auction security breach or unlawful bidding activity, or for any other 
reason that affects the fair and efficient conduct of competitive 
bidding. In such cases, the Bureau, in its sole discretion, may 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 Bureau to delay or suspend the 
auction. The Bureau emphasize that it will exercise use of this 
authority solely at its discretion, and not as a substitute for 
situations in which bidders may wish to apply their activity rule 
waivers.

B. Bidding Procedures

i. Round Structure
    140. The initial schedule of bidding rounds will be announced in 
the public notice listing the qualified bidders, which is released 
approximately 10 days before the start of the auction. Each bidding 
round is followed by the release of round results. Details regarding 
formats and locations of round results will also be included in the 
qualified bidders public notice. Multiple bidding rounds may be 
conducted each day.
    141. The Bureau has the discretion to change the bidding schedule 
in order to foster an auction pace that reasonably balances speed with 
the bidders' needs to study round results and adjust their bidding 
strategies. The Bureau may change the amount of time for the bidding 
rounds, the amount of time between rounds, or the number of rounds per 
day, depending upon bidding activity and other factors.
ii. Reserve Price and Minimum Opening Bids
    142. In the Auction 95 Comment Public Notice, the Bureau did not 
propose to establish reserve prices for the licenses in Auction 95. The 
Bureau did, however, propose to establish minimum opening bids for each 
license, reasoning that a minimum opening bid, which has been used in 
other auctions, is an effective tool for accelerating the competitive 
bidding process. Specifically, for Auction 95, the Bureau proposed to 
set the minimum opening bid for each license at $500.
    143. The Bureau sought comment on its proposal for minimum opening 
bids and, in the alternative, on whether, consistent with Section 
309(j), the public interest would be served by having no minimum 
opening bids. The Bureau received no comments on our proposed minimum 
opening bids.
    144. The Bureau finds that the proposed minimum opening bids will 
promote an appropriate auction pace and avoid unnecessarily prolonging 
Auction 95. The Bureau therefore adopts its proposal to set the minimum 
opening bid for each license available in Auction 95 at $500. The 
complete list of licenses for Auction 95 is available as separate 
``Attachment A'' files at https://wireless.fcc.gov/auctions/95/.
iii. Bid Amounts
    145. In the Auction 95 Comment Public Notice, the Bureau proposed 
that in each round, eligible bidders be able to place a bid on a given 
license using one or more pre-defined bid amounts. Under the proposal, 
the FCC Auction System interface will list the acceptable bid amounts 
for each license. No comments were received on this issue. Based on the 
Commission's experience in prior auctions, the Bureau adopts this 
proposal for Auction 95.
a. Minimum Acceptable Bids
    146. 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

[[Page 24418]]

