Closed Auction of AM Broadcast Construction Permits Scheduled for May 6, 2014; Notice and Filing Requirements, Minimum Opening Bids, Upfront Payments, and Other Procedures for Auction 84, 8704-8713 [2014-03203]

Agencies

• FEDERAL COMMUNICATIONS COMMISSION

[Federal Register Volume 79, Number 30 (Thursday, February 13, 2014)]
[Notices]
[Pages 8704-8713]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-03203]


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FEDERAL COMMUNICATIONS COMMISSION

[AU Docket No. 13-268; DA 14-63]


Closed Auction of AM Broadcast Construction Permits Scheduled for 
May 6, 2014; Notice and Filing Requirements, Minimum Opening Bids, 
Upfront Payments, and Other Procedures for Auction 84

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: This document summarizes the procedures and minimum opening 
bids for the upcoming auction of AM Broadcast construction permits 
(Auction 84). The Public Notice summarized here is intended to 
familiarize applicants with the procedures and other requirements for 
participation in the auction.

DATES: Beginning on February 19, 2014, and until 6:00 p.m. Eastern Time 
(ET) on March 4, 2014, Auction 84 applicants may review, verify or 
update their previously-filed short-form applications electronically. 
Bidding in Auction 84 will start on May 6, 2014.

FOR FURTHER INFORMATION CONTACT: Wireless Telecommunications Bureau, 
Auctions and Spectrum Access Division: For legal and general auction 
questions: Lynne Milne or Kathryn Hinton at (202) 418-0660; For auction 
process and procedures: Jeff Crooks or Linda Sanderson at (202) 418-
0660. Media Bureau, Audio Division: For licensing information, service 
rule and other questions: Lisa Scanlan or Tom Nessinger at (202) 418-
2700. To request materials in accessible formats (Braille, large print, 
electronic files, or audio format) for people with disabilities, send 
an email to fcc504@fcc.gov or call the Consumer and Governmental 
Affairs Bureau at (202) 418-0530 or (202) 418-0432 (TTY).

[[Page 8705]]


SUPPLEMENTARY INFORMATION: This is a summary of the Auction 84 
Procedures Public Notice released on January 27, 2014. The complete 
text of the Auction 84 Procedures Public Notice, including an 
attachment and related Commission documents, is available for public 
inspection and copying from the FCC Reference Information Center, 445 
12th Street SW., Room CY-A257, Washington, DC 20554 during its regular 
business hours. The Auction 84 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 Web site: https://www.BCPIWEB.com. The Auction 84 
Procedures Public Notice and related documents also are available on 
the Internet at the Commission's Web site: https://wireless.fcc.gov/auctions/84/, or by using the search function for AU Docket No. 13-268 
on the Commission's Electronic Comment Filing System (ECFS) Web page at 
https://www.fcc.gov/cgb/ecfs/.

I. General Information

A. Background

    1. On November 18, 2013, the Wireless Telecommunications and Media 
Bureaus (the Bureaus) released a public notice seeking comment on 
competitive bidding procedures to be used in Auction 84. Four parties 
submitted filings in response to the Auction 84 Comment Public Notice, 
78 FR 72081, December 2, 2013.
    2. On January 27, 2014, the Bureaus released a public notice that 
established the procedures and minimum opening bid amounts for the 
upcoming Auction 84 that will resolve pending groups of mutually 
exclusive applications (MX groups) for AM construction permits 
identified in Attachment A of the Auction 84 Procedures Public Notice. 
Auction 84 is a closed auction with participation limited to those 
parties that are designated as an applicant for this auction on 
Attachment A of the Auction 84 Procedures Public Notice.

B. Construction Permits in Auction 84

    3. Auction 84 will offer construction permits for 22 new commercial 
AM stations. A list of the locations and frequencies of these stations 
is included in Attachment A of the Auction 84 Procedures Public Notice.
    4. Each qualified bidder will be eligible to bid on only those 
construction permits specified for that qualified bidder in Attachment 
A to the Auction 84 Procedures Public Notice. All applicants within 
each MX group are directly mutually exclusive with one another; 
therefore, no more than one construction permit will be awarded for 
each MX group identified in Attachment A.
    5. Two applicants sought removal of certain MX groups from this 
auction, and one of those requests was opposed by a third applicant. 
For the reasons discussed in the Auction 84 Procedures Public Notice, 
the Bureaus declined the requests to remove those MX groups from this 
auction.

