Application Procedures for Broadcast Incentive Auction Scheduled To Begin on March 29, 2016; Technical Formulas for Competitive Bidding, 66429-66454 [2015-27621]

Agencies

• FEDERAL COMMUNICATIONS COMMISSION

[Federal Register Volume 80, Number 209 (Thursday, October 29, 2015)]
[Rules and Regulations]
[Pages 66429-66454]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-27621]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 1, 20, 27, and 73

[AU Docket No. 14-252; GN Docket No. 12-268; WT Docket No. 12-269; DA 
15-1183]


Application Procedures for Broadcast Incentive Auction Scheduled 
To Begin on March 29, 2016; Technical Formulas for Competitive Bidding

AGENCY: Federal Communications Commission.

ACTION: Final rule; requirements and procedures.

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SUMMARY: This document announces the final application procedures for 
the broadcast television spectrum incentive auction (Auction 1000), 
including the forward and reverse auctions (Auctions 1001 and 1002 
respectively). This document also summarizes detailed information, 
instructions, and deadlines for filing applications, as well as certain 
post-auction procedures established by the Commission's prior orders.

DATES: Reverse Auction (Auction 1001) applications must be filed prior 
to 6 p.m. Eastern Time (ET) on December 18, 2015; Forward Auction 
(Auction 1002) applications must be filed prior to 6 p.m. ET on January 
28, 2016.

FOR FURTHER INFORMATION CONTACT: Wireless Telecommunications Bureau, 
Auctions and Spectrum Access Division: For general auction questions: 
Linda Sanderson at (717) 338-2868; for reverse auction legal questions: 
Erin Griffith or Kathryn Hinton at (202) 418-0660; for forward auction 
legal questions: Valerie Barrish or Leslie Barnes at (202) 418-0660. 
Media Bureau, Video Division: For broadcaster questions: Dorann Bunkin 
at (202) 418-1636.

SUPPLEMENTARY INFORMATION: This is a summary of the Auction 1000 
Application Procedures Public Notice (Auction 1000 Application 
Procedures PN or Public Notice), AU Docket No. 14-252, GN Docket No. 
12-268, WT Docket No. 12-269, and DA 15-1183, released on October 15, 
2015. The complete text of the Auction 1000 Application Procedures PN, 
including all attachments and associated appendices, is available for 
public inspection and copying from 8:00 a.m. to 4:30 p.m. ET Monday 
through Thursday or from 8 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 complete text is also available on the 
Commission's Web site at https://wireless.fcc.gov, or by using the 
search function on the ECFS Web page at  https://www.fcc.gov/cgb/ecfs/. 
Alternative formats are available to persons with disabilities by 
sending an email to FCC504@fcc.gov or by calling the Consumer & 
Governmental Affairs Bureau at (202) 418-0530 (voice), (202) 418-0432 
(TTY).

Regulatory Flexibility Analysis

    As required by the Regulatory Flexibility Act of 1980, as amended 
(RFA), the Commission has prepared a Supplemental Final Regulatory 
Flexibility Analysis (SFRFA) of the possible significant economic 
impact on small entities by the procedures and instructions described 
in Attachment 4 of the Auction 1000 Application Procedures PN.

Report to Small Business Administration

    The Commission's Consumer and Governmental Affairs Bureau, 
Reference Information Center will send a copy of the Auction 1000 
Application Procedures PN, including the Supplemental Final Regulatory 
Flexibility Analysis (SFRFA), to the Chief Counsel for Advocacy of the 
Small Business Administration (SBA).

Paperwork Reduction Act

    This document contains new or modified information collection 
requirements subject to the Paperwork Reduction Act of 1995 (PRA), 
Public Law 104-13.

Congressional Review Act

    The Commission will send a copy of the Auction 1000 Application 
Procedures PN, including the SFRFA, in a report to be sent to Congress 
and the Government Accountability Office pursuant to the Congressional 
Review Act.

[[Page 66430]]

I. General Information

A. Introduction

    1. In the Auction 1000 Bidding Procedures PN, 80 FR 61918, October 
14, 2015, the Commission established the bidding procedures for both 
the reverse auction and the forward auction. Pursuant to the 
Commission's direction, the Auction 1000 Application Procedures PN 
establishes final application procedures for the reverse and forward 
auctions, provides detailed information, instructions, and deadlines 
for filing applications, and finalizes certain post-auction procedures 
established by the Commission's prior orders.
    2. The Auction 1000 Application Procedures PN includes an 
attachment with the final appendices providing the technical details 
implementing the Commission's decisions in the Auction 1000 Bidding 
Procedures PN regarding the clearing target determination procedure, 
the final television channel assignment plan, and the assignment of 
frequency-specific licenses to forward auction clock-phase winning 
bidders, as well as algorithms for reverse and forward auction bid 
processing. These final technical appendices reflect modifications made 
to the detailed proposals contained in the appendices of the Auction 
1000 Comment PN, 80 FR 4816, January 29, 2015, as a result of the 
Commission's decisions in the Auction 1000 Bidding Procedures PN. An 
additional attachment to the Auction 1000 Bidding Procedures PN 
provides information relating to the determination of opening prices 
for each bid option available to each eligible broadcast television 
licensee in the reverse auction, including the process for identifying 
``not-needed'' stations. Finally, the Auction 1000 Application 
Procedures PN includes as an attachment information on the PEA-by-PEA 
spectrum reserve eligibility of nationwide providers. Opening prices 
for each bid option available to each eligible broadcast television 
licensee in the reverse auction will be released in a separate public 
notice in the near future. Additional data and information related to 
the broadcast incentive auction, including the final constraints and 
the associated supporting files, is being made available on the Auction 
1000 Web site (https://www.fcc.gov/auctions/1000) contemporaneously with 
the release of the Auction 1000 Application Procedures PN.

B. Background of Proceeding

    3. Auction 1000 (including Auctions 1001 and 1002) will be 
conducted pursuant to Title VI of the Middle Class Tax Relief and Job 
Creation Act of 2012 (Spectrum Act), which authorizes incentive 
auctions to help meet the Nation's accelerating spectrum needs and 
requires the Commission to conduct a broadcast television spectrum 
incentive auction. The Incentive Auction R&O, 79 FR 48411, August 15, 
2014, established the framework for Auction 1000, including the 600 MHz 
Band Plan, the repacking of the broadcast television bands, the 
incentive auction process, and the post-incentive auction transition. 
The Commission established final procedures for determining the 
spectrum clearing target and bidding in the reverse and forward 
auctions in the Auction 1000 Bidding Procedures PN. The Auction 1000 
Application Procedures PN, the Prohibited Communications PN, 80 FR 
63125, October 19, 2015, and the Auction 1000 Bidding Procedures PN, 
together establish the final auction procedures for the incentive 
auction. In addition to the Incentive Auction R&O and these procedures 
public notices, the Commission has released a number of other decisions 
in this proceeding regarding the incentive auction and the repacking 
process.
    4. The information and deadlines the Bureau announced in the 
Auction 1000 Application Procedures PN also implement the Commission's 
general competitive bidding rules in part 1, subpart Q of the Code of 
Federal Regulations. The Commission made significant changes to the 
rules applicable to the forward auction in the Part 1 R&O, 80 FR 56764, 
September 18, 2015. Potential bidders in Auction 1000, particularly 
those interested in Auction 1002, also should make themselves familiar 
with the decisions in the Part 1 R&O.

II. Applying To Participate in the Reverse Auction

    5. Licensees of commercial and noncommercial educational (NCE) full 
power and Class A television stations (eligible broadcast licensees) 
identified in the attached Final Baseline (Appendix I of Attachment 2 
in the Public Notice) may apply to participate in the reverse auction. 
On its application, an eligible broadcast licensee will have up to 
three bid options depending on its pre-auction band: (1) Go off-air 
(available to all stations); (2) move to a Low-VHF channel (available 
to UHF or High-VHF stations); and (3) move to a High-VHF channel 
(available only to UHF stations). An applicant that intends to 
relinquish its spectrum usage rights in order to share a channel with a 
station that will remain on the air following the auction will bid to 
go off-air.

A. Applicable Rules and Disclaimers

i. Relevant Authority
    6. Section 6403(a) of the Spectrum Act, codified at 47 U.S.C. 
1452(a), authorizes the reverse auction to determine the amount of 
compensation that each eligible broadcast licensee would accept in 
return for voluntarily relinquishing some or all of its broadcast 
television spectrum usage rights. In the Incentive Auction R&O, the 
Commission adopted rules and policies for the reverse auction. More 
recently, the Commission developed detailed bidding procedures 
necessary to govern the reverse auction process in the Auction 1000 
Bidding Procedures PN.
    7. Prospective applicants must familiarize themselves thoroughly 
with the Commission's competitive bidding rules for the reverse 
auction. As many of the reverse auction pre-auction procedures and 
application requirements are substantially similar to the Commission's 
procedures and requirements for typical spectrum license auctions, 
prospective reverse auction applicants should also familiarize 
themselves with the Commission's decisions in proceedings regarding its 
general competitive bidding procedures and application requirements. 
Prospective bidders should also familiarize themselves with the 
Commission's rules relating to channel sharing, media ownership, post-
incentive auction licensing and operation, and rules relating to 
applications, environmental review, practice and procedure. All bidders 
must also be thoroughly familiar with the procedures, terms and 
conditions contained in the Incentive Auction R&O, the Auction 1000 
Bidding Procedures PN, the Prohibited Communications PN, the Auction 
1000 Application Procedures PN, other public notices and/or decisions 
in this proceeding, and any future public notices and/or decisions that 
may be issued in this proceeding, as well as any other relevant public 
notices and/or decisions issued by the Commission relating to the 
incentive auction.
    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 its public notices at any time, 
and will issue public notices to convey new or supplemental information 
to applicants. It is the responsibility of all applicants to remain 
current with all

[[Page 66431]]

Commission rules and with all public notices pertaining to this 
auction. Copies of incentive auction-related Commission documents, 
including public notices, can be retrieved from the Auction 1000 Web 
site at https://www.fcc.gov/auctions/1000. Additionally, documents are 
available at the FCC's headquarters located at 445 12th Street SW., 
Washington, DC 20554 during normal business hours.
ii. Due Diligence
    9. 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 bid(s) it submits in 
the reverse auction. An applicant should perform its due diligence 
research and analysis before applying to participate in the reverse 
auction, as it would with any business decision. Each reverse auction 
bidder in Auction 1001 should continue its research and analysis 
throughout the auction. In particular, the Bureau strongly encourages 
each potential bidder to review all Commission orders and public 
notices establishing rules and policies for the incentive auction. 
Additionally, each potential bidder should perform technical analyses 
to assure itself that, should the Commission accept its bid to 
relinquish spectrum usage rights, the bidder will be able to relocate, 
build, and operate its facilities, if applicable, in compliance with 
all applicable technical and regulatory requirements. The Bureau also 
strongly encourages each applicant to keep apprised of pending 
administrative or judicial proceedings, including enforcement 
proceedings and non-final license validity proceedings or downgrade 
orders that might affect its decision to offer a particular station in 
the auction. In addition, applicants should be aware that future 
administrative or judicial proceedings may affect broadcast television 
stations generally or individually.
    10. The due diligence considerations mentioned in the Auction 1000 
Application Procedures PN does not comprise an exhaustive list of steps 
that should be undertaken prior to participating in this auction. As in 
past spectrum license auctions, the burden is on the potential bidder 
to determine how much research to undertake, depending upon specific 
facts and circumstances related to its interests, and to undertake its 
own assessment of the relevance and importance of information gathered 
as part of its due diligence efforts. In addition, each reverse auction 
applicant will be required to acknowledge that it accepts 
responsibility for its bids and will not attempt to place 
responsibility for its bids on either the Commission or the information 
provided by third parties as part of the Commission's extensive 
outreach and education efforts. An auction applicant's failure to 
include these or any other required certifications in its auction 
application by the applicable filing deadline would render its 
application unacceptable for filing, and its application would be 
dismissed with prejudice.
iii. Red Light Rule
    11. The Commission's rules, including a provision referred to as 
the ``red light rule,'' implement the Commission's obligation under the 
Debt Collection Improvement Act of 1996 to aggressively collect debts 
owed to the Commission. Under the red light rule, the Commission will 
not process applications and other requests for benefits by parties 
that owe non-tax debt to the Commission. Absent payment or waiver of 
the red light rule, eligible broadcast licensees that owe debt to the 
Commission would not be permitted to participate in the reverse 
auction.
    12. Robust broadcaster participation is critical to the success of 
the incentive auction. Recognizing that, the Commission expressly 
committed to removing barriers to encourage broadcasters to participate 
in the reverse auction. Consistent with that commitment, in order to 
encourage broadcaster participation in the reverse auction, the Bureau 
waives the red light rule for the limited purpose of permitting any 
eligible broadcast licensee that is red lighted for debt owed to the 
Commission at the time it submits a reverse auction application to 
participate in the reverse auction, subject to certain conditions. 
Additionally, the Bureau recognizes that a reverse auction applicant 
may incur debt to the Commission after submission of its application, 
and may fail to pay the debt when due. Accordingly, in order to 
participate in the auction, each reverse auction applicant will be 
required to certify in its application that it (1) acknowledges its 
liability to the Commission for any debt owed to the Commission that 
the applicant incurred before, or that it may incur after, the reverse 
auction application deadline, including all accrued interest, penalties 
and costs, and that the debt will continue to accrue interest, 
penalties and costs until paid; and (2) agrees that the Commission may 
pay all debt owed by the applicant to the Commission from the 
applicant's share of auction proceeds. As noted by the Bureau, this 
waiver is limited. It does not waive or otherwise affect the 
Commission's right or obligation to collect any debt owed to the 
Commission by an eligible broadcast licensee by any means available to 
the Commission, including set off, referral of debt to the United 
States Treasury for collection and/or red lighting other applications 
or requests for benefits filed by an eligible broadcast licensee.
    13. The Bureau will also require each reverse auction applicant to 
certify its agreement that if an appeal of, or request for waiver or 
compromise of, any debt owed by the applicant to the Commission is 
pending at the conclusion of the incentive auction, the Commission may 
withhold so much of the applicant's share of the auction proceeds as is 
necessary to pay the debt in full, including accrued interest, 
penalties and costs, until issuance of a final non-appealable decision 
regarding the debt or waiver or compromise request, and may then pay 
the debt from the applicant's withheld share. Auction funds held to pay 
such debt will be held in accordance with the provisions of paragraph 
48 of the Auction 1000 Application Procedures PN.
    14. The Bureau advises potential applicants to review their own 
records as well as the Commission's Red Light Display system to 
determine whether they owe non-tax debt to the Commission, and to do so 
periodically during the incentive auction. The Bureau also encourages 
eligible broadcast licensees to resolve and pay all outstanding debts 
to the Commission as soon as possible to avoid the accrual of interest, 
penalties and costs on unpaid debt.
iv. Use of Auction System
    15. Bidders will be able to participate in Auction 1001 over the 
Internet using the Commission's bidding system (Auction System). The 
Commission makes no warranty whatsoever with respect to the 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 
Auction System. Moreover, no obligation or liability will arise out of 
the Commission's technical, programming, or other advice or service 
provided in connection with the Auction System.
v. Fraud Alert
    16. As is the case with many business opportunities, some 
unscrupulous

[[Page 66432]]

parties may attempt to use Auction 1001 to deceive and defraud 
unsuspecting eligible broadcast licensees. Every eligible broadcast 
licensee is responsible for monitoring whether any applications have 
been filed for its license(s) in order to assure that only authorized 
applications are filed. All licensees of eligible facilities recently 
completed a Form 2100 Schedule 381 Pre-Auction Technical Certification 
for each eligible facility using the Commission's new Licensing and 
Management System (LMS). At that time, if that licensee had more than 
one FCC Registration Number (FRN) associated with the eligible 
facility, LMS required the licensee to choose one FRN and one related 
password to associate with that facility. Individuals in possession of 
this FRN and the related password will be able to file an application 
to participate in the reverse auction on behalf of the licensee. 
Therefore, the Bureau urges all licensees to maintain the integrity of 
their FRN and related password by regularly changing their password, 
and to monitor the auction filing system to assure that no unauthorized 
filings are made. Because the Bureau will keep the identity of all 
reverse auction participants confidential, the licensee must review the 
auction filing system to become aware of fraudulent or unauthorized 
reverse auction filings rather than relying on review of a publicly 
released list of participants. Licensees that become aware of an 
unauthorized filing should notify the Commission immediately in writing 
by email to auction1001@fcc.gov.