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 
minimum acceptable bid amount will be calculated by multiplying the 
provisionally winning bid amount times one plus the minimum acceptable 
bid percentage. For example, if 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.
    147. In the Auction 95 Comment Public Notice, the Bureau proposed 
to use a minimum acceptable bid percentage of 10 percent. The Bureau 
did not receive any comments on this proposal. Our experience in 
previous auctions assures us that a minimum acceptable bid percentage 
of 10 percent is sufficient to ensure active bidding. Therefore, the 
Bureau will begin the auction with a minimum acceptable bid percentage 
of 10 percent.
b. Additional Bid Amounts
    148. Any additional bid amounts are calculated 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; 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, etc.
    149. The Bureau proposed to start with eight additional bid amounts 
(for a total of nine bid amounts) per license but also sought comment 
on whether, in the alternative, to use fewer or no additional bid 
amounts per license in a given round. The Bureau proposed to use a bid 
increment percentage of 5 percent. The Bureau received no comments on 
this proposal.
    150. The Bureau also sought comment on the circumstances under 
which the Bureau should 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 
any additional bid amount may increase compared with the immediately 
preceding acceptable bid amount. No commenters addressed this question.
    151. Therefore, the Bureau adopts its proposal to begin the auction 
with eight additional bid amounts per license. The Bureau will also 
start the auction without a limit on the dollar amount by which minimum 
acceptable bids and additional bid amounts may increase. 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 determine that 
circumstances so dictate. Further, the Bureau proposed to retain the 
discretion to do so on a license-by-license basis. If the Bureau 
exercise this discretion, it will alert bidders by announcement in the 
FCC Auction System during the auction.
iv. Provisionally Winning Bids
    152. At the end of each bidding round, a ``provisionally winning 
bid'' will be determined based on the highest bid amount received for 
each license. A provisionally winning bid will remain the provisionally 
winning bid until there is a higher bid on the same license at the 
close of a subsequent round. Provisionally winning bids at the end of 
the auction become the winning bids. Bidders are reminded that 
provisionally winning bids count toward activity for purposes of the 
activity rule.
    153. In the Auction 95 Comment Public Notice, the Bureau proposed 
to use a random number generator to select a single provisionally 
winning bid in the event of identical high bid amounts being submitted 
on a license in a given round (i.e., tied bids). No comments were 
received on this proposal.
    154. The Bureau adopts the tied bids proposal. The FCC Auction 
System will assign a random number to each bid upon submission. The 
tied bid with the highest random number wins the tiebreaker, and 
becomes the provisionally winning bid. Bidders, regardless of whether 
they hold a provisionally winning bid, 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.
v. Bidding
    155. All bidding will take place remotely either through the FCC 
Auction System or by telephonic bidding. There will be no on-site 
bidding during Auction 95. Please note that telephonic bid assistants 
are required to use a script when entering bids placed by telephone. 
Telephonic bidders are therefore reminded to allow sufficient time to 
bid by placing their calls well in advance of the close of a round. The 
length of a call to place a telephonic bid may vary; please allow a 
minimum of ten minutes.
    156. A bidder's ability to bid on specific licenses is determined 
by two factors: (1) the licenses selected on the bidder's FCC Form 175 
and (2) the bidder's eligibility. The bid submission screens will allow 
bidders to submit bids on only those licenses the bidder selected on 
its FCC Form 175.
    157. In order to access the bidding function of the FCC Auction 
System, bidders must be logged in during the bidding round using the 
passcode generated by the SecurID[supreg] token and a personal 
identification number (``PIN'') created by the bidder. Bidders are 
strongly encouraged to print a ``round summary'' for each round after 
they have completed all of their activity for that round.
    158. In each round, eligible bidders will be able to place bids on 
a given license in any of up to nine pre-defined bid amounts. For each 
license, the FCC Auction System will list the acceptable bid amounts in 
a drop-down box. Bidders use the drop-down box to select from among the 
acceptable bid amounts. The FCC Auction System also includes an 
``upload'' function that allows text files containing bid information 
to be uploaded.
    159. Until a bid has been placed on a license, the minimum 
acceptable bid amount for that license will be equal to its minimum 
opening bid amount. Once there are bids on a license, minimum 
acceptable bids for the following round will be determined.
    160. During a round, an eligible bidder may submit bids for as many 
licenses as it wishes (providing that it is eligible to bid on the 
specific license), remove bids placed in the current bidding round, 
withdraw provisionally winning bids from previous rounds, or 
permanently reduce eligibility. If multiple bids are submitted for the 
same license in the same round, the system takes the last bid entered 
as that bidder's bid for the round. Bidding units associated with 
licenses for which the bidder has removed or withdrawn bids do not 
count towards current activity.
    161. Finally, bidders are cautioned to select their bid amounts 
carefully because bidders that withdraw a provisionally winning bid 
from a previous round, even if the bid was

[[Page 24419]]