C. Rules and Disclaimers

i. Relevant Authority
    6. 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. Broadcasters should also familiarize themselves with the 
Commission's AM broadcast service and competitive bidding requirements 
as well as Commission orders concerning competitive bidding of 
broadcast construction permits. Applicants must also be thoroughly 
familiar with the procedures, terms and conditions contained in the 
Auction 84 Procedures Public Notice and any future public notices that 
may be released in this proceeding.
    7. The terms contained in the Commission's rules, relevant orders, 
and public notices are not negotiable. The Commission may amend or 
supplement the information contained in its public notices at any time, 
and will issue public notices to convey any new or supplemental 
information to applicants. It is the responsibility of all applicants 
to remain current with all Commission rules and with all public notices 
pertaining to Auction 84.
ii. Prohibited Communications and Compliance With Antitrust Laws
    8. To ensure the competitiveness of the auction process 47 CFR 
1.2105(c) prohibits auction applicants for construction permits in any 
of the same geographic license areas from communicating with each other 
about bids, bidding strategies, or settlements unless such applicants 
have identified each other on their short-form applications 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
    9. The prohibition on certain communications in 47 CFR 1.2105(c) 
applies to any applicants that submit short-form applications seeking 
to participate in a Commission auction for construction permits in the 
same geographic license area. Thus, unless they have identified each 
other on their short-form applications as parties with whom they have 
entered into agreements under 47 CFR 1.2105(a)(2)(viii), applicants for 
any of the same geographic license areas must affirmatively avoid all 
communications with or disclosures to each other that affect or have 
the potential to affect bids or bidding strategy. In some instances, 
this prohibition extends to communications regarding the post-auction 
market structure. This prohibition applies to all applicants regardless 
of whether such applicants become qualified bidders or actually bid. In 
broadcast services, the ``geographic license area'' is the market 
designation of the particular service. In Auction 84, this prohibition 
applies to all applicants that have applied for construction permits 
for either the same geographic license area or the same MX group.
    10. For purposes of this prohibition, 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.
b. Prohibition Applies Until Down Payment Deadline
    11. 47 CFR 1.2105(c)'s prohibition on certain communications became 
effective at the initial short-form application filing deadline 
pursuant to which an Auction 84 short-form application was filed 
(either January 30, 2004 or October 5, 2007) and ends at the down 
payment deadline after the auction closes, which will be announced in a 
future public notice.
c. Prohibited Communications
    12. 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

[[Page 8706]]

bids or bidding strategy. 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.
    13. Applicants are cautioned that the Commission remains vigilant 
about prohibited communications taking place in other situations, 
including capital calls, requests for additional funds or use of the 
Commission's bidding system. Applicants 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. Similarly, an applicant's public 
statement of intent not to participate in Auction 84 bidding could also 
violate the rule. Applicants are hereby placed on notice that public 
disclosure of information relating to bids, or bidding strategies, or 
to post-auction market structures may violate 47 CFR 1.2105(c).
d. Disclosure of Bidding Agreements and Arrangements
    14. 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 construction permits being auctioned, including 
any agreements relating to post-auction market structure.
    15. If parties had agreed 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 did not reach 
any such agreement by the short-form filing deadline, they may not 
negotiate, discuss or communicate with any other applicant any 
information covered by the rule until after the down payment deadline.
e. 47 CFR 1.2105(c) Certification
    16. By electronically submitting a short-form application, each 
applicant in Auction 84 certified its compliance with 47 CFR 1.2105(c) 
and 73.5002(d). In particular, each applicant has certified under 
penalty of perjury 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 the applicant's bids, bidding strategies, or 
the particular construction permits on which it will or will not bid. 
However, the Bureaus caution that merely having filed 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. Any applicant found to 
have violated 47 CFR 1.2105(c) may be subject to sanctions.
f. Duty To Report Prohibited Communications
    17. An applicant is required by 47 CFR 1.65 to report to the 
Commission any communication the applicant has made to or received from 
another applicant after the short-form application filing deadline that 
affects or has the potential to affect bids or bidding strategy, unless 
such communication is made to or received from a party to an agreement 
identified under 47 CFR 1.2105(a)(2)(viii). 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. 47 CFR 1.2105(c)(6) provides that any applicant that makes 
or receives a communication that appears to violate 47 CFR 1.2105(c) 
must report such communication in writing to the Commission 
immediately, and in no case later than five business days after the 
communication occurs. The Commission has clarified that each 
applicant's obligation to report any such communication continues 
beyond the five-day period after the communication is made, even if the 
report is not made within the five-day period.
g. Procedure for Reporting Prohibited Communications
    18. 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). 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. This 
process differs from filing procedures used in connection with other 
Commission rules and processes which may call for submission of filings 
to the Commission's Office of the Secretary or ECFS. Filing through the 
Office of Secretary or ECFS could allow the report to become publicly 
available and might result in the communication of prohibited 
information to other auction applicants in violation of 47 CFR 
1.2105(c).
    19. Any reports required by 47 CFR 1.2105(c) must be filed 
consistent with the instructions set forth in the Auction 84 Procedures 
Public Notice. For Auction 84, 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 Margaret W. Wiener at the 
following email address: auction84@fcc.gov. If a report is submitted 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.
    20. 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.
h. Winning Bidders Must Disclose Terms of Agreements
    21. Each applicant that is a winning bidder will be required to 
disclose in its long-form application 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.
i. Additional Information Concerning Rule Prohibiting Certain 
Communications
    22. A summary listing of documents issued by the Commission and the 
Bureaus addressing the application of