B. Auction Specifics

i. Auction Title and Start Date
    17. The reverse portion of the incentive auction will be referred 
to as ``Auction 1001--Broadcast Television Spectrum Incentive Reverse 
Auction.'' The incentive auction will begin on March 29, 2016, with the 
deadline for reverse auction applicants to commit to an initial bid 
option in Auction 1001.
    18. Reverse auction bidders will be informed of the initial 
schedule of bidding rounds, including the time each round will start 
and finish and the number of rounds per day, when they are informed 
that they are qualified to bid.
ii. Auction 1001 Dates and Deadlines
    19. The following dates and deadlines apply: (1) The pre-auction 
process tutorial will be available (via Internet) on November 17, 2015; 
(2) the reverse auction application (FCC Form 177) filing window opens 
on December 1, 2015 (12:00 noon ET); (3) the reverse auction 
application (FCC Form 177) filing window deadline is on December 18, 
2015 (6:00 p.m. ET); (4) the bidding and post-auction process tutorial 
will be available (via Internet) on February 29, 2016; (5) the initial 
commitment deadline is on March 29, 2016 (6:00 p.m. ET); (6) the 
initial clearing target and band plan will be announced three to four 
weeks after the initial commitment deadline; (7) the specific date for 
the mock auction(s) will be provided to each applicant that is 
qualified to bid by confidential status letter after the initial 
clearing target is announced; and (8) the specific date for which 
bidding in the clock round will begin will be provided to each 
applicant that is qualified to bid by confidential status letter after 
the initial clearing target is announced.
iii. Requirements for Qualifying To Bid
    20. Eligible broadcast licensees wishing to qualify to bid in the 
clock rounds of Auction 1000 must: (1) Submit an auction application 
(FCC Form 177) electronically prior to 6:00 p.m. ET, on December 18, 
2015, following the electronic filing instructions that will be 
provided in a separate public notice to be released in the near future 
(FCC Form 177 Instructions); (2) Make an initial commitment prior to 
6:00 p.m. ET, on March 29, 2016, following the procedures and 
instructions that will be set forth in the FCC Form 177 Instructions; 
and (3) Comply with all provisions outlined in the Auction 1000 
Application Procedures PN, the Auction 1000 Bidding Procedures PN, the 
Incentive Auction R&O, and other applicable Commission rules and 
policies.
iv. Auction Delay, Suspension, or Cancellation
    21. By public notice or by announcement during the reverse auction, 
the auction may be delayed, suspended, or cancelled in the event of a 
natural disaster, technical obstacle, network disruption, evidence of 
an auction security breach or unlawful bidding activity, administrative 
or weather necessity, or for any other reason that affects the fair and 
efficient conduct of the competitive bidding. In such cases, the 
Bureau, in its sole discretion, may elect to resume the competitive 
bidding starting from the beginning of the current or from some 
previous round or cancel the competitive bidding in its entirety. The 
Bureau emphasizes that it will exercise this authority solely at its 
discretion.

C. Reverse Auction Application (FCC Form 177)

    22. The applicant to participate in the reverse auction (Auction 
1001) must be the broadcast television licensee that holds the spectrum 
usage rights being offered for relinquishment. A licensee that holds 
licenses for multiple eligible stations that it wishes to offer in the 
auction may include all of its eligible stations in a single 
application, as long as it identifies each such station and provides 
the required information for each. The application to participate in 
Auction 1001 is referred to as FCC Form 177 and provides information 
used to determine whether the applicant is legally qualified to 
participate in the reverse auction to relinquish some or all of its 
spectrum usage rights in exchange for a portion of the incentive 
auction proceeds. Submitting an FCC Form 177 is the first of two steps 
in the Commission's process to qualify to bid in the reverse auction.
    23. Each licensee seeking to relinquish spectrum usage rights in 
Auction 1001 must file an auction application electronically via the 
Auction System prior to 6:00 p.m. ET on December 18, 2015, following 
the procedures that will be provided in the FCC Form 177 Instructions. 
All eligible broadcast licensees, including reverse auction applicants, 
are subject to the Commission's rules prohibiting certain 
communications beginning at the deadline for filing.
    24. Applicants bear full responsibility for submitting accurate, 
complete and timely reverse auction applications. Each applicant must 
make a series of certifications under penalty of perjury on its FCC 
Form 177 related to the information provided in its application and its 
participation in the auction, and must confirm that it is in compliance 
with all statutory and regulatory requirements for participation in the 
reverse auction, including any requirements with respect to stations 
identified in the auction application.
    25. An applicant submitting an application in Auction 1001 to 
relinquish spectrum usage rights for a Class A or NCE television 
station must submit additional information about the relevant license. 
Specifically, if the license is for a Class A television station, the 
applicant must certify under penalty of perjury that it is and will 
remain in compliance with the ongoing statutory eligibility 
requirements to remain a Class A station. If the license is for an NCE 
station, the applicant must specify whether it operates on a reserved 
or non-reserved channel.

[[Page 66433]]

    26. The submission of an FCC Form 177 (and any amendments thereto) 
constitutes a representation by the individual certifying the 
application that he or she is authorized to do so on behalf 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. If the 
individual certifying the FCC Form 177 is not an officer, director, 
board member, or controlling interest holder of the applicant, the 
applicant must be able to provide evidence that such individual has the 
authority to bind the applicant. Submission of any false 
certification(s) to the Commission may result in penalties, including 
monetary forfeitures, license forfeitures, denial or dismissal of 
applications with respect to Auction 1001, ineligibility to participate 
in future auctions, and/or criminal prosecution.
    27. In the following sections, the Bureau discusses additional 
details regarding certain information required to be submitted in the 
FCC Form 177. However, each applicant should read carefully the 
forthcoming FCC Form 177 Instructions and consult the Commission's 
rules to ensure that, in addition to the materials discussed in the 
Public Notice, all the information required to be submitted in an 
auction application is included within its application.
i. Authorized Bidders
    28. As part of the auction application, the applicant must identify 
at least one, but no more than three, person(s) authorized to place 
bids in the auction. There may be circumstances in which reverse 
auction applicants might share the same authorized bidder. The 
individual submitting the application must certify that the applicant 
agrees that any bid submitted is an irrevocable, binding offer by the 
applicant to relinquish the relevant spectrum usage rights at the 
offered price.
ii. Identifying Relinquishment Bid Option(s) for Each Eligible Facility
    29. Background. Eligible broadcast licensees may bid to voluntarily 
relinquish the spectrum usage rights associated with station facilities 
identified in the attached Final Baseline. A station may be included in 
the Final Baseline notwithstanding that its license has been cancelled, 
has expired, is subject to a revocation order (collectively, a license 
validity proceeding) or, for a Class A station, is subject to a 
downgrade order. Such a station will no longer be eligible to be 
offered for relinquishment in the reverse auction, however, if that 
license validity proceeding or downgrade becomes final and non-
reviewable by December 18, 2015. An eligible broadcast licensee may 
offer to relinquish the spectrum usage rights associated with a station 
subject to a license validity proceeding or Class A downgrade order 
that has not become final and non-reviewable by that deadline subject 
to certain conditions.
    30. Application Procedures. For each station that the applicant 
includes on its application, the applicant must identify one or more 
bid options, corresponding to the relinquishment options that the 
applicant wishes to be able to consider for that station in the reverse 
auction. The bid options are described in the preceding section and in 
more detail in the Auction 1000 Bidding Procedures PN.
    31. An applicant has no obligation to bid for the options it 
identifies in its application; if the applicant plans to bid in the 
clock rounds, it will need to commit to one of its identified bid 
options prior to the deadline to submit an initial commitment. However, 
an applicant should take care when selecting bid options in its auction 
application. As determined in the Auction 1000 Bidding Procedures PN, 
if an applicant does not identify a particular bid option for a 
specific station on its auction application, that applicant will not be 
able to bid for that option for that station, either in making its 
initial commitment or in the clock bidding rounds. An applicant wishing 
to preserve flexibility to bid for all options in the auction should 
select all options available to each station.
iii. Ownership Disclosure Requirements
    32. Each applicant must comply with the applicable Part 1 ownership 
disclosure standards and provide information required by 47 CFR 1.2204 
and 1.2112(a). Specifically, in completing the FCC Form 177, 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 1.2112. Each applicant is 
responsible for ensuring that information submitted in its application 
is complete and accurate.
    33. In certain circumstances, an applicant's most current ownership 
information on file with the Commission, if in an electronic format 
compatible with the FCC Form 177 (such as information submitted in an 
FCC Form 175 filed from a previous auction) will automatically be 
entered into the applicant's auction application. Each applicant must 
carefully review any information automatically entered in its FCC Form 
177 to confirm that all information supplied on the application is 
complete and accurate as of the application filing deadline. The FCC 
Form 323 is not compatible with the FCC Form 177; therefore, 
information provided to the Commission on that form will not be 
automatically entered into an applicant's auction application.
    34. Among other information, applicants must supply identifying 
information about the applicant, including the applicant's name and 
address, if the applicant is an individual; the name and address of the 
corporate office and the name and title of an officer or director if 
the applicant is a corporation; the name, citizenship, and address of 
all general partners, and, if a general partner is not a natural 
person, then the name and title of a responsible person for that 
partner, if the applicant is a partnership; the name and address of the 
trustee, if the applicant is a trust; and if the applicant is none of 
the above, it must identify and describe itself and its principals or 
other responsible persons. Additionally, for non-profit entities, 
applicants must list the name, address, and citizenship of each member 
of the governing board and of any educational institution or 
governmental entity with a controlling interest in the applicant, if 
applicable.
iv. National Security Certification
    35. Section 6004 of the Spectrum Act, codified at 47 U.S.C. 1404, 
prohibits a person who has been, for reasons of national security, 
barred by any agency of the Federal Government from bidding on a 
contract, participating in an auction, or receiving a grant from 
participating in any auction that is required or authorized to be 
conducted pursuant to the Spectrum Act. In the Incentive Auction R&O, 
the Commission adopted a rule to implement this mandate by adding a 
certification to the various other certifications that a reverse 
auction applicant must make in its application. Pursuant to this rule, 
any applicant seeking to participate in Auction 1001 must certify in 
its FCC Form 177, under penalty of perjury, that the applicant and all 
of the related individuals and entities required to be disclosed on its 
application are not person(s) who have been, for reasons of national 
security, barred by any agency of the Federal Government from bidding 
on a contract, participating in an auction, or receiving a grant, and 
who are thus statutorily prohibited from participating in such a 
Commission auction.

[[Page 66434]]

v. Additional Information and Certifications Required From Applicants 
Intending to Channel Share
    36. Background. The Commission adopted rules and procedures 
concerning channel sharing arrangements in the Channel Sharing R&O, the 
Incentive Auction R&O, and the First Order on Reconsideration. An 
eligible broadcast licensee interested in entering into a channel 
sharing arrangement should familiarize itself with those orders and the 
requirements adopted therein, as well as any future orders or public 
notices concerning channel sharing.
    37. Under the Commission's rules, a reverse auction bidder that is 
interested in relinquishing its spectrum usage rights on its current 
channel in order to share another licensee's channel following the 
auction, and that has entered into a channel sharing agreement (CSA) 
before the reverse auction application filing deadline (pre-auction 
CSA), must submit an executed copy of the CSA with its auction 
application. Applicants who have entered into a pre-auction CSA must 
also make several certifications under penalty of perjury. The rules 
also provide that an applicant that executes a pre-auction CSA and 
submits a copy of the executed agreement with its auction application 
will be covered under a limited exception to the rule prohibiting 
communications regarding bids and bidding strategies during the period 
defined by the rule. This exception will allow the applicant to discuss 
bids and bidding strategies with the other party or parties to the pre-
auction CSA to the extent covered by this exception, subject to the 
limitations outlined in the Prohibited Communications PN. As discussed 
in the Prohibited Communications PN, applicants may choose not to avail 
themselves of the exception in order to protect against rule 
violations. Applicants will be able to provide information with their 
applications regarding relevant firewalls or other safeguards 
established to protect against rule violations, although there is no 
requirement that they do so.
    38. Additionally the Commission's rules allow winning reverse 
auction bidders that relinquish their spectrum usage rights in the 
reverse auction to enter into CSAs after the completion of the 
incentive auction (post-auction CSAs), provided that they (1) Indicate 
in their pre-auction applications that they have a present intent to 
find a channel sharing partner after the auction (the expression of 
present intent will not bind an applicant to seek out a channel sharing 
partner or enter into a post-auction CSA); and (2) execute and 
implement their post-auction CSAs by the date on which they would 
otherwise be required to relinquish their licenses. The channel sharing 
exception to the rule prohibiting certain communications will not cover 
applicants that indicate their present intent to enter into a post-
auction CSA and do not submit a pre-auction CSA.
    39. Application Requirements. A channel ``sharee'' applicant that 
intends to relinquish spectrum usage rights in order to share another 
station's channel post-auction will be required to indicate on its 
auction application whether it has entered into a CSA prior to the 
reverse auction application filing deadline, and/or has a present 
intent to enter into a CSA after the conclusion of the incentive 
auction and release of the Channel Reassignment PN. An applicant that 
indicates it has entered into a pre-auction CSA must identify on its 
auction application the parties to the CSA, including the sharer or 
host station, any other sharee(s), and the television channel the 
applicant has agreed to share. An applicant that submits an executed 
CSA may also express an intention to enter into a CSA after the 
conclusion of the incentive auction. Doing so could allow the licensee 
to seek a different channel sharing partner following the auction.
    40. An applicant submitting a copy of an executed CSA with its 
auction application should not redact any portion of the agreement. 
Unless required by law, the Commission will keep the copy of the 
executed CSA submitted with the auction application from being made 
public, even if such an applicant becomes a winning bidder. Winning 
reverse auction channel sharing bidders will be required to include a 
copy of their CSA with their post-auction construction permit 
application (LMS Form 2100--Schedules A and E), which will be publicly 
available, and the Bureau will allow applicants to redact confidential 
or proprietary terms for the purposes of that submission.
    a. Channel Sharing Certifications
    41. An applicant with a pre-auction CSA will be required to certify 
under penalty of perjury that: (1) The CSA is consistent with all 
Commission rules and policies, and that the applicant accepts any risk 
that the implementation of the CSA may not be feasible for any reason, 
including any conflict with requirements for operation on the shared 
channel; (2) the proposed channel sharing arrangement will not trigger 
a new combination that violates the multiple ownership rules, set forth 
in 47 CFR 73.3555 based on facts at the time the application is 
submitted; (3) its operation from the shared channel facilities will 
not result in a change to its Designated Market Area; and (4) it can 
meet the community of license coverage requirement set forth in 47 CFR 
73.625(a) from the shared channel facilities or, if not, that the new 
community of license for its shared channel facilities either meets the 
same or a higher allotment priority as its current community; or, if no 
community meets the same or higher allotment priority, provides the 
next highest priority. With respect to certification (2), a sharee must 
include a showing of compliance with the multiple ownership rules in 
its construction permit application if operation from the shared site 
triggers a new multiple ownership combination that is subject to those 
rules regardless of whether an arrangement is entered into pre- or 
post-auction. For pre-auction arrangements, the showing must be based 
on the facts at the time the sharee filed its application to 
participate in the reverse auction. For post-auction arrangements, the 
showing must be based on the facts as of the filing of the construction 
permit application.
    42. A prospective sharer station under a pre-auction CSA need not 
submit an application to participate in the reverse auction unless it 
intends to participate in bidding to offer some or all of its spectrum 
usage rights for relinquishment. Examples of this would be where a 
sharer with a UHF channel bids to move to the VHF band, or a CSA in 
which the sharee is defined as the party that becomes the provisionally 
winning station first during the bidding rounds. However, it must make 
the first two certifications listed in the immediately preceding 
paragraph. Additionally, if the sharer is a Class A station it must 
certify under penalty of perjury that it is and will remain in 
compliance with the ongoing statutory eligibility requirements to 
remain a Class A station. Also, a sharer station must certify that the 
CSA submitted by the reverse auction applicant is a true, correct, and 
complete copy of the CSA between the parties. The FCC Form 177 
Instructions will provide a form with the required certifications that 
a sharer must sign and give to the sharee(s) to upload into the 
sharee(s)'s auction application.
    43. The channel sharing certifications must be made by persons 
authorized to bind the sharee and sharer, respectively. The Bureau 
notes that the person who makes the channel sharing certifications for 
the sharee may be a different person than the person who makes all 
other