mistakenly or erroneously made, are subject to bid withdrawal payments.
vi. Bid Removal and Bid Withdrawal
    162. In the Auction 95 Comment Public Notice, the Bureau proposed 
bid removal and bid withdrawal procedures. The Bureau sought comment on 
permitting a bidder to remove a bid before the close of the round in 
which the bid was placed. With respect to bid withdrawals, the Bureau 
proposed limiting each bidder to withdrawals of provisionally winning 
bids in only one round during the course of the auction. The round in 
which withdrawals are used would be at each bidder's discretion.
    163. The Bureau received no comments on this issue. The proposed 
procedures will provide each bidder with appropriate flexibility during 
the auction; therefore the Bureau adopts this proposal for Auction 95.
    164. Bid Removal. Before the close of a bidding round, a bidder has 
the option of removing any bids placed in that round. By using the 
``remove bids'' function in the FCC Auction System, a bidder may 
effectively ``undo'' any bid placed within that round. A bidder 
removing a bid placed in the same round is not subject to withdrawal 
payments. If a bid is placed on a license during a round, it will count 
towards the activity for that round, but when that bid is then removed 
during the same round it was placed, the activity associated with it is 
also removed, i.e., a bid that is removed does not count toward bidding 
activity.
    165. Bid Withdrawal. Once a round closes, a bidder may no longer 
remove a bid. However, in a later round, a bidder may withdraw 
provisionally winning bids from previous rounds for licenses using the 
``withdraw bids'' function in the FCC Auction System. A provisionally 
winning bidder that withdraws its provisionally winning bid from a 
previous round during the auction is subject to the bid withdrawal 
payments specified in 47 CFR 1.2104(g). Once a bid withdrawal is 
submitted during a round, that withdrawal cannot be unsubmitted even if 
the round has not yet ended.
    166. If a provisionally winning bid is withdrawn, the minimum 
acceptable bid amount will equal the amount of the second highest bid 
received for the license, which may be less than, or in the case of 
tied bids, equal to, the amount of the withdrawn bid. The Commission 
will serve as a placeholder provisionally winning bidder on the license 
until a new bid is submitted on that license.
    167. Calculation of Bid Withdrawal Payment. Generally, the 
Commission imposes payments on bidders that withdraw provisionally 
winning bids during the course of an auction. If a bidder withdraws its 
bid and there is no higher bid in the same or subsequent auction(s), 
the bidder that withdrew its bid is responsible for the difference 
between its withdrawn bid and the winning bid in the same or subsequent 
auction(s). If there are multiple bid withdrawals on a single license 
and no subsequent higher bid is placed and/or the license is not won in 
the same auction, the payment for each bid withdrawal will be 
calculated based on the sequence of bid withdrawals and the amounts 
withdrawn. No withdrawal payment will be assessed for a withdrawn bid 
if either the subsequent winning bid or any subsequent intervening 
withdrawn bid, in either the same or subsequent auction(s), equals or 
exceeds that withdrawn bid. Thus, a bidder that withdraws a bid will 
not be responsible for any final withdrawal payment if there is a 
subsequent higher bid in the same or subsequent auction(s).
    168. 47 CFR 1.2104(g)(1) sets forth the payment obligations of a 
bidder that withdraws a provisionally winning bid on a license during 
the course of an auction, and provides for the assessment of interim 
bid withdrawal payments. In the Auction 95 Comment Public Notice, the 
Bureau proposed to establish this percentage at ten percent for Auction 
95 and sought comment on the proposal.
    169. The Bureau received no comments on this issue. The Bureau 
adopted a ten percent payment amount for prior paging auctions, and the 
Bureau adopts its proposal for a ten percent payment amount for this 
auction. The Commission will assess an interim withdrawal payment equal 
to ten percent of the amount of the withdrawn bids. The ten percent 
interim payment will be applied toward any final bid withdrawal payment 
that will be assessed after subsequent auction of the license. 
Assessing an interim bid withdrawal payment ensures that the Commission 
receives a minimal withdrawal payment pending assessment of any final 
withdrawal payment. 47 CFR 1.2104(g) provides specific examples showing 
application of the bid withdrawal payment rule.
vii. Round Results
    170. Limited information about the results of a round will be made 
public after the conclusion of the round. Specifically, after a round 
closes, the Bureau will make available for each license, its current 
provisionally winning bid amount, the minimum acceptable bid amount for 
the following round, the amounts of all bids placed on the license 
during the round, and whether the license is FCC held. The system will 
also provide an entire license history detailing all activity that has 
taken place on a license with the ability to sort by round number. The 
reports will be publicly accessible. Moreover, after the auction 
closes, the Bureau will make available complete reports of all bids 
placed during each round of the auction, including bidder identities.
viii. Auction Announcements
    171. The Commission will use auction announcements to report 
necessary information such as schedule changes and stage transitions. 
All auction announcements will be available by clicking a link in the 
FCC Auction System.

V. Post-Auction Procedures

    172. Shortly after bidding has ended, the Commission will issue a 
public notice declaring the auction closed, identifying the winning 
bidders, and establishing the deadlines for submitting down payments, 
final payments, long-form applications, and ownership disclosure 
information reports.

A. Down Payments

    173. Within ten business days after release of the auction closing 
public notice, each winning bidder must submit sufficient funds (in 
addition to its upfront payment) to bring its total amount of money on 
deposit with the Commission for Auction 95 to twenty percent of the net 
amount of its winning bids (gross bids less any applicable small 
business bidding credit).

B. Final Payments

    174. Each winning bidder will be required to submit the balance of 
the net amount of its winning bids within ten business days after the 
applicable deadline for submitting down payments.

C. Long-Form Application (FCC Form 601)

    175. Within ten business days after release of the auction closing 
notice, winning bidders must electronically submit a properly completed 
long-form application (FCC Form 601) for the license(s) they won 
through Auction 95. Winning bidders claiming eligibility for a small 
business bidding credit must demonstrate their eligibility for the 
bidding credit. Further instructions on these and other filing 
requirements will

[[Page 24420]]

be provided to winning bidders in the auction closing public notice.