[[Page 8707]]

47 CFR 1.2105(c) may be found in Attachment E of the Auctions 84 
Procedures Public Notice.
j. Antitrust Laws
    23. 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. 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. Due Diligence
    24. Each applicant is solely responsible for investigating and 
evaluating all technical and marketplace factors that may have a 
bearing on the value of the construction permits for AM broadcast 
facilities that it is seeking in this auction. Each bidder is 
responsible for assuring that, if it wins a construction permit, 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 permittee in a broadcast service, subject to certain conditions 
and regulations. An FCC auction does not constitute an endorsement by 
the FCC of any particular service, technology, or product, nor does an 
FCC construction permit or license constitute a guarantee of business 
success.
    25. An applicant should perform its due diligence research and 
analysis before proceeding, as it would with any new business venture. 
In particular, the Bureaus strongly encouraged each potential bidder to 
perform technical analyses and/or refresh its previous analyses to 
assure itself that, should it become a winning bidder for any Auction 
84 construction permit, it will be able to build and operate facilities 
that will fully comply with all applicable technical and legal 
requirements. Each applicant was strongly encouraged 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, 47 CFR 1.1301-1.1319.
    26. Each applicant should conduct its own research prior to Auction 
84 in order to determine the existence of pending administrative or 
judicial proceedings that might affect its decision to participate in 
the auction. Each participant in Auction 84 should continue such 
research throughout the auction. The due diligence considerations 
mentioned in the Auction 84 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.
    27. The Bureaus also reminded each applicant that pending and 
future judicial proceedings, as well as certain 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 permittees, incumbent 
licensees, or the construction permits available in Auction 84. Each 
prospective applicant is responsible for assessing the likelihood of 
the various possible outcomes and for considering the potential impact 
on construction permits available in this auction.
    28. Applicants are solely responsible for identifying associated 
risks and for investigating and evaluating the degree to which such 
matters may affect their ability to bid on, otherwise acquire, or make 
use of the construction permits available in Auction 84. Each potential 
bidder is responsible for undertaking research to ensure that any 
permits 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.
    29. Applicants may research the licensing database for the Media 
Bureau in order to determine which channels are already licensed to 
incumbent licensees or previously authorized to construction 
permittees. Licensing records are contained in the Commission's 
Consolidated Data Base System (CDBS).
    30. 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.
iv. Use of Integrated Spectrum Auction System
    31. Bidders will be able to participate in Auction 84 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.
v. Environmental Review Requirements
    32. Permittees or licensees must comply with the Commission's rules 
regarding implementation of the National Environmental Policy Act and 
other federal environmental statutes, 47 CFR 1.1301-1.1319. The 
construction of a broadcast facility is a federal action, and the 
permittee or licensee must comply with the Commission's environmental 
rules for each such facility. These environmental rules require, among 
other things, that the permittee or 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

[[Page 8708]]

(through the local authority with jurisdiction over floodplains). In 
assessing the effect of facility construction on historic properties, 
the permittee or licensee must follow the provisions of the FCC's 
Nationwide Programmatic Agreement Regarding the Section 106 National 
Historic Preservation Act Review Process. The permittee or 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 permittee or 
licensee must prepare environmental assessments for facilities that 
include high intensity white lights in residential neighborhoods or 
excessive radio frequency emission.