[[Page 66435]]

required certifications in the sharee's reverse auction application.
vi. Provisions Regarding Pending Proceedings
    44. Background. The Commission determined that eligible broadcast 
licensees with pending enforcement matters or license renewal 
applications that raise enforcement issues whose bids may result in 
their holding no broadcast licenses, as well as eligible broadcast 
licensees of facilities subject to a non-final license validity 
proceeding or downgrade order, may participate in the reverse auction 
subject to any incentive payment being held until the pending 
proceedings are finally resolved. This section describes the additional 
information that such licensees must provide on their reverse auction 
applications and the process by which the Commission will hold their 
incentive payments pending resolution of these types of proceedings.
    45. Application Procedures. Each applicant that selects going off-
air as a bidding option for a station must indicate on its auction 
application whether or not it will hold any other broadcast licenses in 
the event that all of the bids that it might place to go off-air are 
accepted. If it will hold another broadcast license in such an event, 
then the applicant must certify that the applicant will remain subject 
to any license renewal, as well as any enforcement action, pending at 
the time of the auction application deadline against the station that 
may go off-air as a result of the auction. If it will not hold any 
other broadcast licenses in such an event, then the applicant must 
certify its agreement (1) That pursuant to the Commission's announced 
procedures for resolving such matters in connection with this auction, 
the Commission may withhold a portion of the share of auction proceeds 
for the station, if any, pending final determination of any FCC 
liabilities with respect to the station and such portion may be applied 
towards the satisfaction of such liabilities; and (2) that the 
applicant remains subject to the Commission's jurisdiction and 
authority to impose enforcement or other FCC liabilities with respect 
to the station, notwithstanding the surrender of its license for the 
station.
    46. Each applicant must also indicate for each license identified 
in its application whether the license is subject: (1) To a non-final 
revocation order; or (2) has expired or been cancelled and is subject 
to a non-final license cancellation order. If such an order becomes 
final and non-reviewable before the deadline for filing, the former 
licensee is not eligible to participate. Likewise, an applicant that 
includes a Class A television station in its application must indicate 
whether that station is subject to a non-final downgrade order. If such 
a downgrade order becomes final before the deadline for filing, the 
licensee is no longer eligible to participate. An applicant that 
indicates that a license in its application is subject to any of the 
foregoing revocation, cancellation, or downgrade proceedings must 
certify in its application that it agrees with the Commission's 
announced procedures to withhold all of any incentive payment for the 
station pending the final outcome of the proceeding.
    47. In the confidential letter informing an applicant of the 
initial status of its auction application, the Wireless 
Telecommunications and Media Bureaus (collectively, the Bureaus) will 
inform the applicant of any potential FCC liabilities with respect to a 
particular station that cannot be resolved before the initial 
commitment deadline. In addition, the Bureaus will indicate the amount 
of auction proceeds that the Commission will withhold should the 
applicant relinquish its license(s) as a result of the auction and 
therefore otherwise no longer be subject to the Commission's 
jurisdiction. The amount withheld will represent the maximum necessary 
to cover a potential forfeiture based on enforcement matters existing 
at that time. This process ensures that the applicant will be aware of 
any withholding before making an initial commitment to relinquish its 
spectrum usage rights. The applicant's certifications ensure that an 
applicant whose stations may go off-air as a result of the auction will 
not thereby avoid any liability to the public and owed to the 
Commission.
    48. All auction proceeds held (1) To cover potential enforcement 
liabilities, (2) because of an ongoing license validity or downgrade 
proceeding, or (3) until final resolution of an appeal of a debt 
determination or a compromise or waiver request will be held by the 
Commission in the U.S. Treasury. As determined by the Commission in the 
Incentive Auction R&O, amounts held following the auction will be 
released to the broadcaster or applied towards any forfeiture costs and 
other debt the broadcaster owes to the Commission, as appropriate in 
light of the final resolution of the relevant issues. This procedure is 
consistent with the Commission's reverse auction competitive bidding 
rules and with its proposal in the Auction 1000 Comment PN that auction 
proceeds be held in the U.S. Treasury pending resolution of outstanding 
enforcement proceedings, license renewal proceedings, or other 
potential eligibility impediments.
vii. Modifications to FCC Form 177
a. Only Minor Modifications Allowed
    49. After the initial FCC Form 177 filing deadline, an Auction 1001 
applicant will be permitted to make only minor changes to its 
application. Examples of minor changes include the deletion or addition 
of authorized bidders (to a maximum of three), revision of addresses 
and telephone numbers of the applicant, its responsible party, and its 
contact person, and change in the applicant's selected bidding 
preference (electronic or telephonic). Major modification to an FCC 
Form 177 (e.g., add or remove a license identified for relinquishment, 
change of relinquishment option for a particular license, certain 
changes in ownership that would constitute an assignment or transfer of 
control of the applicant, change any of the required certifications, 
change the certifying official, add a new CSA or change a party to a 
CSA, change in applicant's legal classification that results in a 
change in control) will not be permitted after the initial FCC Form 177 
filing deadline. If an amendment reporting changes is a ``major 
amendment,'' as defined in 47 CFR 1.2204(d)(3), the major amendment 
will not be accepted and may result in the dismissal of the 
application.
b. Duty To Maintain Accuracy and Completeness of FCC Form 177
    50. Pursuant to 47 CFR 1.65 and 1.2204(d)(5) each applicant has a 
continuing obligation to maintain the accuracy and completeness of 
information furnished in a pending application, including a pending 
application to participate in the reverse auction. An Auction 1001 
applicant must furnish additional or corrected information to the 
Commission within five days after a significant occurrence, or amend 
its FCC Form 177 no more than five days after the applicant becomes 
aware of the need for the amendment. An applicant's obligation to make 
modifications to a pending application in order to provide additional 
or corrected information continues in accordance with the Commission's 
rules. An applicant is obligated to amend its pending application even 
if a reported change is considered to be a major modification that may 
result in the dismissal of the application.

[[Page 66436]]

c. Submitting Modifications to FCC Form 177
    51. If an applicant needs to make permissible minor changes to its 
FCC Form 177, or must make changes in order to maintain the accuracy 
and completeness of its application pursuant to 47 CFR 1.65 and 
1.2204(d)(5), during a time when the system is available to the 
applicant for purposes of making the type of change(s) required, such 
changes should be made electronically to its FCC Form 177 using the 
Auction System. For the change to be submitted and considered by the 
Commission, an applicant must 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.
    52. An applicant cannot use the Auction System outside of the 
initial and resubmission filing windows to make changes to its FCC Form 
177 for other than administrative changes (e.g., changing responsible 
party or contact person name and related information, adding or 
deleting an authorized bidder). If other permissible minor changes need 
to be made, or if changes are required pursuant to 47 CFR 1.65 and 
1.2204(d)(5), outside of these windows, the applicant must submit a 
letter briefly summarizing the changes to its FCC Form 177 by email to 
auction1001@fcc.gov. The email summarizing the changes must include a 
subject or caption referring to Auction 1001 and the name of the 
applicant, for example, ``Re: Changes to Auction 1001 Auction 
Application of XYZ Corp.'' Any attachments to email must be formatted 
as Adobe[supreg] Acrobat[supreg] (PDF) or Microsoft[supreg] Word 
documents. Questions about FCC Form 177 amendments should be directed 
to the Auctions and Spectrum Access Division at (202) 418-0660. An 
applicant that submits its changes in this manner must subsequently 
update its FCC Form 177 in the Auction System once it is open and 
available to applicants. Moreover, after the initial filing window has 
closed, the Auction System will not permit an applicant to make certain 
permissible changes itself (e.g., correcting a misstatement of the 
applicant's legal classification). This is the case because certain 
fields on the FCC Form 177 will no longer be available to, or 
changeable by, the applicant after the initial application filing 
window closes. If an applicant needs to make a permissible minor change 
that cannot be made using the Auction System, it must submit a written 
request by email to auction1001@fcc.gov requesting that the Commission 
manually make the change on the applicant's behalf. The applicant must 
then recertify its application by clicking on the SUBMIT button to 
confirm the change.
    53. As with the FCC Form 177, any application amendment and related 
statements of fact must be certified by an authorized representative of 
the applicant with authority to bind the applicant. Applicants should 
note that submission of any such amendment or related statement of fact 
constitutes a representation by the person certifying that he or she is 
an authorized representative with such authority, and that the contents 
of the amendment or statement of fact are true and correct.
    54. Applicants must not submit application-specific material 
through the Commission's Electronic Comment Filing System. Further, as 
discussed in the Auction 1000 Prohibited Communications PN, 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 
1.2205. A party seeking to submit, outside of the Auction System, 
information that might reflect non-public information, such as a 
party's decision to submit an application, any applicant's name, or any 
other information identifying a reverse auction applicant, 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 1.2205.

D. Auction 1001 Process

i. Online Auction Tutorials and Training
    55. Prior to the deadline to apply to participate in the reverse 
auction, the Commission will provide, in various formats, detailed 
educational information to would-be participants and channel sharers. 
Among other things, the Commission will hold workshops/webinars 
addressing the reverse auction application and bidding processes. In 
addition, Commission staff will provide two auction tutorials for 
prospective bidders to walk through the auction process and the 
application and bidding screens. The first auction tutorial will focus 
on the application process and the second tutorial will focus on the 
bidding process. These online tutorials will provide information about 
pre-auction procedures, completing reverse auction applications, 
auction conduct, the auction bidding system, and auction rules. The 
application tutorial will be available on the Auction 1001 Web page no 
later than November 17, 2015, and the bidding process tutorial will be 
available no later than February 29, 2016.
    56. Based on the Bureau's experience with past auctions, parties 
interested in participating in this auction will find the interactive, 
online tutorials an efficient and effective way to further their 
understanding of the auction process. The tutorials 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, and screen shots of 
the online application and bidding system. The tutorials will be 
accessible through a web browser with Adobe Flash Player.
    57. The auction tutorials will be accessible from the Commission's 
Auction 1001 Web page at https://www.fcc.gov/auctions/1001 through an 
``Auction Tutorial'' link under the ``Education'' tab. Once posted, 
these tutorials will remain available and accessible anytime for 
reference in connection with the procedures outlined in Auction 1000 
Application Procedures PN.
ii. FCC Form 177--Due Prior to 6:00 p.m. ET on December 18, 2015
    58. As the first step to qualify to bid in the clock rounds of the 
reverse auction, an applicant must follow the procedures provided in 
the forthcoming FCC Form 177 Instructions to submit an application to 
participate in the reverse auction (FCC Form 177) electronically via 
the Auction System.
    59. An applicant may file its application to participate in Auction 
1001 during the filing window that will open at noon ET on December 1, 
2015, and close at 6:00 p.m. ET on December 18, 2015. The application 
must be submitted prior to the closing of the filing window. Late 
applications will not be accepted. No application fee is required. The 
Bureau strongly encourages applicants to file early. Potential 
applicants are responsible for allowing adequate time for filing their 
applications. There are no limits or restrictions on the number of 
times an application can be updated or amended until the filing 
deadline on December 18, 2015.
    60. An applicant must always click on the SUBMIT button on the 
``Certify &

[[Page 66437]]

Submit'' screen to successfully submit its FCC Form 177 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 177 
will be included in the FCC Form 177 Instructions. 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.
iii. Application Processing
    61. After the deadline for filing reverse auction applications to 
participate, Commission staff will process all timely submitted 
applications to determine whether the application is complete as to 
each station the applicant identified to relinquish spectrum usage 
rights. Subsequently, the Bureau will send confidential letters to the 
contact person listed on the applicant's FCC Form 177 identifying as to 
each station whether the application (1) Is complete, (2) has been 
rejected, or (3) is incomplete or deficient because of minor defects 
that may be corrected. The letter will include the deadline for 
resubmitting corrected applications and will inform the applicant of 
any potential FCC liabilities with respect to a particular station that 
cannot be resolved before the reverse auction. Applicants that fail to 
correct defects in their applications to participate by the deadline 
will have their applications dismissed with no opportunity for 
resubmission.
    62. Applicants will be provided a limited opportunity to cure 
specified defects and to resubmit a corrected application. The Bureau 
cautions, however, that any application to participate that does not 
contain all of the certifications required pursuant to the Commission's 
rules cannot be corrected subsequent to the initial application filing 
deadline, and will be dismissed. During the resubmission period for 
curing defects, an auction application may be amended or modified to 
cure identified defects or to make minor amendments or modifications.
    63. After the resubmission filing deadline, Commission staff will 
determine whether an applicant's resubmitted application is complete as 
to each station the applicant included in the application. The staff 
will send a confidential letter to the contact person listed in the FCC 
Form 177 notifying him or her of the final status of its application to 
participate in the reverse auction with respect to each station in the 
application. If the application is complete for one or more stations, 
the letter will contain information about how to submit an initial 
commitment for those complete stations which is the second step in 
qualifying to bid in the clock rounds of the reverse auction. If the 
application is deemed not complete as to any particular station the 
applicant will be not be able to make an initial commitment for that 
station.
    64. Commission staff will communicate only with an applicant's 
contact person or certifying official, as designated on the auction 
application, unless the applicant's certifying official or contact 
person notifies the Commission in writing that the applicant's counsel 
or other representative is authorized to speak on its behalf. In no 
event, however, will the FCC send auction registration materials to 
anyone other than the contact person listed on the FCC Form 177 or 
respond to a request for replacement registration materials from anyone 
other than the authorized bidder, contact person, or certifying 
official listed on the applicant's FCC Form 177. Authorizations may be 
sent by email to auction1001@fcc.gov.
iv. Initial Commitment
    65. As the second step to qualify to bid in the clock rounds of the 
reverse auction, an applicant that has submitted a timely and complete 
application must commit, at the opening price, to a preferred 
relinquishment option for each station that it intends to bid for in 
the reverse auction prior to 6:00 p.m. ET on March 29, 2016. For each 
station deemed complete, an applicant may only commit to a 
relinquishment option(s) that it identified for that station when 
initially submitting its auction application. An applicant will receive 
instructions on how to submit an initial commitment for such stations 
in the confidential letter that informs the applicant whether the 
station has been deemed complete.
    66. An applicant's initial commitment to a relinquishment option 
constitutes an initial bid, and as such, is an irrevocable offer by the 
applicant to relinquish the relevant spectrum usage rights in exchange 
for the opening price offer for that bid option if that station is 
selected to be a winning station. An applicant that fails to commit to 
an initial relinquishment option for a given station by the deadline 
will not be qualified to bid in the clock rounds of the auction for 
that station. Applicants should carefully review the Auction 1000 
Bidding Procedures PN for further details concerning how the selection 
of a preferred option and a fallback option may affect its bidding 
options in the clock rounds.
    67. Based on the initial commitments, the Auction System will 
determine an initial clearing target for the incentive auction. Once 
the initial clearing target has been determined, the Bureau will send a 
confidential letter to each reverse auction applicant to inform it of 
its status with respect to the clock rounds of the reverse auction. The 
letters will notify the applicant at the contact address provided in 
the Form 177, for each station included in the application, either that 
(1) The station is qualified to participate in the clock rounds of the 
reverse auction; (2) the station is not qualified because no initial 
commitment was made, and therefore, that station will be designated to 
be repacked in its pre-auction band; (3) the commitment(s) made by the 
applicant for the station could not be accommodated, and therefore, 
that station is not qualified and will be designated to be repacked in 
its pre-auction band; or (4) the Auction System determined that the 
station is not needed to meet the initial or any subsequent clearing 
target, and therefore, the station is not qualified and will be 
designated to be repacked in its pre-auction band.
v. Qualified Bidder Registration Materials
    68. All qualified bidders in the reverse auction are automatically 
registered for the auction. The materials needed to participate in the 
clock rounds of the reverse auction will be distributed by overnight 
mail. The mailing will be sent to the contact person at the contact 
address listed in the FCC Form 177 and will include the SecurID[supreg] 
tokens that each authorized bidder will need to place bids, the auction 
system bidder's guide, and the Auction Bidder Line phone number.
    69. Bidders qualified to bid in the reverse auction clock rounds 
that do not receive this registration mailing will not be able to 
submit bids. Therefore, if this mailing is not received by noon on five 
days prior to the mock auction, 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 materials.
    70. 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 
application to participate in the reverse