D. Ownership Disclosure Information Report (FCC Form 602)

    176. Within ten business days after release of the auction closing 
public notice, each winning bidder must also comply with the ownership 
reporting requirements in 47 CFR 1.913, 1.919, and 1.2112 by submitting 
an ownership disclosure information report for wireless 
telecommunications services (FCC Form 602) with its long-form 
application.
    177. If an applicant already has a complete and accurate FCC Form 
602 on file in ULS, it is not necessary to file a new report, but 
applicants must verify that the information on file with the Commission 
is complete and accurate. If the applicant does not have an FCC Form 
602 on file, or if it is not complete and accurate, the applicant must 
submit one.
    178. When an applicant submits a short-form application, ULS 
automatically creates an ownership record. This record is not an FCC 
Form 602, but may be used to pre-fill the FCC Form 602 with the 
ownership information submitted on the applicant's short-form 
application. Applicants must review the pre-filled information and 
confirm that it is complete and accurate as of the filing date of the 
long-form application before certifying and submitting the FCC Form 
602. Further instructions will be provided to winning bidders in the 
auction closing public notice.

E. Tribal Lands Bidding Credit

    179. A winning bidder that intends to use its license(s) to deploy 
facilities and provide services to federally recognized tribal lands 
that are unserved by any telecommunications carrier or that have a 
wireline penetration rate equal to or below 85 percent is eligible to 
receive a tribal lands bidding credit as set forth in 47 CFR 1.2107 and 
1.2110(f). A tribal lands bidding credit is in addition to, and 
separate from, any other bidding credit for which a winning bidder may 
qualify.
    180. Unlike other bidding credits that are requested prior to the 
auction, a winning bidder applies for the tribal lands bidding credit 
after the auction when it files its long-form application (FCC Form 
601). When initially filing the long-form application, the winning 
bidder will be required to advise the Commission whether it intends to 
seek a tribal lands bidding credit, for each license won in the 
auction, by checking the designated box(es). After stating its intent 
to seek a tribal lands bidding credit, the applicant will have 180 days 
from the close of the long-form application filing window to amend its 
application to select the specific tribal lands to be served and 
provide the required tribal government certifications. Licensees 
receiving a tribal lands bidding credit are subject to performance 
criteria as set forth in 47 CFR 1.2110(f)(3)(vii).
    181. For additional information on the tribal lands bidding credit, 
including how the amount of the credit is calculated, applicants should 
review the Commission's rulemaking proceeding regarding tribal lands 
bidding credits and related public notices. Relevant documents can be 
viewed on the Commission's Web site by going to https://
wireless.fcc.gov/auctions/ and clicking on the Tribal Lands Credits 
link.

F. Default and Disqualification

    182. Any winning bidder that defaults or is disqualified after the 
close of the auction (i.e., fails to remit the required down payment 
within the prescribed period of time, fails to submit a timely long-
form application, fails to make full payment, or is otherwise 
disqualified) will be subject to the payments described in 47 CFR 
1.2104(g)(2). 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.
    183. The percentage of the applicable bid to be assessed as an 
additional payment for defaults in a particular auction is established 
in advance of the auction. Accordingly, in the Auction 95 Comment 
Public Notice, the Bureau proposed to set the additional default 
payment for this auction at ten percent of the applicable bid. The 
Bureau received no comments on this proposal, and it is therefore 
adopted.
    184. Finally, in the event of a default, the Commission has the 
discretion to re-auction the license or offer it to the next highest 
bidder (in descending order) at its final bid amount. In addition, if a 
default or disqualification involves gross misconduct, 
misrepresentation, or bad faith by an applicant, the Commission may 
declare the applicant and its principals ineligible to bid in future 
auctions, and may take any other action that it deems necessary, 
including institution of proceedings to revoke any existing 
authorizations held by the applicant.

G. Refund of Remaining Upfront Payment Balance

    185. After the auction, applicants that are not winning bidders or 
are winning bidders whose upfront payment exceeded the total net amount 
of their winning bids may be entitled to a refund of some or all of 
their upfront payment. All refunds will be returned to the payer of 
record, as identified on the FCC Form 159, unless the payer submits 
written authorization instructing otherwise. Bidders should not request 
a refund of their upfront payments before the Commission releases a 
public notice declaring the auction closed, identifying the winning 
bidders, and establishing the deadlines for submitting down payments, 
long-form applications, and final payments.

Federal Communications Commission.
Gary D. Michaels,
Deputy Chief, Auctions and Spectrum Access Division, WTB.
[FR Doc. 2013-09802 Filed 4-24-13; 8:45 am]
BILLING CODE 6712-01-P