II. Short-Form Application Requirements

A. Updating Applicant's FCC Form 175 in ISAS--Remedial Filing Window 
Closes March 4, 2014

    33. All applicants listed in Attachment A of the Auction 84 
Procedures Public Notice previously filed an electronic Application to 
Participate in an FCC Auction (FCC Form 175) and sections of FCC Form 
301, Application for Construction Permit for Commercial Broadcast 
Station, including a separate Form 301 ``tech box'' for each proposed 
AM station, in either the filing window announced in the AM Auction 84 
Window Notice or the Supplemental Rockland County Window Notice.
    34. Each applicant should review carefully all of the information 
provided in the Auction 84 Procedures Public Notice, including the 
section regarding declarations as to former defaults and delinquencies. 
Attachment B of the Auction 84 Procedures Public Notice contains 
detailed instructions for Auction 84 applicants to review, verify and, 
if necessary, update their previously-filed short-form applications 
electronically using the FCC's web-based Auction System during the 
upcoming remedial filing window.
    35. Each applicant seeking to participate in this auction also 
should review its previously-filed electronic Form 175, verify the 
completeness and accuracy of all information in its application, and 
ensure that it complies with the Commission's competitive bidding 
rules, as well as the procedures and deadlines set forth in the Auction 
84 Procedures Public Notice. Consistent with the requirements of 47 CFR 
1.65, if information contained in the application has changed or is no 
longer accurate, information required by the Commission's competitive 
bidding rules has been omitted or was incomplete, or the applicant 
believes that information or its compliance with auction requirements 
needs further description or explanation, an applicant may need to 
update, revise or supplement information it previously submitted.
    36. If an applicant updates information in its short-form, it will 
need to fully complete the electronic form and certify the application 
in order to bring its short-form application into compliance with the 
current version of the FCC Form 175. For any change to be submitted and 
considered by the Commission, the applicant must complete the 
electronic Form 175 and submit its revised application by clicking on 
the SUBMIT button. Any such updates to short-form applications for 
Auction 84 must be resubmitted and confirmed prior to 6:00 p.m. ET on 
Thursday, March 4, 2014. Additional information about accessing, 
completing, and viewing the FCC Form 175 is included in Attachment B of 
the Auction 84 Procedures Public Notice.
    37. To the extent that an applicant may need to make changes to 
information previously submitted in an attachment, it may do so by 
uploading a new attachment describing any such changes. Applicants may 
view their previously-filed attachments, but may not delete any 
previously-filed attachment during the remedial filing window.
    38. Each applicant must disclose its current ownership information 
as required by 47 CFR 1.2105, 1.2110, 1.2112 and 73.5002. Those rules 
generally require disclosure of the following ownership information: 
all real parties in interest in the applicant, including the identity 
and relationship of those persons or entities directly or indirectly 
owning or controlling the applicant; name, address, and citizenship of 
any party directly or indirectly holding a 10 percent or greater 
interest in the applicant, as well as the percentage of interest held 
in the applicant and whether the interest is an indirect or direct 
interest; if there is an indirect interest in the auction applicant of 
10 percent or greater, the attachment must describe the relationship 
between the indirect interest holder and the auction applicant; whether 
the party directly or indirectly holding a 10 percent or greater 
interest in the applicant has voting or non-voting, common or 
preferred, stock and the specific amount of interest held; and any FCC-
regulated entity or applicant for an FCC license, in which the auction 
applicant or any real party in interest in the auction applicant owns a 
10 percent or greater interest. Such disclosure must include a 
description of the FCC-regulated entity's principal business and its 
relationship to the auction applicant.
    39. Auction 84 applicants were required to disclose information on 
ownership of the applicant in an attachment to the Form 175. To the 
extent an applicant needs to make any changes to information contained 
in its previously-filed ownership attachment(s), it may do so by 
uploading a new attachment.
    40. In certifying its application, each applicant certifies under 
penalty of perjury that it is legally, technically, financially and 
otherwise qualified to hold a Commission license. Submission of a Form 
175 (and any amendments thereto) constitutes a representation by the 
certifying person that he or she is an authorized representative of the 
applicant, that he or she has authority to bind 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, complete and correct. 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.

B. Minor Modifications to Short-Form Applications

    41. An Auction 84 applicant is permitted to make only minor changes 
to its application. Under 47 CFR 1.2105(b), 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. If revised or 
updated information constitutes a ``major amendment'' as defined by 47 
CFR 1.2105, such changes may result in disqualification of the 
applicant. After the initial application filing deadline, major 
amendments include a change of technical proposals, change of control 
of the applicant, or a claim of eligibility for a higher percentage of 
bidding credit.

C. Maintaining Current Information in Short-Form Applications

    42. Each applicant is solely responsible for providing complete and 
accurate information in its Form 175. 47 CFR 1.65 and 1.2105(b) require 
an applicant in competitive bidding

[[Page 8709]]

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. For example, if 
ownership changes result in the attribution of new media of mass 
communications that affect the applicant's qualifications for a new 
entrant bidding credit, such information must be clearly stated in the 
bidder's amendment. Events occurring after the initial application 
filing deadline, such as the acquisition of attributable interests in 
media of mass communications, may also cause diminishment or loss of 
the bidding credit, and must be reported immediately, and no later than 
five business days after the change occurs.
    43. An applicant cannot use the FCC Auction System outside of the 
remedial and resubmission filing windows to make changes to its short-
form application for other than administrative changes (e.g., changing 
contact information or the name of an authorized bidder).
    44. If 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. Any letter describing changes to an 
applicant's short-form application must be submitted by email to 
auction84@fcc.gov. The email summarizing the changes must include a 
subject or caption referring to Auction 84 and the name of the 
applicant, for example, ``Re: Changes to Auction 84 Short-Form 
Application of ABC Corp.''