[[Page 66438]]

auction 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).
vi. Remote Electronic Bidding
    71. The Commission will conduct this auction over the Internet, and 
telephonic bidding will be available as well. All telephone calls are 
recorded. Only qualified bidders are permitted to bid. Each applicant 
should indicate its bidding preference--electronic or telephonic--on 
its FCC Form 177 application. In either case, each authorized bidder 
must have its own designated SecurID[supreg] token, which the 
Commission will provide at no charge. Each authorized bidder will be 
issued a unique SecurID[supreg] token. For security purposes, the 
SecurID[supreg] tokens, the telephonic bidding telephone number, and 
the ``Reverse Auction System Bidder's Guide'' are only mailed to the 
contact person at the contact address listed on the FCC Form 177. Each 
SecurID[supreg] token is tailored to a specific auction and designated 
authorized bidder. SecurID[supreg] tokens issued for other auctions or 
obtained from a source other than the Commission will not work for 
Auction 1001.
vii. Mock Auction
    72. All bidders qualified to bid in the clock rounds will be able 
to participate in a mock reverse auction prior to the start of the 
bidding, which will enable bidders to obtain hands-on experience with 
the Auction System. The mock auction will enable bidders to become 
familiar with the Auction System prior to the auction. The Bureau 
strongly recommends that all bidders participate in the mock auction.
    73. The Bureau anticipates that it will need to conduct at least 
two mock auctions to accommodate the large number of broadcasters that 
it expects will qualify to bid in the reverse auction. In the final 
confidential status letter, each qualified bidder will be notified of 
the date of the mock auction to which it has been assigned.

III. Applying To Participate in the Forward Auction

    74. Auction 1002 will offer new, flexible-use licenses suitable for 
providing mobile broadband services, which will be licensed on a 
geographic area basis according to Partial Economic Areas (PEAs). As 
more fully explained in the Auction 1000 Bidding Procedures PN, Auction 
1002 will consist of two phases--an ascending clock phase and an 
assignment phase.

A. Applicable Rules and Disclaimers

i. Relevant Authority
    75. As more fully explained in the Auction 1000 Bidding Procedures 
PN, the Commission will conduct Auction 1002 pursuant to Title VI of 
the Spectrum Act. Prospective applicants for Auction 1002 must 
familiarize themselves thoroughly with the specific rules and policies 
adopted by the Commission to provide the necessary framework for the 
forward auction, including service rules relating to the 600 MHz Band, 
potential impairments and transition periods affecting the licenses 
offered in the auction, and rules relating to applications, 
environmental review requirements, practice and procedure. Prospective 
applicants must also familiarize themselves with the Spectrum Act, as 
well as the Commission's general competitive bidding rules in part 1, 
subpart Q of the Code of Federal Regulations, Commission decisions in 
proceedings regarding competitive bidding procedures and obligations of 
Commission licensees--particularly the Commission's recent Part 1 R&O--
and with the procedures, terms, and conditions contained in the Auction 
1000 Application Procedures PN, the Auction 1000 Bidding Procedures PN, 
the Auction 1000 Prohibited Communications PN, and any other public 
notices related to Auction 1000, including Auction 1002.
    76. The terms contained in the Commission's rules, relevant orders, 
and public notices are not negotiable. The Commission may amend or 
supplement the information contained in its public notices at any time, 
and will issue public notices to convey any new or supplemental 
information to applicants. It is the responsibility of all applicants 
to remain current with all Commission rules and with all public notices 
pertaining to this auction. Copies of most auction-related Commission 
documents, including public notices, can be retrieved from the FCC 
Auctions Web site at https://wireless.fcc.gov/auctions. Additionally, 
documents are available for public inspection and copying at the FCC's 
headquarters located at 445 12th Street SW., Washington, DC 20554 
during normal business hours.
ii. International Coordination
    77. Potential bidders seeking licenses for geographic areas 
adjacent to the Canadian and Mexican borders should be aware that the 
use of some or all of the 600 MHz Band frequencies they acquire in the 
forward auction are subject to international agreements with Canada and 
Mexico. Potential bidders should be aware that, until such time as any 
new agreements between the United States, Mexico, and/or Canada can be 
made, wireless operations in the 600 MHz Band must not cause harmful 
interference to, and must accept harmful interference from, television 
broadcast operations in Mexico and Canada. As the Commission noted in 
the Incentive Auction R&O, it routinely works with the United States 
Department of State and Canadian and Mexican government officials to 
ensure the efficient use of the spectrum as well as interference-free 
operations in the border areas near Canada and Mexico. The Commission 
has finalized arrangements with Industry Canada (IC) and the Instituto 
Federal de Telecomunicaciones (IFT) that set forth a framework and 
common guidelines for repurposing TV spectrum for mobile broadband on 
both sides of the borders. These arrangements significantly reduce 
potential interference to future wireless operations in the border 
regions and provide assurance that mobile broadband services in the 
border markets will face less potential interference from Canadian or 
Mexican television broadcast stations. Pursuant to joint planning 
between the Commission and Industry Canada, and in light of Industry 
Canada's decision to repurpose the 600 MHz Band, the 138 and 144 
megahertz clearing targets will not be considered in order to better 
harmonize the 600 MHz Band Plan between the two countries.
iii. Quiet Zones
    78. Licensees that intend to operate base and fixed stations in the 
downlink portion of the 600 MHz Band in close proximity to Radio 
Astronomy Observatories must follow the procedures set forth in the 
Commission's rules.
iv. Due Diligence
    79. A Commission spectrum auction represents an opportunity to 
become a Commission licensee, subject to certain conditions and 
regulations. A Commission auction does not constitute an endorsement by 
the Commission of any particular service, technology, or product, and 
the Commission makes no representations or warranties about the use of 
the spectrum offered in Auction 1002 for particular services. A 
Commission license does not constitute a guarantee of business success, 
and each applicant should therefore perform its due diligence research 
and analysis before proceeding, as it would with any new business 
venture, to ensure that any licenses won in this auction will be

[[Page 66439]]

suitable for its business plans and needs.
    80. Each potential bidder is solely responsible for investigating 
and evaluating all legal, technical, and marketplace factors and risks 
associated with the licenses that it is seeking in Auction 1002, 
evaluating the degree to which those factors and risks may have a 
bearing on the value of the licenses and/or affect the bidder's ability 
to bid on, otherwise acquire, or make use of such licenses, and 
conducting any technical analyses necessary to assure itself that, if 
it wins any license(s), it will be able to build and operate facilities 
in accordance with the Commission's rules. Each potential bidder's due 
diligence efforts should include, among other things: (1) Reviewing all 
Commission orders and public notices establishing rules and policies 
for the 600 MHz Band, including but not limited to spectrum use during 
the Post-Auction Transition Period and potential impairments affecting 
certain licenses; (2) conducting research to determine the existence of 
any pending administrative or judicial proceedings, including pending 
allocation rulemaking proceedings, that might affect its decision to 
participate in the auction; (3) performing (or refreshing previous) 
technical analyses; and (4) inspecting any prospective transmitter 
sites located in, or near, the service area for which it plans to bid 
and confirming the availability of such sites and their conformance 
with applicable federal, state, and local land use requirements. Each 
potential bidder must undertake its own assessment of the relevance and 
importance of information gathered as part of its due diligence 
efforts.
    81. Applicants should bear in mind that the due diligence 
considerations mentioned in the Auction 1000 Application Procedures PN 
do not comprise of 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.
    82. The Commission's statutory authority under the Communications 
Act to add, modify and eliminate rules governing spectrum use, as the 
public interest warrants, applies equally to all licenses, whether 
acquired through the competitive bidding process or otherwise. The 
Bureau strongly encourages each participant in Auction 1002 to continue 
such research throughout the auction. Pending and future Commission and 
judicial proceedings--including applications, applications for 
modification, rulemaking proceedings, requests for special temporary 
authority, waiver requests, petitions to deny, petitions for 
reconsideration, informal objections, and applications for review--may 
relate to particular applicants or the licenses available in Auction 
1002 (or the terms and conditions thereof, including all applicable 
Commission rules and regulations), and 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.
v. Use of Auction System
    83. Bidders will be able to participate in Auction 1002 over the 
Internet using the Commission's bidding system (Auction System). The 
Commission makes no warranty whatsoever with respect to the 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 
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 Auction System.
vi. Environmental Review Requirements
    84. 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 Commission's Nationwide Programmatic Agreement 
Regarding the Section 106 National Historic Preservation Act Review 
Process. The licensee must prepare an environmental assessment for any 
facility that may have a significant impact in or on wilderness areas, 
wildlife preserves, threatened or endangered species, designated 
critical habitats, historical or archaeological sites, Native American 
religious sites, floodplains, surface features, or migratory birds. In 
addition, the licensee must prepare an environmental assessment for any 
facility that includes high intensity white lights in residential 
neighborhoods or excessive radio frequency emission.

B. Auction Specifics

i. Auction Title and Start Date
    85. The forward portion of the Incentive Auction will be referred 
to as ``Auction 1002--Broadcast Television Spectrum Incentive Forward 
Auction.'' The clock phase of the initial stage of Auction 1002 will 
begin on the second business day after the close of bidding in the 
reverse auction (Auction 1001), but no sooner than 15 business days 
after the release of a public notice announcing all qualified bidders 
for the forward auction. Unless otherwise announced, bidding on all 
generic spectrum blocks in all PEAs will be conducted on each business 
day until bidding has stopped on all spectrum blocks in all PEAs. 
Following the conclusion of the clock phase in the final stage, the 
Auction System will make available more detailed information about the 
assignment phase (including scheduling information and bidding options) 
to the winning clock phase bidders five business days before starting 
the assignment phase.
ii. Auction 1002 Dates and Deadlines
    86. The following dates and deadlines apply: (1) The pre-auction 
process tutorial will be available (via Internet) on January 7, 2016; 
(2) the forward auction application (FCC Form 175) filing window opens 
on January 14, 2016 (12:00 noon ET); (3) the forward auction 
application (FCC Form 175) filing window deadline is on January 28, 
2016 (6:00 p.m. ET); (4) the bidding and post-auction process tutorial 
will be available (via Internet) on February 29, 2016; (6) the practice 
auction will occur in the spring of 2016; (7) the initial commitment 
deadline is on March 29, 2016 (6:00 p.m. ET); (8) the initial clearing 
target and band plan will be announced three to four weeks after the 
initial commitment deadline; (9) upfront payments (via wire transfer) 
will be due by the deadline announced in the Upfront Payments PN (6:00 
p.m. ET);

[[Page 66440]]

(10) the clock and assignment phase mock auction will be announced in 
the Auction 1002 Qualified Bidders PN; and (11) the clock-phase auction 
will be begin on the date announced in the Auction 1002 Qualified 
Bidders PN.
iii. Requirements for Participation
    87. Those wishing to participate in Auction 1002 must: (1) Submit a 
forward auction application (FCC Form 175) electronically prior to 6:00 
p.m. ET, on January 28, 2016 following the electronic filing 
instructions that will be provided in a separate public notice to be 
released in the near future (FCC Form 175 Instructions); (2) submit a 
sufficient upfront payment by 6:00 p.m. ET, on the deadline to be 
announced in a separate public notice to be released after the initial 
clearing target and associated band plan scenario has been determined 
(Upfront Payment PN); and (3) comply with all provisions outlined in 
the Auction 1000 Bidding Procedures PN and the Auction 1000 Application 
Procedures PN as well as applicable Commission rules and policies.
iv. Auction Delay, Suspension, or Cancellation
    88. By public notice or by announcement during the forward auction, 
the auction may be delayed, suspended, or cancelled in the event of 
natural disaster, technical obstacle, network disruption, evidence of 
an auction security breach or unlawful bidding activity, administrative 
or weather necessity, or for any other reason that affects the fair and 
efficient conduct of the competitive bidding. In such cases, the 
Bureau, in its sole discretion, may elect to resume the competitive 
bidding starting from the beginning of the current round or from some 
previous round or cancel the auction in its entirety. The Bureau 
emphasizes that it will exercise this authority solely at its 
discretion.

C. Forward Auction Application (FCC Form 175)

    89. An application to participate in the forward auction (FCC Form 
175) is the first part of the Commission's two-part auction application 
process for Auction 1002. The FCC Form 175 is a streamlined application 
filed by parties seeking to participate in an auction that provides 
information used by Commission staff to determine whether the applicant 
is legally, technically, and financially qualified to participate in 
Commission auctions for licenses or permits. An applicant's eligibility 
to bid in Auction 1002 is based on the information provided in its FCC 
Form 175 and required certifications as to the applicant's 
qualifications, and on the applicant's submission of a sufficient 
upfront payment. In the second part of the application process for 
Auction 1002, each winning bidder must file a more comprehensive post-
auction application (FCC Form 601) and must have a complete and 
accurate ownership disclosure information report (FCC Form 602) on file 
with the Commission.
    90. Every entity and individual seeking to bid on a license 
available in Auction 1002 must file an FCC Form 175 electronically via 
the Auction System prior to 6:00 p.m. ET on January 28, 2016, following 
the procedures prescribed in the FCC Form 175 Instructions. 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 may request the claimed bidding credit. As more fully 
explained in the Prohibited Communications PN, an applicant that files 
an FCC Form 175 to participate in Auction 1002 will be subject to the 
Commission's prohibited communications rules beginning effective as of 
the application filing deadline.
    91. Applicants bear full responsibility for submitting accurate, 
complete, and timely auction applications. Each applicant must make a 
series of certifications under penalty of perjury on its FCC Form 175 
related to the information provided in its application and its 
participation in the auction, and must confirm that it is legally, 
technically, financially, and otherwise qualified to hold a license. If 
an Auction 1002 applicant fails to make the required certifications in 
its FCC Form 175 by the application filing deadline, its application 
will be unacceptable for filing and cannot be corrected subsequent to 
the filing deadline.
    92. The submission of an FCC Form 175 (and any amendments thereto) 
constitutes a representation by the person certifying the application 
that he or she is an authorized representative of the applicant with 
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 and 
correct. Submission of any false certification(s) to the Commission may 
result in penalties, including monetary forfeitures, license 
forfeitures, ineligibility to participate in future auctions, and/or 
criminal prosecution.
    93. The Commission's rules prohibit the filing of more than one 
auction application by the same individual or entity. An individual or 
entity may therefore not submit more than one application for a single 
auction. If a party submits multiple applications for any license(s) in 
a particular auction, only one of its applications can be found to be 
complete when reviewed for completeness and compliance with the 
Commission's rules. Similarly, and consistent with the Commission's 
general prohibition on joint bidding agreements, an entity is generally 
permitted to participate in a Commission auction only through a single 
bidding entity. Accordingly, the filing of applications by entities 
controlled by the same individual or set of individuals will generally 
not be permitted. This restriction applies across all applications in a 
particular auction, without regard to the licenses or geographic areas 
selected. Section 1.2105(a)(3) provides a limited exception to the 
general prohibition on the filing of multiple applications by commonly-
controlled entities for qualified rural wireless partnerships and 
individual members of such partnerships pursuant to which each 
qualifying rural wireless partnership and its individual members will 
be permitted to participate separately in an auction. 47 CFR 
1.2105(a)(3).
    94. The Bureau discusses additional details regarding certain 
information required to be submitted in the FCC Form 175. However, each 
applicant should read carefully the Auction 1002 application 
instructions and consult the Commission's rules to ensure that all of 
the information required to be submitted in an auction application is 
included within its application.
i. Authorized Bidders
    95. An applicant must designate at least one authorized bidder, and 
no more than three, in its FCC Form 175. The Commission's rules 
prohibit an individual from serving as an authorized bidder for more 
than one auction applicant. Accordingly, the same individual may not be 
listed as an authorized bidder in more than one FCC Form 175.
ii. License Area Selection
    96. An applicant must select all of the PEA(s) on which it may want 
to bid from the list of available PEAs on its FCC Form 175. The 
application will not ask an applicant to select a number of generic 
blocks on which it may wish to bid since the number of blocks available 
in each PEA will not be known at the time applications are due. The 
applicant must carefully review and verify its PEA selections before 
the FCC Form 175 filing deadline because PEA selections cannot be 
changed after the auction application filing deadline. The Auction