D. Provisions Regarding Former and Current Defaulters

    45. Current defaulters or delinquents are not eligible to 
participate in Auction 84, 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 affiliates of its controlling interests (as 
defined by 47 CFR 1.2110), 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. 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 (as 
defined by 47 CFR 1.2110), has defaulted on any Commission construction 
permit or license or been delinquent on any non-tax debt owed to any 
Federal agency, but has since remedied all such defaults and cured all 
of the outstanding non-tax delinquencies.
    46. On the short-form application, an applicant must certify under 
penalty of perjury that it, its affiliates, its controlling interests, 
or the affiliates of its controlling interests, as defined by 47 CFR 
1.2110, is not in default on any payment for a Commission construction 
permit or license (including down payments) and 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, or the affiliates of its controlling interests, 
has ever been in default on any Commission construction permit or 
license or has ever been delinquent on any non-tax debt owed to any 
Federal agency. Such applicants should confirm that this information 
remains accurate, and revise its response if the initial response no 
longer is accurate.
    47. Applicants are encouraged to review guidance provided by the 
Wireless Telecommunications Bureau on default and delinquency 
disclosure requirements in the context of the short-form application 
process as described in the Auction 84 Procedures Public Notice. 
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.
    48. 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.
    49. Applicants were 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.
    50. Moreover, applicants in Auction 84 should note that any long-
form applications filed after the close of bidding will be reviewed for 
compliance with the Commission's red light rule, and such review may 
result in the dismissal of a winning bidder's long-form application. 
Applicants that have their long-form application dismissed will be 
deemed to have defaulted and will be subject to default payments under 
47 CFR 1.2104(g) and 1.2109(c).

III. Pre-Auction Procedures

A. Online Auction Tutorial--Available February 19, 2014

    51. An online tutorial will be available on the Auction 84 Web page 
by Wednesday, February 19, 2014. This online tutorial will provide 
information about pre-auction procedures, updating previously-filed 
short-form applications, auction conduct, the FCC Auction Bidding 
System, auction rules, and broadcast services rules. The tutorial will 
also provide an avenue to ask FCC staff questions about the auction, 
auction procedures, filing requirements, and other matters related to 
this auction. Additional information about this tutorial is provided in 
the Auction 84 Procedures Public Notice.

B. Upfront Payments--Due April 7, 2014

    52. Attachment A of the Auction 84 Procedures Public Notice 
specifies an upfront payment amount for each construction permit being 
offered in this auction. To be eligible to bid, an Auction 84 applicant 
must submit a timely and sufficient upfront payment by wire transfer, 
accompanied by an FCC Remittance Advice Form (FCC

[[Page 8710]]

Form 159), for at least one of the permits for which it is designated 
as an applicant on Attachment A to the Auction 84 Procedures Public 
Notice, and following the procedures and instructions set forth in 
Attachment C to the Auction 84 Procedures Public Notice. In order to 
meet the upfront payment deadline, an applicant's payment must be 
credited to the Commission's account for Auction 84 before 6:00 p.m. ET 
on April 7, 2014. The completed FCC Form 159 must be sent by fax to 
U.S. Bank in St. Louis, Missouri. All upfront payments must be made as 
instructed in the Auction 84 Procedures Public Notice and must be 
received in the proper account at U.S. Bank before 6:00 p.m. ET on 
April 7, 2014. Failure to deliver a sufficient upfront payment as 
instructed in the Auction 84 Procedures Public Notice by the deadline 
on April 7, 2014, will result in disqualification from participation in 
the auction.
i. Upfront Payments and Bidding Eligibility
    53. The specific upfront payment amounts and bidding units for each 
construction permit are specified in Attachment A of the Auction 84 
Procedures Public Notice. Applicants must make upfront payments 
sufficient to obtain bidding eligibility on the construction permits on 
which they will bid. The amount of the upfront payment submitted 
determines a bidder's initial bidding eligibility, the maximum number 
of bidding units on which a bidder may place bids in any single round. 
In order to bid on a particular construction permit, otherwise 
qualified bidders that are designated in Attachment A for that 
construction permit must have a current eligibility level that meets or 
exceeds the number of bidding units assigned to that construction 
permit. At a minimum, an applicant's total upfront payment must be 
enough to establish eligibility to bid on at least one of the 
construction permits designated for that applicant in Attachment A, or 
else the applicant will not be eligible to participate in the auction. 
An applicant does not have to make an upfront payment to cover all 
construction permits designated for that applicant in Attachment A, but 
only enough to cover the maximum number of bidding units that are 
associated with construction permits on which they wish to place bids 
and hold provisionally winning bids in any given round. (Provisionally 
winning bids are bids that would become final winning bids if the 
auction were to close after the given round.) The total upfront payment 
does not affect the total dollar amount the bidder may bid on any given 
construction permit.
    54. 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. A qualified bidder's maximum eligibility will not exceed 
the sum of the bidding units associated with the total number of 
construction permits identified for that applicant in Attachment A of 
the Auction 84 Procedures Public Notice. In some cases, a qualified 
bidder's maximum eligibility may be less than the amount of its upfront 
payment because the qualified bidder has either previously been in 
default on a Commission construction permit or license or delinquent on 
non-tax debt owed to a Federal agency, or has submitted an upfront 
payment that exceeds the total amount of bidding units associated with 
the construction permits designated for that bidder. In order to make 
this calculation, an applicant should add together the bidding units 
for all construction permits on which it seeks to be active in any 
given round. Applicants should check their calculations carefully, as 
there is no provision for increasing a bidder's eligibility after the 
upfront payment deadline.
    55. Applicants that are former defaulters must pay upfront payments 
50 percent greater than non-former defaulters. If an applicant is a 
former defaulter, it must calculate its upfront payment for all of its 
identified construction permits by multiplying the number of bidding 
units on which it wishes to be active by 1.5. In order to calculate the 
number of bidding units to assign to former defaulters, the Commission 
will divide the upfront payment received by 1.5 and round the result up 
to the nearest bidding unit. If a former defaulter fails to submit a 
sufficient upfront payment to establish eligibility to bid on at least 
one of the construction permits designated for that applicant in 
Attachment A of the Auction 84 Procedures Public Notice, the applicant 
will not be eligible to bid