[[Page 66441]]

System will not accept bids on PEA(s) that were not selected on the 
applicant's FCC Form 175.
iii. Qualification To Bid on Market-Based Spectrum Reserve
    97. An entity can qualify to bid on reserved spectrum by either (1) 
holding an attributable interest in less than 45 megahertz of below-1-
GHz spectrum in a given PEA; or (2) being a non-nationwide provider. 
The attribution criteria set forth in 47 CFR 20.22 govern qualification 
to bid on the spectrum reserve under either of the two prongs. To 
qualify to bid on reserved licenses in a PEA under the first prong, an 
entity must not have an attributable interest on a population-weighted 
basis of 45 megahertz or more of below-1-GHz spectrum that is suitable 
and available for the provision of mobile telephony/mobile broadband 
services in that PEA, at the deadline for filing an FCC Form 175 to 
participate in Auction 1002. A total of 134 megahertz of below-1-GHz 
spectrum is currently considered to be ``suitable'' and ``available,'' 
as follows: 50 megahertz of 800 MHz cellular spectrum, 70 megahertz of 
700 MHz spectrum, and 14 megahertz of SMR spectrum.
    98. Here, the Bureau addresses additional implementation issues 
related to qualification to bid on the spectrum reserve: (1) An element 
of the methodology for calculating below-1-GHz spectrum holdings in a 
PEA, related to cellular license areas; (2) guidance regarding how 
certain types of rural partnerships, or members thereof, can request 
status as non-nationwide providers; and (3) logistical details 
regarding the required certification by applicants of their reserve-
eligible qualification in particular PEAs. In addition, Attachment 3 to 
the Auction 1000 Application Procedures PN contains a list, for each 
PEA, of the nationwide providers that are reserve-eligible in that PEA 
based on application of the Bureau's current records of the methodology 
for calculating below-1-GHz spectrum holdings.
a. Accounting for Cellular License Areas in Calculating Below-1-GHz 
Spectrum Holdings in a PEA
    99. As set forth in the Mobile Spectrum Holdings R&O, for purposes 
of determining reserve-eligibility, the Bureau will calculate an 
entity's below-1-GHz spectrum holdings in a PEA by summing the product 
of county spectrum holdings and county population within the PEA (using 
U.S. Census 2010 population data), and then dividing that sum by the 
total population of the PEA. In those PEAs where there are existing 
long-term commercial leases, as the Bureau attributes the leased 
spectrum to both the lessee and lessor, it increases the total below-1-
GHz spectrum amount included by the population-weighted amount of the 
lease--and accordingly increase the threshold for reserve-eligibility 
in those markets to approximately one-third of the total--so that 
service providers' holdings are not overstated in those markets. The 
Bureau notes that 800 MHz cellular service license areas (Cellular 
Geographic Service Areas or CGSAs), which are relevant to determining 
an entity's below-1-GHz holdings, do not generally follow county lines. 
As a result, the Bureau will take additional steps to calculate an 
entity's cellular holdings at the PEA level. Specifically, it will 
first overlay map files of each service provider's CGSAs as of May 2015 
onto map files of census blocks. The CGSA map files are available at: 
https://www.fcc.gov/encyclopedia/cgsa. Census block map files are 
available at: https://www.census.gov/cgi-bin/geo/shapefiles2010/main. 
Next, it will attribute cellular spectrum in each census block to each 
entity whose CGSA boundary overlaps the geometric center of the block, 
referred to as the centroid. The ``centroid'' refers to the internal 
point latitude/longitude of a census block polygon. The Commission has 
used this methodology, which relies on publicly available information 
and is an administratively simple and efficient approach to apply, for 
determining in other contexts how to categorize individual census 
blocks. Once the Bureau calculates an entity's holdings in each census 
block within the PEA, the standard population-weighted methodology is 
used to aggregate spectrum holdings to the PEA level. Census block 
cellular spectrum holdings are multiplied by the population of the 
census block for all census blocks in the PEA. The sum is then divided 
by the population of the PEA to yield the population-weighted megahertz 
cellular spectrum holdings at the PEA level. The Bureau notes that this 
methodology produces the same results, and is administratively easier, 
than a methodology that first aggregates census blocks up to the county 
level and then aggregates counties up to the PEA level.
    100. In order to provide an opportunity for potential applicants in 
Auction 1002 to review the Bureau's current assessment of which of the 
nationwide providers would qualify to bid on reserve spectrum in each 
PEA, and to inform applicants of how to determine where they may 
certify eligibility for bidding on such spectrum, Attachment 3 to the 
Auction 1000 Application Procedures PN includes a list of qualified 
nationwide providers for each PEA, based on the methodology and in the 
Mobile Spectrum Holdings R&O. The Bureau notes that non-nationwide 
providers can qualify to bid on reserve spectrum irrespective of their 
below-1-GHz spectrum holdings for the reasons set out in the Mobile 
Spectrum Holdings R&O, and the Auction 1000 Bidding Procedures PN. If 
an interested party would like to raise potential corrections to this 
list, it may do so by making a filing in AU Docket No. 14-252, GN 
Docket No. 12-268, and WT Docket No. 12-269, and sending the filing by 
electronic mail to catherine.matraves@fcc.gov and karen.sprung@fcc.gov 
by November 16, 2015. An updated list of all nationwide applicants 
qualified to bid on reserved spectrum in each PEA will be issued prior 
to the FCC Form 175 filing deadline. The Bureau notes that spectrum 
holdings that are the subject of an application for assignment or 
transfer of control that has been approved as of the date of the 
Auction 1000 Application Procedures PN will be attributed to the 
assignee or transferee for purposes of the determinations in Attachment 
3 to the Public Notice. The updated list that will be released prior to 
the FCC Form 175 filing deadline similarly will reflect such 
attributions as of the date of that updated list.
b. Required Certification of Eligibility for Reserved Spectrum
    101. In the Auction 1000 Comment PN, the Commission proposed to 
require an applicant seeking to participate in the forward auction as a 
reserve-eligible entity to certify in its application that it is a 
reserve-eligible entity with respect to each PEA in which it wishes to 
be able to bid for reserved blocks. The Commission further proposed 
that an applicant must make this certification in its application and 
that it shall not be able to revise its certification thereafter. The 
Commission stated that this approach will enable potentially reserve-
eligible applicants to forego reserve-eligible status on a PEA-by-PEA 
basis, and that requiring applicants intending to bid for reserved 
spectrum blocks to affirmatively declare their eligibility to do so 
will avoid any subsequent ambiguity or uncertainty by each applicant 
regarding its reserve-eligible status. The Commission received no 
comment on these proposals, and the Bureau therefore adopts a spectrum 
reserve eligibility certification for Auction 1002.

[[Page 66442]]

    102. Under this certification requirement, an applicant that is 
eligible to bid on reserved spectrum blocks in a given PEA, and that 
included the PEA in its license area selection(s), must certify its 
eligibility to bid for reserved blocks in the PEA. An applicant is not 
required to bid on, or certify its eligibility for, reserved spectrum 
blocks in any or all areas in which it is eligible. However, an 
applicant that does not certify its eligibility with respect to a 
particular license area because it is not eligible or it declines to do 
so will not be able to bid for reserved spectrum blocks in that PEA 
during the auction. Accordingly, any demand by that applicant in that 
license area will not be counted as demand for reserved spectrum blocks 
when determining the actual number of blocks that will be reserved in a 
PEA.
c. Effect of Relationships Between a Non-Nationwide Provider and a 
Nationwide Provider
    103. In the Auction 1000 Bidding Procedures PN, the Commission 
recognized a concern that it would be inconsistent with the intent of 
the reserve, in certain unique circumstances involving limited equity 
interests by nationwide providers in long-standing rural partnerships, 
to apply the attribution rule in 47 CFR 20.22 so as to prevent non-
nationwide providers from bidding for reserved spectrum. In particular, 
the Commission identified specific circumstances in which certain rural 
partnerships can secure status as non-nationwide providers for purposes 
of qualifying to bid on the spectrum reserve. These circumstances are 
where the nationwide provider is not the managing partner of the rural 
partnership, has not and will not provide funding for the purchase of 
the licenses in spectrum auctions by the rural partnership, including 
the incentive auction, the rural partnership is of long standing, the 
nationwide provider's interest in the rural partnership is non-
controlling and is less than 33 percent, and the partnership's retail 
service is not branded under the name of the nationwide provider.
    104. If a member of a long-standing rural partnership applying to 
participate in Auction 1002 wishes to assert qualification to bid on 
reserved spectrum in a PEA on the basis of status as a non-nationwide 
provider, notwithstanding attributable relationships with AT&T, 
Verizon, Sprint, or T-Mobile, it should submit an attachment to its FCC 
Form 175 certifying and detailing how it meets the circumstances 
specified by the Commission to secure status as a non-nationwide 
provider for purposes of qualifying to bid on the spectrum reserve.
iv. Disclosure of Agreements Related to Licenses Being Auctioned
    105. An applicant must provide in its FCC Form 175 a brief 
description of, and identify each party to, any partnerships, joint 
ventures, consortia, or agreements, arrangements, or understandings of 
any kind relating to the licenses being auctioned, including any 
agreements that address or communicate directly or indirectly bids 
(including specific prices), bidding strategies (including the specific 
licenses on which to bid or not to bid), or the post-auction market 
structure, to which the applicant, or any party that controls or is 
controlled by the applicant, is a party. For purposes of this rule, a 
controlling interest includes all individuals or entities with positive 
or negative de jure or de facto control of the licensee. In connection 
with the agreement disclosure requirement, the applicant must certify 
under penalty of perjury in its FCC Form 175 that it has described, and 
identified each party to, any such agreements, arrangements, or 
understanding into which it has entered. An applicant may continue 
negotiating, discussing, or communicating with respect to a new 
agreement after the FCC Form 175 filing deadline, provided that the 
communications involved do not relate both to the licenses being 
auctioned and to bids or bidding strategies or post-auction market 
structure. An Auction 1002 applicant that enters into any agreement 
relating to the licenses being auctioned during the auction is subject 
to the same disclosure obligations as it would be for agreements 
existing at the FCC Form 175 filing deadline and must maintain the 
accuracy and completeness of the information in its pending auction 
application.
    106. For purposes of making the required agreement disclosures on 
the FCC Form 175, if parties agree in principle on all material terms 
prior to the application filing deadline, each party to the agreement 
that is submitting an auction application must provide a brief 
description of, and identify the other party or parties to, the 
agreement on its respective FCC Form 175 pursuant to 47 CFR 
1.2105(a)(2)(viii) and (c)(1), even if the agreement has not been 
reduced to writing. However, if the parties have not agreed in 
principle by the FCC Form 175 filing deadline, they should not 
describe, or include the names of parties to, the discussions on their 
applications.
    107. As recently amended, the Commission's rules now generally 
prohibit joint bidding and other arrangements involving auction 
applicants (including any party that controls or is controlled by, such 
applicants). This prohibition applies to joint bidding arrangements 
involving two or more nationwide providers, as well as joint bidding 
arrangements involving a nationwide and one or more non-nationwide 
providers, where any party to the arrangement is an applicant for the 
auction. Non-nationwide providers may enter into agreements to form a 
consortium or a joint venture (as applicable) that result in a single 
party applying to participate in an auction. Specifically, a designated 
entity can participate in only one consortium in an auction, which 
shall be the exclusive bidding vehicle for its members in that auction, 
and non-nationwide providers may participate in an auction through only 
one joint venture, which also shall be the exclusive bidding vehicle 
for its members in that auction. While two or more non-nationwide 
providers may participate in an auction through a joint venture, a 
nationwide and a non-nationwide provider may not do so. The general 
prohibition on joint bidding arrangements excludes certain agreements, 
including those that are solely operational in nature, as defined in 47 
CFR 1.2105(a)(2)(ix)(A)-(C).
    108. For purposes of the prohibition on joint bidding arrangements, 
``joint bidding arrangements'' include arrangements relating to the 
licenses being auctioned that address or communicate, directly or 
indirectly, bidding at the auction, bidding strategies, including 
arrangements regarding price or the specific licenses on which to bid, 
and any such arrangements relating to the post-auction market 
structure. A ``non-nationwide provider'' refers to any provider of 
communications services that is not a ``nationwide provider.'' For 
Auction 1002, AT&T, Verizon, Sprint, and T-Mobile are considered to be 
``nationwide providers.''
    109. In connection with disclosing any agreements related to the 
licenses being auctioned in Auction 1002, an applicant must certify 
that neither the applicant, nor any party that controls or is 
controlled by the applicant, has entered or will enter into any 
agreements relating to the licenses being auctioned other than those 
fall within the limited exceptions in 47 CFR 1.2105(a). In addition, an 
applicant must certify that it is not, and will not be, privy to, or 
involved in, in any way the bids or bidding strategy of more than one 
auction applicant and that, if