C. Auction Registration

    56. Approximately ten days before the auction, the Bureaus will 
issue a public notice announcing all qualified bidders for the auction. 
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.
    57. 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, April 30, 2014, applicants should 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. 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.

D. Remote Electronic Bidding

    58. Only qualified bidders are permitted to bid. Qualified bidders 
are permitted to bid electronically via the Internet or by using the 
telephonic bidding option. All telephone calls are recorded. 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.

E. Mock Auction--May 2, 2014

    59. All qualified bidders will be eligible to participate in a mock 
auction on Friday, May 2, 2014. The mock auction will enable bidders to 
become familiar with the FCC Auction System prior to the auction. The 
Bureaus strongly recommended that all bidders participate in the mock 
auction.

IV. Auction

    60. The first round of bidding for Auction 84 is scheduled to begin 
on Tuesday, May 6, 2014. The initial bidding schedule will be announced 
in a public notice listing the qualified bidders.

A. Auction Structure

i. Simultaneous Multiple Round Auction
    61. All construction permits in Auction 84 will be auctioned in a 
single auction using the Commission's standard simultaneous multiple-
round auction format. This type of auction offers every construction 
permit for bid at the same time and consists of successive bidding 
rounds in which

[[Page 8711]]

eligible bidders may place bids on individual construction permits. A 
bidder may bid on, and potentially win, any number of construction 
permits for which that bidder is designated an applicant in Attachment 
A of the Auction 84 Procedures Public Notice. Unless otherwise 
announced, bids will be accepted on all construction permits in each 
round of the auction until bidding stops on every construction permit.
ii. Eligibility and Activity Rules
    62. 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. Each construction permit is 
assigned a specific number of bidding units as listed in Attachment A 
of the Auction 84 Procedures Public Notice. Bidding units assigned to 
each construction permit do not change as prices rise during the 
auction. Upfront payments are not attributed to specific construction 
permits. Rather, a bidder may place bids on any of the construction 
permits for which it is designated an applicant in Attachment A as long 
as the total number of bidding units associated with those construction 
permits does not exceed its current eligibility. Eligibility cannot be 
increased during the auction; it can only remain the same or decrease. 
Thus, in calculating its upfront payment amount, an applicant must 
determine the maximum number of bidding units it may wish to bid on or 
hold provisionally winning bids on in any single round, and submit an 
upfront payment amount covering that total number of bidding units. At 
a minimum, an applicant's upfront payment must cover the bidding units 
for at least one of the construction permits for which it is designated 
an applicant in Attachment A. The total upfront payment does not affect 
the total dollar amount a bidder may bid on any given construction 
permit.
    63. 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.
    64. A bidder's activity level in a round is the sum of the bidding 
units associated with construction permits covered by the bidder's new 
and provisionally winning bids. A bidder is considered active on a 
construction permit in the current round if it is either the 
provisionally winning bidder at the end of the previous bidding round 
or if it submits a bid in the current round.
    65. A bidder is required to be active on 100 percent of its current 
eligibility during each round of Auction 84. That is, a bidder must 
either place a bid or be a provisionally winning bidder during each 
round of the auction. Failure to maintain the requisite activity level 
will result in the use of an activity rule waiver, if any remain, or a 
reduction in the bidder's eligibility, possibly curtailing or 
eliminating the bidder's ability to place additional bids in the 
auction.
iii. Activity Rule Waivers
    66. The Bureaus decided 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 
construction permit. 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.
    67. 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 eliminating the ability to place 
additional bids in the auction.
    68. A bidder with insufficient activity may wish to reduce its 
bidding eligibility rather than use an activity rule waiver. If so, the 
bidder must affirmatively override the automatic waiver mechanism 
during the bidding round by using the ``reduce eligibility'' function 
in the FCC Auction System. In this case, the bidder's eligibility is 
permanently reduced to bring it into compliance with the activity rule. 
Reducing eligibility is an irreversible action; once eligibility has 
been reduced, a bidder will not be permitted to regain its lost bidding 
eligibility, even if the round has not yet closed.
    69. 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, 
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 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.
iv. Auction Stopping Rules
    70. For Auction 84, the Bureaus decided to employ a simultaneous 
stopping rule approach, which means all construction permits remain 
available for bidding until bidding stops simultaneously on every 
construction permit. More specifically, bidding will close on all 
construction permits after the first round in which no bidder submits 
any new bids or applies a proactive waiver.
    71. The Bureaus also adopted alternative versions of the 
simultaneous stopping rule for Auction 84: (1) The auction would close 
for all construction permits after the first round in which no bidder 
applies a proactive waiver or places any new bids on any construction 
permit on which it is not the provisionally winning bidder. Thus, 
absent any other bidding activity, a bidder placing a new bid on a 
construction permit for which it is the provisionally winning bidder 
would not keep the auction open under this modified stopping rule; (2) 
the auction would close for all construction permits after the first 
round in which no bidder applies a waiver or places any new bids on any 
construction permit that is not FCC-held. Thus, absent any other 
bidding activity, a bidder placing a new bid on a construction permit 
that does not already have a provisionally winning bid (an ``FCC-held'' 
construction permit) would not keep the auction open under this 
modified stopping rule; (3) the auction would close using a modified 
version of the simultaneous stopping rule that combines (a) and (b); 
(4) the auction would end after a specified number of additional 
rounds. If the Bureaus invoke

[[Page 8712]]

this special stopping rule, it will accept bids in the specified final 
round(s), after which the auction will close; and (5) the auction would 
remain open even if no bidder places any new bids or applies a waiver. 
In this event, the effect will be the same as if a bidder had applied a 
waiver. Thus, the activity rule will apply as usual, and a bidder with 
insufficient activity will either lose bidding eligibility or use a 
waiver.
    72. The Bureaus will exercise these alternative versions 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 alternative versions the Bureaus are likely to attempt to change 
the pace of the auction. For example, the Bureaus may adjust the pace 
of bidding by changing the number of bidding rounds per day and/or the 
minimum acceptable bids. The Bureaus retained the discretion to 
exercise any of these options with or without prior announcement during 
the auction.
v. Auction Delay, Suspension, or Cancellation
    73. The Bureaus, by public notice or by announcement during the 
auction, 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 Bureaus, in their 
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 Bureaus 
to delay or suspend the auction. The Bureaus emphasized that they will 
exercise this authority solely at their 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
    74. The initial schedule of bidding rounds will be announced in the 
public notice listing the qualified bidders. Each bidding round is 
followed by the release of round results. Multiple bidding rounds may 
be conducted each day.
    75. The Bureaus have the discretion to change the bidding schedule 
in order to foster an auction pace that reasonably balances speed with 
the bidders' need to study round results and adjust their bidding 
strategies. The Bureaus may 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
    76. The Bureaus did not establish reserve prices, but adopted 
specific minimum opening bid amounts for the construction permits 
available in Auction 84. Each minimum opening bid amount is listed in 
Attachment A to the Auction 84 Procedures Public Notice.
iii. Bid Amounts
    77. If a bidder has sufficient eligibility to place a bid on the 
particular construction permit, an eligible bidder will be able to 
place a bid in each round on a given construction permit in any of up 
to nine different pre-defined amounts. The FCC Auction System interface 
will list nine acceptable bid amounts for each construction permit. In 
the event of duplicate bid amounts due to rounding, the FCC Auction 
System will omit the duplicates and will list fewer acceptable bid 
amounts for the construction permit.
    78. The first of the acceptable bid amounts is called the minimum 
acceptable bid amount. The minimum acceptable bid amount for a 
construction permit will be equal to its minimum opening bid amount 
until there is a provisionally winning bid for the construction permit. 
After there is a provisionally winning bid for a permit, the minimum 
acceptable bid percentage will be 10 percent 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 of 10 percent. For example, the minimum acceptable bid 
amount will equal (provisionally winning bid amount) * (1.10), rounded.
    79. The Bureaus will begin the auction with a bid increment 
percentage of 5 percent. Thus, the eight additional bid amounts are 
calculated using the minimum acceptable bid amount and a bid increment 
percentage of 5 percent. The first additional acceptable bid amount 
equals the minimum acceptable bid amount times one plus the bid 
increment percentage of 5 percent, rounded. For example, the 
calculation is (minimum acceptable bid amount) * (1 + 0.05), rounded, 
or (minimum acceptable bid amount) * 1.05, rounded; the second 
additional acceptable bid amount equals the minimum acceptable bid 
amount times one plus two times the bid increment percentage, rounded, 
or (minimum acceptable bid amount) * 1.10, rounded; the third 
additional acceptable bid amount equals the minimum acceptable bid 
amount times one plus three times the bid increment percentage, 
rounded, or (minimum acceptable bid amount) * 1.15, rounded; etc. The 
Bureaus will round the results of these calculations using the standard 
rounding procedures for auctions.
    80. The Bureaus retain 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 
Bureaus determine that circumstances so dictate. Further, the Bureaus 
retain the discretion to do so on a construction permit-by-construction 
permit basis. The Bureaus also retain the discretion to limit (a) the 
amount by which a minimum acceptable bid for a construction permit may 
increase compared with the corresponding provisionally winning bid, and 
(b) the amount by which an additional bid amount may increase compared 
with the immediately preceding acceptable bid amount. For example, the 
Bureaus could set a $10,000 limit on increases in minimum acceptable 
bid amounts over provisionally winning bids. Thus, if calculating a 
minimum acceptable bid using the minimum acceptable bid percentage 
results in a minimum acceptable bid amount that is $12,000 higher than 
the provisionally winning bid on a construction permit, the minimum 
acceptable bid amount would instead be capped at $10,000 above the 
provisionally winning bid. If the Bureaus exercise this discretion, 
they will alert bidders by announcement in the FCC Auction System 
during the auction.
iv. Provisionally Winning Bids
    81. At the end of each bidding round, a ``provisionally winning 
bid'' will be determined based on the highest bid amount received for 
each construction permit. A provisionally winning bid will remain the 
provisionally winning bid until there is a higher bid on the same 
construction permit at the close of a subsequent round. Provisionally 
winning bids at the end of the auction become the winning bids. Bidders 
were reminded that provisionally winning bids count toward activity for 
purposes of the activity rule.
    82. The Bureaus will use a random number generator to select a 
single provisionally winning bid in the event of identical high bid 
amounts being submitted on a construction permit in a given round 
(i.e., tied bids). The FCC