[[Page 66443]]

applicable, it has established procedures to preclude its agents, 
employees, or related parties, from possessing information about the 
bids or bidding strategies of more than one applicant or communicating 
such information regarding another applicant. Although 47 CFR 
1.2105(c)(1) does not prohibit auction applicants from communicating 
about matters that are within the scope of an agreement described in 47 
CFR 1.2105(a)(2)(ix)(A)-(C) that has been disclosed in an FCC Form 175 
pursuant to 47 CFR 1.2105(a)(2)(viii), the Bureau reminds applicants 
that certain discussions or exchanges could nonetheless touch upon 
impermissible subject matters, and that compliance with the 
Commission's rules will not insulate a party from enforcement of the 
antitrust laws.
    110. Applicants should bear in mind that a winning bidder will be 
required to disclose in its FCC Form 601 post-auction application the 
specific terms, conditions, and parties involved in any agreement 
relating to the licenses being auctioned into which it had entered 
prior to the filing of its FCC Form 175 application. This applies to 
any bidding consortium, joint venture, partnership, or other agreement, 
arrangement, or understanding of any kind entered into relating to the 
competitive bidding process, including any agreements relating to the 
licenses being auctioned that address or communicate directly or 
indirectly bids (including specific prices), bidding strategies 
(including the specific licenses on which to bid or not to bid), or the 
post-auction market structure, to which the applicant, or any party 
that controls or is controlled by the applicant, is a party.
v. Ownership Disclosure Requirements
    111. Each applicant must comply with the uniform Part 1 ownership 
disclosure requirements and provide information required by 47 CFR 
1.2105 and 1.2112, and, where applicable 1.2110. Specifically, in 
completing the FCC Form 175, 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, and, where applicable, 1.2110.
    112. In certain circumstances, an applicant's most current 
ownership information on file with the Commission, if in an electronic 
format compatible with the FCC Form 175 (such as information submitted 
in an FCC Form 602 or in an FCC Form 175 filed for a previous auction) 
will automatically be entered into the applicant's auction application. 
Each applicant must carefully review any information that has been 
automatically entered in its FCC Form 175 to confirm that all 
information supplied on the application is complete and accurate as of 
the application filing deadline.
vi. Foreign Ownership Disclosure Requirements
    113. Section 310 of the Communications Act requires the Commission 
to review foreign investment in radio station licenses and imposes 
specific restrictions on who may hold certain types of radio licenses. 
The provisions of section 310 apply to applications for initial radio 
licenses, applications for assignments and transfers of control of 
radio licenses, and spectrum leasing arrangements under the 
Commission's secondary market rules. In completing the FCC Form 175, an 
applicant will be required to disclose information concerning any 
foreign ownership of the applicant. If an applicant has a foreign 
owner(s) with ownership interests in excess of the applicable limit or 
benchmark set for in section 310, it may seek to participate in Auction 
1002 as long as it has filed a petition for declaratory ruling with the 
Commission prior to the FCC Form 175 filing deadline. An applicant must 
certify in its FCC Form 175 that, as of the deadline for filing its 
application to participate in Auction 1002, the applicant either is in 
compliance with the foreign ownership provisions of section 310 or has 
filed a petition for declaratory ruling requesting Commission approval 
to exceed the applicable foreign ownership limit or benchmark in 
section 310(b) that is pending before, or has been granted by, the 
Commission.
vii. National Security Certification
    114. The Commission's rules require that any applicant seeking to 
participate in an auction that is required or authorized to be 
conducted pursuant to the Spectrum Act must certify in its FCC Form 
175, under penalty of perjury, that the applicant and all of the 
related individuals and entities required to be disclosed on its 
application are not person(s) who have been, for reasons of national 
security, barred by any agency of the Federal Government from bidding 
on a contract, participating in an auction, or receiving a grant, and 
who are thus statutorily prohibited from participating in such a 
Commission auction. Because the Commission will conduct Auction 1002 
under its general competitive bidding rules and Auction 1002 is subject 
to the national security restriction in section 6004 of the Spectrum 
Act, Auction 1002 applicants must certify as to their compliance with 
the national security restriction in 47 CFR 1.2105(a)(2)(xiii).
viii. Provisions for Small Businesses and Rural Service Providers
    115. The Commission recently revised the designated entity rules 
that apply to all licenses acquired with bidding credits, including 
those won in Auction 1002. A bidding credit represents an amount by 
which a bidder's winning bid will be discounted, subject to the caps 
discussed in the ``Caps on Bidding Credits'' section. Applicants should 
note that all references to a ``winning bid'' discussed in the context 
of designated entity bidding credits in the Auction 1000 Application 
Procedures PN (e.g., the application of a small business discount to an 
applicant's winning bid) refer to the calculated license price 
discussed in the ``Calculating Individual License Prices'' section and 
set forth in section 9 of Appendix H in Attachment 1 to the Auction 
1000 Application Procedures PN.
    116. As set forth in 47 CFR 1.2110, these rule revisions include, 
but are not limited to: (1) Adopting a two-pronged standard for 
evaluating eligibility for small business benefits and eliminating the 
attributable material relationship (AMR) rule; (2) establishing a new 
attribution rule for certain disclosable interest holders of applicants 
claiming designated entity benefits; (3) updating the gross revenue 
amounts defining eligibility for small business benefits; (4) creating 
a separate bidding credit for eligible rural service providers; and (5) 
establishing caps on the total amount of designated entity benefits any 
eligible winning bidder may receive.
    117. In Auction 1002, bidding credits will be available to 
applicants demonstrating eligibility for a small business or a rural 
service provider bidding credit and subsequently winning license(s). 
Bidding credits will not be cumulative--an applicant is permitted to 
claim either a small business bidding credit or a rural service 
provider bidding credit, but not both. Each applicant must also certify 
that it is eligible for the claimed bidding credit in its FCC Form 175. 
Each applicant should review carefully the Commission's decisions 
regarding the designated entity provisions as well as the newly-adopted 
Part 1 rule changes.
a. Small Business Bidding Credit
    118. For Auction 1002, bidding credits will be available to 
eligible small businesses and consortia thereof, subject

[[Page 66444]]

to the caps. Under the service rules applicable to the 600 MHz Band 
licenses to be offered in Auction 1002, the level of bidding credit 
available is determined as follows: (1) A bidder with attributed 
average annual gross revenues that do not exceed $55 million for the 
preceding three years is eligible to receive a 15 percent discount on 
its winning bid; and (2) a bidder with attributed average annual gross 
revenues that do not exceed $20 million for the preceding three years 
is eligible to receive a 25 percent discount on its winning bid.
    119. Small business bidding credits are not cumulative; an eligible 
applicant may receive either the 15 percent or the 25 percent bidding 
credit on its winning bid, but not both. The Commission's unjust 
enrichment provisions also apply to a winning bidder that utilizes a 
bidding credit and subsequently seeks to assign or transfer control of 
its license within a certain period to an entity not qualifying for the 
same level of bidding credit.
    120. Each applicant claiming a small business bidding credit must 
disclose the gross revenues for the preceding three years for each of 
the following: (1) The applicant, (2) its affiliates, (3) its 
controlling interests, and (4) the affiliates of its controlling 
interests. The applicant must also submit an attachment that lists all 
parties with which the applicant has entered into any spectrum use 
agreements or arrangements for any licenses that be may won by the 
applicant in Auction 1002. In addition, to the extent that an applicant 
has an agreement with any disclosable interest holder for the use of 
more than 25 percent of the spectrum capacity of any license that may 
be won in Auction 1002, the identity and the attributable gross 
revenues of any such disclosable interest holder must be disclosed. If 
an applicant is applying as a consortium of small businesses, the 
disclosures described in this paragraph must be provided for each 
consortium member.
b. Rural Service Provider Bidding Credit
    121. An eligible applicant may request a 15 percent discount on its 
winning bid using a rural service provider bidding credit, subject to 
the $10 million cap. To be eligible for a rural service provider 
bidding credit, an applicant must be: (1) A service provider that is in 
the business of providing commercial communications services and, 
together with its controlling interests, affiliates, and the affiliates 
of its controlling interests, has fewer than 250,000 combined wireless, 
wireline, broadband, and cable subscribers; and (2) serves 
predominantly rural areas, defined as counties with a population 
density of 100 or fewer persons per square mile. These eligibility 
requirements must be satisfied by the FCC Form 175 filing deadline for 
Auction 1002, i.e., January 28, 2016. Additionally, an applicant may 
count any subscriber as a single subscriber even if that subscriber 
receives more than one service.
    122. Each applicant seeking a rural service provider bidding credit 
must disclose the number of subscribers it has, along with the number 
of subscribers of its affiliates, controlling interests, and the 
affiliates of its controlling interests. The applicant must also submit 
an attachment that lists all parties with which the applicant has 
entered into any spectrum use agreements or arrangements for any 
licenses that be may won by the applicant in Auction 1002. In addition, 
to the extent that an applicant has an agreement with any disclosable 
interest holder for the use of more than 25 percent of the spectrum 
capacity of any license that may be won in Auction 1002, the identity 
and the attributable subscribers of any such disclosable interest 
holder must be disclosed. Like applicants seeking eligibility for small 
business bidding credits, eligible rural service providers may also 
form a consortium. If an applicant is applying as a consortium of rural 
service providers, the disclosures described in this paragraph, 
including the certification, must be provided for each consortium 
member.
c. Caps on Bidding Credits
    123. Eligible applicants claiming either a small business or rural 
service provider bidding credit will be subject to certain caps on the 
total amount of bidding credits that any eligible applicant may 
receive. Specifically, an applicant claiming a small business bidding 
credit is subject to a $150 million aggregate cap, of which at most $10 
million may apply to licenses won in PEAs with a population of 500,000 
or less. Additionally, an applicant claiming a rural service provider 
bidding credit is subject to a $10 million aggregate cap. No winning 
designated entity bidder will be able to obtain more than $10 million 
in bidding credits in total for licenses won in PEAs 118-416, with the 
exception of PEA 412 (Puerto Rico), which exceeds the 500,000 
population threshold.
d. Attributable Interests
(i) Controlling Interests and Affiliates
    124. Pursuant to 47 CFR 1.2110 an applicant's eligibility for 
designated entity benefits is determined by attributing the gross 
revenues (for those seeking small business benefits) or subscribers 
(for those seeking rural service provider benefits) of the applicant, 
its affiliates, its controlling interests, and the affiliates of its 
controlling interests. 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 based on the totality of the 
circumstances. 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.
    125. Applicants should refer to 47 CFR 1.2110(c)(2) and FCC Form 
175 Instructions to understand how certain interests are calculated in 
determining control for purposes of attributing gross revenues. For 
example, officers and directors of an applicant are considered to have 
a controlling interest in the applicant.
    126. 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 on the 
application requirements regarding controlling interests and 
affiliates, applicants should refer to 47 CFR 1.2110(c)(2) and (c)(5) 
respectively, as well as the FCC Form 175 Instructions.
    127. An applicant seeking a small business bidding credit must 
demonstrate its eligibility for the bidding credit by: (1) Meeting the 
applicable small business size standard, based on the controlling 
interest and affiliation rules, and (2) retaining control, on a 
license-by-license basis,

[[Page 66445]]

over the spectrum associated with the licenses for which it seeks small 
business benefits. For purposes of the first prong of the standard, 
applicants should note that control and affiliation may arise through, 
among other things, ownership interests, voting interests, management 
and other operating agreements, or the terms of any other types of 
agreements--including spectrum lease agreements--that independently or 
together create a controlling, or potentially controlling, interest in 
the applicant's or licensee's business as a whole. In addition, once an 
applicant demonstrates eligibility as a small business under the first 
prong, it must also be eligible for benefits on a license-by-license 
basis under the second prong. As part of making the FCC Form 175 
certification that it is qualified as a designated entity under 47 CFR 
1.2110, an applicant is certifying that it does not have any spectrum 
use or other agreements that would confer de jure and de facto control 
of any license it seeks to acquire with bidding credits.
    128. Under this new standard for evaluating eligibility for small 
business bidding credits, if an applicant executes a spectrum use 
agreement that does not comply with the Commission's relevant standard 
of de facto control, it will be subject to unjust enrichment 
obligations for the benefits associated with that particular license, 
as well as the penalties associated with any violation of section 
310(d) of the Communications Act and related regulations. If that 
spectrum use agreement (either alone or in combination with the 
designated entity controlling interest and attribution rules), goes so 
far as to confer control of the applicant's overall business, the gross 
revenues of the additional interest holders will be attributed to the 
applicant, which could render the applicant ineligible for all current 
and future small business benefits on all licenses.
(ii) Limitation on Spectrum Use
    129. The Commission determined that a new attribution rule will 
apply going forward under which the gross revenues (or the subscribers, 
in the case of a rural service provider) of an applicant's disclosable 
interest holder are attributable to the applicant, on a license-by-
license basis, if the disclosable interest holder has an agreement with 
the applicant to use, in any manner, more than 25 percent of the 
spectrum capacity of any license won by the applicant and acquired with 
a bidding credit during the five-year unjust enrichment period for the 
applicable license. For purposes of this rule, a disclosable interest 
holder of an applicant seeking designated entity benefits is defined as 
any individual or entity holding a ten percent or greater interest of 
any kind in the applicant, including but not limited to, a ten percent 
or greater interest in any class of stock, warrants, options or debt 
securities in the applicant or licensee. Any applicant seeking a 
bidding credit for licenses won in Auction 1002 will be subject to this 
attribution rule and must make the requisite disclosures.
    130. The Commission also determined that certain disclosable 
interest holders may be excluded from this attribution rule. 
Specifically, an applicant claiming the rural service provider bidding 
credit may have spectrum license use agreements with a disclosable 
interest holder, without having to attribute the disclosable interest 
holder's subscribers, so long as the disclosable interest holder is 
independently eligible for a rural service provider credit and the use 
agreement is otherwise permissible under the Commission's existing 
rules. If applicable, the applicant must attach to its FCC Form 175 any 
additional information as may be required to indicate any license (or 
license area) that may be subject to this attribution rule or to 
demonstrate its eligibility for the exception from this attribution 
rule. To the extent an Auction 1002 applicant is required to submit any 
such additional information, the applicant must not disclose details of 
its submission to others as it would reveal information regarding its 
license area selection(s). Consistent with the Commission's limited 
information procedures, the Bureau intends to withhold from public 
disclosure all information contained in any such attachments until 
after the close of the auction.
(iii) Exceptions From Attribution Rules for Small Businesses and Rural 
Service Providers
    131. Applicants claiming designated entity benefits may be eligible 
for certain exceptions from the Commission's attribution rules. 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. 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)(4)(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)(4)(iii), and the applicant must supply any 
additional information as may be required to demonstrate eligibility 
for the exemption from the attribution rule.
    132. An applicant claiming a rural service provider bidding credit 
may be eligible for an exception from the Commission's attribution 
rules as an existing rural partnership. To qualify for this exception, 
an applicant must be a rural partnership providing service as of July 
16, 2015, and each member of the rural partnership must individually 
have fewer than 250,000 combined wireless, wireline, broadband, and 
cable subscribers. Because each member of the rural partnership must 
individually qualify for the bidding credit, by definition, a 
partnership that includes a nationwide provider as a member will not be 
eligible for the benefit.
    133. Finally, a consortium of small businesses or rural service 
providers may seek an exception from the Commission's attribution 
rules. Under the Commission's rules, a consortium of small businesses 
or rural service providers is a conglomerate organization composed of 
two or more entities, each of which individually satisfies the 
definition of small business or rural service provider. A consortium 
must provide additional information for each member demonstrating each 
member's eligibility for the claimed bidding credit in order to show 
that the applicant satisfies the eligibility criteria for the bidding 
credit. The gross revenue or subscriber information of each consortium 
member will not be aggregated for purposes of determining the 
consortium's eligibility for the claimed bidding credit. However, this 
information must be provided to ensure that each consortium member 
qualifies for the bidding credit sought by the consortium.
ix. Tribal Lands Bidding Credit
    134. 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 FCC Form 175. Instead, winning bidders 
may apply for the tribal lands bidding credit after the auction when 
they file their more detailed, FCC Form 601 applications.

[[Page 66446]]

x. Provisions Regarding Current and Former Defaulters
    135. Pursuant to the rules governing competitive bidding, each 
applicant must make certifications regarding whether it is a current or 
former defaulter or delinquent. A current defaulter or delinquent is 
not eligible to participate in Auction 1002, but a former defaulter or 
delinquent may participate so long as it is otherwise qualified and 
makes an upfront payment that is fifty percent more than would 
otherwise be necessary.
    136. For purposes of evaluating the certifications under 47 CFR 
1.2105(a)(2)(xi) and (xii), the Bureau clarifies that ``non-tax debt 
owed to any Federal agency'' includes, within the meaning of the rule, 
all amounts owed under Federal programs, including contributions to the 
Universal Service Fund, Telecommunications Relay Services Fund, and the 
North American Numbering Plan Administration, notwithstanding that the 
administrator of any such fund may not be considered a Federal 
``agency'' under the Debt Collection Improvement Act of 1996. See 31 
U.S.C. 3716 and 3717; see also 47 CFR 1.1911, 1.1912, 1.1940. For 
example, an applicant with a past due USF contribution as of the 
auction application filing deadline would be disqualified from 
participating in Auction 1002 under the Commission's rules. If, 
however, the applicant cures the overdue debt prior to the auction 
application filing deadline (and such debt does not fall within one of 
the exclusions described in the ``Provisions Regarding Current and 
Former Defaulters'' section), it may be eligible to participate in 
Auction 1002 as a former defaulter under the Commission's rules.
    137. Accordingly, each applicant must certify under penalty of 
perjury on its FCC Form 175 that it, its affiliates, its controlling 
interests, and the affiliates of its controlling interests, 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. Additionally, an applicant must 
certify under penalty of perjury whether it (along with its controlling 
interests) has ever been in default on any payment for a Commission 
construction permit or license (including down payments) or has ever 
been delinquent on any non-tax debt owed to any Federal agency, subject 
to the exclusions. For purposes of making these certifications, the 
term ``controlling interest'' is defined in 47 CFR 1.2105(a)(4)(i).
    138. Under the Commission's revised rule regarding applications by 
former defaulters, an applicant is considered a ``former defaulter'' or 
a ``former delinquent'' when, as of the FCC Form 175 deadline, it or 
any of its controlling interests has defaulted on any Commission 
construction permit or license or has 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. For 
purposes of the certification under 47 CFR 1.2105(a)(2)(xii), the 
applicant may exclude from consideration any cured default on a 
Commission license or delinquency on a non-tax debt owed to a Federal 
agency for which any of the following criteria are met: (1) The notice 
of the final payment deadline or delinquency was received more than 
seven years before the FCC Form 175 filing deadline; (2) the default or 
delinquency amounted to less than $100,000; (3) the default or 
delinquency was paid within two quarters (i.e., six months) after 
receiving the notice of the final payment deadline or delinquency; or 
(4) the default or delinquency was the subject of a legal or 
arbitration proceeding and was cured upon resolution of the proceeding. 
With respect to the first exclusion, notice to a debtor may include 
notice of a final payment deadline or notice of delinquency and may be 
express or implied depending on the origin of any Federal non-tax debt 
giving rise to a default or delinquency. Additionally, for the third 
exclusion, the date of receipt of the notice of a final default 
deadline or delinquency by the intended party or debtor will be used 
for purposes of verifying receipt of notice.
    139. In addition to the Auction 1000 Application Procedures PN, 
applicants are encouraged to review the Bureau's previous guidance on 
default and delinquency disclosure requirements in the context of the 
auction application process. Parties are also encouraged to consult 
with the Bureau's Auctions and Spectrum Access Division staff if they 
have any questions about default and delinquency disclosure 
requirements.
    140. 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.
    141. The Bureau reminds each applicant, 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 post-
auction 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. Moreover, a prospective applicant in Auction 1002 should 
note that any post-auction application 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 post-
auction application. The Bureau strongly encourages each applicant 
(including its affiliates, controlling interests, and the affiliates of 
its controlling interests) to carefully review all records and other 
federal agency databases and information sources available to it to 
determine whether the applicant owes or was ever delinquent in the 
payment of non-tax debt owed to any Federal agency.
xi. Optional Applicant Status Identification
    142. 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 FCC Form 175 applications. This applicant 
status information is collected for statistical purposes only and 
assists the Commission in monitoring the participation of various 
groups in its auctions.

[[Page 66447]]

xii. Modifications to FCC Form 175
a. Only Minor Modifications Allowed
    143. After the initial FCC Form 175 filing deadline, an Auction 
1002 applicant will be permitted to make only minor changes to its 
application. Examples of minor changes include the deletion or addition 
of authorized bidders (to a maximum of three), revision of addresses 
and telephone numbers of the applicant, its responsible party, and its 
contact person, and change in the applicant's selected biding option 
(electronic or telephonic). Major modification to an FCC Form 175 
application (e.g., change of license area selection, change in 
ownership that would constitute an assignment or transfer of control of 
the applicant, change of certifying official, change in applicant's 
legal classification that results in a change in control, or change in 
claimed eligibility for a higher percentage of bidding credit) will not 
be permitted after the initial FCC Form 175 filing deadline. If an 
applicant makes a ``major amendment,'' as defined by 47 CFR 
1.2105(b)(2), the major amendment will not be accepted and may result 
in the dismissal of the application. 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. 
The Bureau reiterates that, even if an applicant's FCC Form 175 is 
dismissed, the applicant would remain subject to the communication 
prohibitions of 47 CFR 1.2105(c) until the down-payment deadline.
b. Duty To Maintain Accuracy and Completeness of FCC Form 175
    144. Each applicant has a continuing obligation to maintain the 
accuracy and completeness of information furnished in its pending 
application, including a pending application in a competitive bidding 
proceeding. An Auction 1002 applicant must furnish additional or 
corrected information to the Commission within five days after a 
significant occurrence, or amend its FCC Form 175 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. An applicant's obligation to make modifications to a 
pending application in order to provide additional or corrected 
information continues in accordance with the Commission's rules. The 
Bureau notes that an applicant is obligated to amend its pending 
application even if a reported change is considered to be a major 
modification that may result in the dismissal of its application.
c. Submitting Modifications to FCC Form 175
    145. If an applicant needs to make permissible minor changes to its 
FCC Form 175, or must make changes in order to maintain the accuracy 
and completeness of its application pursuant to 47 CFR 1.65 and 
1.2105(b)(4), during a time when the system is available to the 
applicant for purposes of making the type of change(s) required, such 
changes should be made electronically to its FCC Form 175 using the 
Auction System. For the change to be submitted and considered by the 
Commission, an applicant must 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.
    146. An applicant cannot use the Auction System outside of the 
initial and resubmission filing windows to make changes to its FCC Form 
175 for other than administrative changes (e.g., changing responsible 
party or contact person name and related information, adding or 
deleting an authorized bidder). If other permissible minor changes need 
to be made, or if changes are required pursuant to 47 CFR 1.65 and 
1.2105(b)(4), outside of these filing windows, the applicant must 
submit a letter briefly summarizing the changes to its FCC Form 175 by 
email to auction1002@fcc.gov. The email summarizing the changes must 
include a subject or caption referring to Auction 1002 and the name of 
the applicant, for example, ``Re: Changes to Auction 1002 Application 
of XYZ Corp.'' Any attachments to email must be formatted as 
Adobe[supreg] Acrobat[supreg] (PDF) or Microsoft[supreg] Word 
documents. Questions about FCC Form 175 amendments should be directed 
to the Auctions and Spectrum Access Division at (202) 418-0660. An 
applicant that submits its changes in this manner must subsequently 
update its FCC Form 175 application in the Auction System once it is 
open and available to applicants. Moreover, after the initial filing 
window has closed, the Auction System will not permit an applicant to 
make certain permissible changes itself (e.g., correcting a 
misstatement of the applicant's legal classification, reducing the 
applicant's claimed bidding credit level). This is the case because 
certain fields on the FCC Form 175 will no longer be available to, or 
changeable by, the applicant after the initial application filing 
window closes. If an applicant needs to make a permissible minor change 
that cannot be made using the Auction System, it must submit a written 
request by email to the auction1002@fcc.gov mailbox requesting that the 
Commission manually make the change on the applicant's behalf. The 
applicant must then recertify and resubmit its application by clicking 
on the SUBMIT button to confirm the change.
    147. As with the FCC Form 175, any application amendment and 
related statements of fact must be certified by an authorized 
representative of the applicant with authority to bind the applicant. 
Applicants should note that submission of any such amendment or related 
statement of fact constitutes a representation by the person certifying 
that he or she is an authorized representative with such authority, and 
that the contents of the amendment or statement of fact are true and 
correct.
    148. Applicants must not submit application-specific material 
through the Commission's Electronic Comment Filing System. Further, as 
discussed in the Prohibited Communications PN, 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 1002. A party 
seeking to submit, outside of the Auction System, information that 
might reflect non-public information, such as an applicant's license 
area 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 period 
pursuant to 47 CFR 1.2105(c).

D. Auction 1002 Process

i. Online Auction Tutorials and Training
    149. Online auction tutorials will be available on the Auction 1002 
Web page for prospective bidders to familiarize themselves with the 
forward auction application and bidding processes. The online tutorials 
will provide information about pre-auction procedures, completing 
auction applications, auction conduct, the Auction System, auction 
rules, and 600 MHz Band service rules. Specifically, the first auction 
tutorial will focus on the auction application process and the second 
tutorial will focus on the biding

[[Page 66448]]

process. Both tutorials will also provide an avenue to ask Commission 
staff questions about the auction, auction procedures, filing 
requirements, and other matters related to the forward auction. The 
tutorials 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, and screen shots of the online application and Auction System. 
Using a web browser with Adobe Flash Player, the tutorials will be 
accessible from the Commission's Auction 1002 Web page at https://www.fcc.gov/auctions/1002 through an ``Auction Tutorial'' link under 
the ``Education'' tab. The application tutorial will be available on 
the Auction 1002 Web page under the ``Education'' tab on January 7, 
2016, and the bidding process tutorial will be available on February 
29, 2016. Once posted, the tutorials will remain available and 
accessible anytime for reference in connection with the procedures 
outlined in the Auction 1000 Application Procedures PN. In addition, an 
Auction 1002 applicant whose application has been deemed to be 
``complete'' will be provided with additional opportunities to gain 
knowledge and experience with the auction bidding system prior to the 
mock auction that will be offered to qualified bidders. Based on the 
Bureau's experience with past auctions, parties interested in 
participating in this auction will find the interactive, online 
tutorials an efficient and effective way to further their understanding 
of the auction process.
ii. FCC Form 175--Due Prior to 6:00 p.m. ET on January 28, 2016
    150. In order to be eligible to bid in the forward auction, 
applicants must first follow the procedures set forth in the FCC Form 
175 Instructions to submit an FCC Form 175 electronically via the 
Auction System.
    151. An applicant may file its application to participate in 
Auction 1002 during the filing window that will begin at noon ET on 
January 14, 2016 and close at 6:00 p.m. ET on January 28, 2016. The 
application must be submitted prior to the closing of the filing 
window. 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. Applicants are strongly encouraged to file early and 
are responsible for allowing adequate time for filing their 
applications. There are no limits or restrictions on the number of 
times an application can be updated or amended until the filing 
deadline on January 28, 2016.
    152. 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 it will not 
be received or reviewable by Commission staff. Additional information 
about accessing, completing, and viewing the FCC Form 175 will be 
included in the FCC Form 175 Instructions. FCC Auctions Technical 
Support is available at (877) 480-3201, option nine; (202) 414-1250; or 
(202) 414-1255 (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.
iii. Application Processing and Minor Corrections
a. Public Notice of Applicants' Initial Application Status and 
Opportunity for Minor Corrections
    153. After the deadline for filing auction applications, the Bureau 
will process all timely submitted applications to determine which are 
complete, and subsequently will issue a public notice with applicants' 
initial application status 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.
    154. After the application filing deadline on January 28, 2016, 
applicants can make only minor corrections to their applications. 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) will not be permitted.
    155. Commission staff will communicate only with an applicant's 
contact person or certifying official, as designated on the applicant's 
FCC Form 175, unless the applicant's certifying official or contact 
person notifies Commission staff in writing that another representative 
is authorized to speak on the applicant's behalf. Authorizations may be 
sent by email to auction1002@fcc.gov.
b. Public Notice of Applicants' Final Application Status After Upfront 
Payment Deadline
    156. The Auction 1002 Qualified Bidders PN will be issued at least 
15 business days before bidding in the initial stage of Auction 1002 
begins. Qualified bidders are those applicants with submitted FCC Form 
175 applications that are deemed timely-filed and complete, provided 
that such applicants have timely submitted an upfront payment that is 
sufficient to qualify them to bid.
iv. Upfront Payments and Bidding Eligibility
    157. In order to be eligible to bid in Auction 1002, an applicant 
must submit an upfront payment. An upfront payment is a refundable 
deposit made by each bidder to establish its eligibility to bid on 
licenses. Upfront payments help deter frivolous or insincere bidding, 
and provide the Commission with a source of funds in the event that the 
bidder incurs liability during the auction. Upfront payments will be 
due after the initial clearing target and associated band plan scenario 
has been determined. The deadline for submitting upfront payments for 
Auction 1002, as well as detailed instructions about submitting upfront 
payments, will be provided in the Upfront Payment PN.
    158. The amount of the upfront payment will determine a bidder's 
initial bidding eligibility in terms of bidding units, i.e., the 
maximum number of blocks, as measured by their associated bidding 
units, a bidder may demand in the clock phase of the forward auction. 
In order to bid for blocks in a particular PEA, a qualified bidder must 
have selected that PEA on its FCC Form 175 and must have a current 
eligibility level that meets or exceeds the number of bidding units 
assigned to the blocks in that PEA multiplied by the number of blocks 
for which it wishes to bid. At a minimum, an applicant's total upfront 
payment must be enough to establish eligibility to bid on at least one 
block in one of the PEAs selected on its FCC Form 175 for Auction 1002, 
or else the applicant will not be eligible to bid in the auction. In 
addition, each applicant should check its calculations carefully, as 
there is no provision for increasing a bidder's eligibility after the 
upfront payment deadline. An applicant does not have to make an upfront 
payment to cover all of the blocks in all of the license areas the 
applicant selected on its FCC Form 175, but only enough to cover the 
maximum number of bidding units that are associated with the blocks in 
the license

[[Page 66449]]

area(s) on which it wishes to bid in any round. The total upfront 
payment does not affect the prices at which the bidder may demand 
blocks, nor the bidder's dollar commitment associated with the bidder's 
total demands at any point in the auction.
    159. The Commission adopted an upfront payment amount of $2,500 per 
bidding unit for Auction 1002. The number of bidding units assigned to 
the spectrum blocks in each PEA, calculated using the approach adopted 
by the Commission in the Auction 1000 Bidding Procedures PN is set 
forth in Attachment 1, Appendix F (Forward Auction Bidding Units, 
Upfront Payments, and Minimum Opening Bids) to the Auction 1000 
Application Procedures PN. The number of bidding units for the blocks 
in a given PEA will be fixed and will not change during the auction, 
regardless of price changes. The specific minimum opening bids and 
upfront payments for the forward auction are set forth in Attachment 1, 
Appendix F to the Auction 1000 Application Procedures PN.
    160. Applicants considered to be former defaulters under the 
Commission's rules must make upfront payments that are 50 percent 
greater than non-former defaulters. For purposes of this calculation, 
an ``applicant'' includes the applicant itself and its controlling 
interests, as defined in 47 CFR 1.2105 and 1.2110. 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.
v. Auction Registration
    161. All qualified bidders listed in the Auction 1002 Qualified 
Bidders PN will be 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 application and will 
include the SecurID[supreg] tokens that will be required to place bids, 
the ``Auction System Bidder's Guide,'' and the Auction Bidder Line 
phone number. Forward auction qualified bidders will have access to 
detailed impairment information, including the actual source and 
location of any impairment, upon receipt of their registration 
materials.
    162. 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 five days prior to the mock auction, 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.
    163. 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 FCC Form 
175 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).
vi. Remote Electronic Bidding
    164. 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 designated 
SecurID[supreg] token, which the Commission will provide at no charge. 
Each authorized bidder will be issued a unique SecurID[supreg] token. 
For security purposes, the SecurID[supreg] tokens, the telephonic 
bidding telephone number, and the ``Auction System 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 and designated authorized bidder. SecurID[supreg] tokens issued 
for other auctions or obtained from a source other than the Commission 
will not work for Auction 1002. All telephone calls are recorded.
vii. Mock Auction--Clock and Assignment Phases
    165. All Auction 1002 qualified bidders will be eligible to 
participate in a mock auction prior to bidding in Auction 1002. This 
mock auction will enable bidders to become familiar with the ascending 
clock auction format and assignment phase bidding using the Auction 
System prior to the start of the auction. The Bureau strongly 
recommends that all bidders participate in the mock auction. The date 
for the mock auction will be announced in Auction 1002 Qualified 
Bidders PN.

IV. Post-Auction Process

A. Channel Reassignment PN

    166. Following completion of the reverse and forward auctions, the 
Media and Wireless Telecommunications Bureaus will announce the results 
of the incentive auction and the repacking process in the Channel 
Reassignment PN. Specifically, the Channel Reassignment PN will provide 
the results of the reverse auction, the forward auction and the 
repacking, indicating the reassignments of television channels and 
reallocations of broadcast television spectrum. The Channel 
Reassignment PN will also establish the beginning of a 39-month post-
auction transition period. Finally, the Channel Reassignment PN will 
provide additional details relating to post-auction procedures for 
successful bidders in the reverse and forward auctions, respectively.