[[Page 8713]]

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
    83. An applicant is not obligated to bid on all permits for which 
it is eligible. An Auction 84 applicant also must have sufficient 
bidding eligibility to place a bid on that particular construction 
permit.
    84. 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 84. Telephonic bid assistants are required to 
use a script when entering bids placed by telephone. The length of a 
call to place a telephonic bid may vary. Telephonic bidders were 
reminded to allow sufficient time to bid by placing their calls well in 
advance of the close of a round.
vi. Bid Removal and Bid Withdrawal
    85. Each bidder will have the option of removing any bids placed in 
a round provided that such bids are removed before the close of that 
bidding round. By using the ``remove bids'' function in the FCC Auction 
System, a bidder may effectively ``unsubmit'' any bid placed within 
that round. A bidder removing a bid placed in the same round is not 
subject to withdrawal payments. Removing a bid will affect a bidder's 
activity because a removed bid no longer counts toward bidding activity 
for the round. Once a round closes, a bidder may no longer remove a 
bid.
    86. The Bureaus decided to prohibit Auction 84 bidders from 
withdrawing any bids after the round in which the bids were placed has 
closed. Bidders are cautioned to select bid amounts carefully because 
no bid withdrawals will be allowed in Auction 84, even if a bid was 
mistakenly or erroneously made.
vii. Auction Announcements and Round Results
    87. The Commission will use auction announcements to report 
necessary information such as schedule changes.
    88. Bids placed during a round will not be made public until the 
conclusion of that round. After a round closes, the Bureaus will 
compile reports of all bids placed, current provisionally winning bids, 
new minimum acceptable bid amounts for the following round, whether the 
construction permit is FCC-held, and bidder eligibility status (bidding 
eligibility and activity rule waivers), and post the reports for public 
access.

V. Post-Auction Procedures

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

A. Down Payments

    90. 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 84 to twenty percent of the net 
amount of its winning bids (gross bids less any applicable new entrant 
bidding credits).
    91. The Bureaus declined one comments request to waive, modify, or 
refrain from implementing the down payment and final payment procedures 
of 47 CFR 1.2107(b) and 1.2109(a) for the reasons described in the 
Auction 84 Procedures Public Notice.

B. Final Payments

    92. 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

    93. The Commission's rules currently provide that within thirty 
days following the close of bidding and notification to the winning 
bidders, unless a longer period is specified by public notice, winning 
bidders must electronically submit a properly completed long-form 
application (FCC Form 301, Application for Construction Permit for 
Commercial Broadcast Station) and required exhibits for each 
construction permit won through Auction 84. Winning bidders claiming 
new entrant status must include an exhibit demonstrating their 
eligibility for the bidding credit. The Commission's rules also provide 
that a winning bidder in a commercial broadcast spectrum auction is 
required to submit an application filing fee with its post-auction 
long-form application.

D. Default and Disqualification

    94. 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 84 bidder's winning 
bid and the amount of the winning bid the next time a construction 
permit covering the same spectrum is won in an auction, plus an 
additional payment equal to a percentage of the defaulter's bid or of 
the subsequent winning bid, whichever is less. The Bureaus set the 
percentage of the applicable bid to be assessed as an additional 
default payment for this auction at twenty percent of the applicable 
bid.
    95. 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.

Federal Communications Commission.
Gary D. Michaels,
Deputy Chief, Auctions and Spectrum Access Division, WTB.
[FR Doc. 2014-03203 Filed 2-12-14; 8:45 am]
BILLING CODE 6712-01-P