B. Incentive Payments To Reverse Auction Winning Bidders

i. Payees and Transmittal
    167. Incentive payments will be disbursed from the proceeds 
received in the forward auction. A successful bidder in the reverse 
auction must submit the necessary financial information via a 
standardized incentive payment form to facilitate the disbursement of 
its incentive payment. Specific procedures for submitting the form, 
including applicable deadlines, will be set forth in the Channel 
Reassignment PN. As noted in the Incentive Auction R&O, the Commission 
intends to follow winning reverse auction bidders' payment instructions 
as set forth on their respective standardized incentive payment forms 
to the extent permitted by applicable law.
ii. Time of Payment
    168. The Commission will share auction proceeds with broadcasters 
relinquishing spectrum usage rights as soon as practicable following 
the successful conclusion of the incentive auction. As explained in the 
Incentive Auction R&O, the Commission may disburse auction proceeds 
only after spectrum licenses associated with winning forward auction 
bids have been granted, absent express statutory direction to do 
otherwise. The Commission typically grants spectrum licenses after an 
auction on a rolling basis, as license applications filed by winning 
bidders are ready to be granted. Likewise, incentive auction proceeds 
will become available for distribution on a rolling basis over time and 
at intervals tied to the forward auction licensing process. 
Consequently, the Bureau cannot at this point set a specific deadline 
for sharing incentive auction proceeds.
    169. The Commission is committed to disbursing auction proceeds as

[[Page 66450]]

promptly as possible while meeting all of its statutory 
responsibilities. As the Commission noted in the Auction 1000 Comment 
PN, circumstances regarding the post-auction transition process for 
broadcasters may make it in the public interest to prioritize payments 
to some broadcasters over others in order to expedite the entire post-
auction transition process. The Commission may take factors that 
facilitate the transition process into account when determining the 
sequence of payments sharing auction proceeds.

C. Forward Auction Participants

    170. Shortly after bidding has ended, the Channel Reassignment PN 
will be issued declaring the auction closed, identifying the winning 
bidders and the total amount that they will owe, and establishing the 
deadlines for submitting down payments, final payments, post-auction 
applications, and ownership disclosure information reports. The Channel 
Reassignment PN will include the type information that is traditionally 
contained in an auction closing public notice.
i. Calculating Individual License Prices
    171. In order to calculate individual license prices, the Auction 
System must determine how to apportion to individual licenses any 
assignment phase payments and potentially, any capped bidding credit 
discounts, since in both cases, a single amount may apply to multiple 
licenses. For example, a single assignment phase payment will apply to 
multiple licenses if a bidder won multiple licenses in a PEA or if PEAs 
were grouped for bidding in the assignment phase. A single capped 
bidding credit will apply if a bidder's bidding credit percentage as 
applied to all its winnings in small markets or in all markets overall, 
results in a discount larger than the applicable cap.
    172. In order to calculate individual license prices, the Auction 
System will: (1) Calculate, for all licenses won by a bidder with a 
bidding credit, the total amount of any bidding credit discount for the 
bidder, capping that amount as needed (for a winning bidder claiming a 
small business bidding credit, this requires a determination in (1) of 
which bidding credit cap(s) apply); (2) apportion the total discount 
amount to the group of licenses won by the bidder in each PEA or 
assignment phase PEA group; (3) apportion the resulting discount and 
the assignment phase payment among the individual licenses won in the 
PEA/PEA group; and finally, (4) calculate the license price net of any 
bidding credit discount as the sum of the impairment adjusted clock 
phase price for that license plus the amount apportioned to the license 
in (3). To calculate the gross individual license price, the Auction 
System will ignore any apportioned bidding credit discount. For more 
detailed information about how final license prices are determined, 
please see Attachment 1, Appendix H (Forward Auction Assignment Phase 
and Post-Auction License Prices), attached to the Auction 1000 
Application Procedures PN.
    173. Consistent with past practices, the verification of 
eligibility and final calculation of any designated entity benefits for 
any license won in Auction 1002 will be conducted during the post-
auction application process.
ii. Down Payments
    174. Within ten business days after release of the Channel 
Reassignment PN, 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 1002 to twenty percent of the 
amount of its total final payments net of any applicable small business 
or rural service provider bidding credits.
iii. Final Payments
    175. Each winning bidder will be required to submit the balance of 
the net amount of its total final payments within ten business days 
after the applicable deadline for submitting down payments.
iv. Post-Auction Application (FCC Form 601)
    176. The Commission's rules provide that, within ten business days 
after release of the Channel Reassignment PN, winning bidders must 
electronically submit a properly completed post-auction application 
(FCC Form 601) for the license(s) they won through Auction 1002.
    177. A winning bidder claiming eligibility for a small business 
bidding credit or a rural service provider bidding credit must 
demonstrate its eligibility in its FCC Form 601 post-auction 
application for the bidding credit sought. Further instructions on 
these and other filing requirements will be provided to winning bidders 
in the Channel Reassignment PN.
    178. Winning bidders organized as bidding consortia must comply 
with the FCC Form 601 post-auction application procedures established 
in the CSEA/Part 1 Report and Order. Specifically, each member (or 
group of members) of a winning consortium seeking separate licenses 
will be required to file a separate post-auction application for its 
respective license(s). If the license is to be partitioned or 
disaggregated, the member (or group) filing the post-auction 
application must provide the relevant partitioning or disaggregation 
agreement in its post-auction application. In addition, if two or more 
consortium members wish to be licensed together, they must first form a 
legal business entity, and the post-auction application must 
demonstrate that any such entity must meet the applicable designated 
entity criteria.
v. Ownership Disclosure Information Report (FCC Form 602)
    179. Within ten business days after release of the Channel 
Reassignment PN, 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 FCC Form 601 post-
auction application.
    180. If a winning bidder already has a complete and accurate FCC 
Form 602 on file in Universal Licensing System (ULS), it is not 
necessary to file a new report, but the winning bidder must certify in 
its FCC Form 601 application that the information on file with the 
Commission is complete and accurate. If the winning bidder does not 
have an FCC Form 602 on file, or if it is not complete and accurate, it 
must submit one.
    181. When a winning bidder submits an FCC Form 175, 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 winning bidder's FCC Form 175 
application. A winning bidder must review the pre-filled information 
and confirm that it is complete and accurate as of the filing date of 
the FCC Form 601 post-auction application before certifying and 
submitting the FCC Form 602. Further instructions will be provided to 
winning bidders in the Channel Reassignment PN.
vi. Tribal Lands Bidding Credit
    182. 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.

[[Page 66451]]

    183. 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 FCC Form 601 post-auction 
application. When initially filing the post-auction 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 winning bidder will 
have 180 days from the close of the post-auction 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). 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.
vii. Default and Disqualification
    184. 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 FCC Form 
601 post-auction application, fails to make full payment, or is 
otherwise disqualified) will be subject to the payments described in 47 
CFR 1.2104(g)(2). The default payment consists of a deficiency payment, 
equal to the difference between the amount of the Auction 1002 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. For purposes of Auction 
1002, the ``winning bid'' refers to the calculated license price 
discussed in the ``Calculating Individual License Prices'' section of 
the Auction 1000 Application Procedures PN and set forth in section 9 
of Appendix H in Attachment 1 (Forward Auction Assignment Phase and 
Post-Auction License Prices) to the Auction 1000 Application Procedures 
PN.
    185. The percentage of the bid that a defaulting bidder must pay in 
addition to the deficiency will depend on the auction format ultimately 
chosen for a particular auction. The Commission's rules specify that in 
an auction without combinatorial bidding, such as Auction 1002, the 
percentage shall be between three and 20 percent. In the Auction 1000 
Comment PN, the Commission proposed an additional default payment of 20 
percent of the applicable bid for the forward auction, concluding that 
the maximum amount is in the public interest given the importance of 
deterring defaults in order to minimize the possibility that the actual 
proceeds generated by the auction will not differ significantly from 
the amounts used to determine that the final stage rule is met. As the 
Commission noted in the Incentive Auction R&O, parties receiving the 
first disbursements of auction proceeds once amounts become available 
for distribution--including broadcasters relinquishing spectrum usage 
rights--will be insulated from the effects of any forward auction 
bidder defaults. The Commission received no comment on this proposal. 
Given the policy and public interest considerations underlying this 
proposal, and in the absence of any opposition, the Bureau adopts an 
additional default payment of 20 percent for Auction 1002.
    186. 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.
viii. Refund of Remaining Upfront Payment Balance
    187. After the auction, an applicant that is not a winning bidder 
or is a winning bidder whose upfront payment exceeded the net amount of 
its total final payments may be entitled to a refund of some or all of 
its upfront payment. Information about requesting a refund of a 
remaining upfront payment balance will be provided in the Upfront 
Payment PN. A 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, FCC Form 601 post-auction 
applications, and final payments.

V. Supplemental Final Regulatory Flexibility Analysis

    188. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA), the Commission has prepared a Supplemental Final 
Regulatory Flexibility Analysis (SFRFA) of the possible significant 
economic impact on small entities by the procedures and instructions 
described in Attachment 4 of the Auction 1000 Application Procedures 
PN.

A. Need for, and Objectives of, Public Notice

    189. The Auction 1000 Application Procedures PN implements the 
procedures established in the Commission's prior orders to carry out 
the broadcast television spectrum incentive auction, which is scheduled 
to begin on March 29, 2016, and consists of the reverse auction 
(Auction 1001) and the forward auction (Auction 1002). In the Auction 
1000 Comment PN, the Commission sought comment on the proposals for 
conducting the incentive auction, including the proposed procedures for 
the forward auction, the reverse auction, and the integration of the 
reverse and forward auctions, that would implement rules previously 
proposed in the Incentive Auction NPRM and adopted in the Incentive 
Auction R&O. In the Auction 1000 Bidding Procedures PN, the Commission 
established the bidding procedures for the reverse and forward 
auctions. Pursuant to the Commission's direction, the Auction 1000 
Application Procedures PN establishes the application procedures for 
the reverse and forward auctions; provides detailed information, 
instructions, and deadlines for filing applications; and finalizes 
certain post-auction procedures established by the Commission's prior 
orders.
    190. Previously, as required by the RFA, the Commission prepared an 
Initial Regulatory Flexibility Analysis (IRFA) in connection with the 
Incentive Auction NPRM and a Final Regulatory Flexibility Analysis 
(FRFA) in connection with the Incentive Auction R&O. Likewise, the 
Commission's Mobile Spectrum Holdings NPRM included an Initial 
Regulatory Flexibility Analysis and the Mobile Spectrum Holdings R&O 
included a Final Regulatory Flexibility Analysis (MSH FRFA). Recently, 
the Commission modified its Part 1 competitive bidding rules, including 
the designated entity rules that apply to all licenses acquired with 
bidding credits, including those won in Auction 1002. The Part 1 NPRM 
and Part 1 PN included an IRFA and Supplemental IRFA respectively, and 
the resulting Part 1 R&O included a Final Regulatory Flexibility 
Analysis (Part 1 FRFA).

[[Page 66452]]

    191. Following the release of the Auction 1000 Comment PN, a 
Supplemental Public Notice sought comment on how the proposals in the 
Auction 1000 Comment PN could affect either the IRFA or the FRFA. The 
Supplemental Public Notice provided that the proposals in the Auction 
1000 Comment PN did not change any of the matters described in the IRFA 
or FRFA. As further noted in the Supplemental Public Notice, the 
request for comment focused on how the proposals in the Auction 1000 
Comment PN might affect either the IRFA or the FRFA.
    192. The subsequent Auction 1000 Bidding Procedures PN included a 
Supplemental Final Regulatory Flexibility Analysis (Bidding Procedures 
PN SFRFA) that addressed any determinations by the Commission that 
might have affected the IRFA and FRFA. In the Bidding Procedures PN 
SFRFA, one commenter responded to the Supplemental Public Notice. The 
SFRA addressed this response accounting for any particular impact on 
small businesses and explaining the reasons supporting the Commission's 
decisions. Aside from those comments that have been addressed in the 
Auction 1000 Bidding Procedures PN and the associated SFRFA, no other 
comments have been filed in response to the Supplemental Public Notice 
or the application procedures and instructions set forth in the Auction 
1000 Application Procedures PN. As such, the procedures and 
instructions in the Public Notice do not change the analysis set forth 
in the IFRA, FRFA, and Bidding Procedures PN SFRFA. This SRFRA 
summarizes the application procedures in the Public Notice to assure 
that the Bureau has accounted properly for any economic impact on small 
businesses, consistent with the IRFA and FRFA.
    193. Under the application procedures governing the conduct of the 
reverse auction, licensees of commercial and noncommercial educational 
full power and Class A television stations (eligible broadcast 
licensees) identified in the Final Baseline may apply to participate in 
the reverse auction. On its application (FCC Form 177), an eligible 
broadcast licensee will have up to three bid options depending on its 
pre-auction band: (1) Go off-air (available to all stations); (2) move 
to a Low-VHF channel (available to UHF or High-VHF stations); and (3) 
move to a High-VHF channel (available only to UHF stations). 
Additionally, if the applicant's application is timely-filed and deemed 
complete, it must then commit, at the associated opening price, to a 
preferred relinquishment option for each station for which it wishes to 
place bids in the clock rounds. Reverse auction bidders will be able to 
participate in the reverse auction over the Internet using the 
Commission's Auction System.
    194. In the forward auction, each applicant must submit 
electronically through the Commission's Auction System a complete, 
accurate, and timely application (FCC Form 175), and submit a timely 
and sufficient upfront payment. Each stage of forward auction will 
consist of two phases--an ascending clock phase and an assignment 
phase. Forward auction bidders will also be able to participate in the 
forward auction over the Internet using the Commission's Auction 
System. Following the completion of the reverse and forward auctions, 
the Bureaus will release a Channel Reassignment PN that will provide 
the results of the reverse auction, the forward auction, and the 
repacking, indicating the reassignment of the television channels and 
reallocation of broadcast television spectrum, among other things.

B. Summary of Significant Issues Raised by Public Comments in Response 
to the Supplemental Notice

    195. The Bidding Procedures PN SFRFA addressed the only response to 
the Supplemental Public Notice, and no subsequent comments were filed 
in response to the Supplemental Public Notice. Thus, no specific 
alternative procedures were raised for consideration by the Bureau. 
However, the Bureau considered the potential impact of the auction 
procedures and instructions in the Auction 1000 Application Procedures 
PN on all potential participants, including small businesses.
    196. Pursuant to the Small Business Jobs Act of 2010, the 
Commission is required to respond to any comments filed by the Chief 
Counsel for Advocacy of the Small Business Administration (SBA), and to 
provide a detailed statement of any change made to the proposed rules 
as a result of those comments. The Chief Counsel did not file any 
comments in response to the Auction 1000 Comment PN or the Supplemental 
Public Notice.

C. Description and Estimate of the Number of Small Entities To Which 
Specified Auction 1000 Procedures Will Apply

    197. The RFA directs agencies to provide a description of and, 
where feasible, an estimate of the number of small entities that may be 
affected by rules proposed in that rulemaking proceeding, if adopted. 
The RFA generally defines the term ``small entity'' as having the same 
meaning as the terms ``small business,'' ``small organization,'' and 
``small governmental jurisdiction.'' In addition, the term ``small 
business'' has the same meaning as the term ``small business concern'' 
under the Small Business Act. A small business concern is one which: 
(1) Is independently owned and operated; (2) is not dominant in its 
field of operation; and (3) satisfies any additional criteria 
established by the Small Business Administration (SBA). Auction 1000 is 
the first-of-its-kind incentive auction and participation is voluntary; 
therefore, the Bureau cannot make a meaningful estimate of the number 
of small entities who may apply to participate in the reverse and 
forward auctions. However, the Bureau anticipates greater participation 
by small businesses in the forward auction due to the recent changes in 
the Commission's designated entity rules aimed at providing greater 
opportunities for small businesses to gain access to capital in order 
to participate meaningfully at Commission auctions, including Auction 
1002. Because the Auction 1000 Application Procedures PN implements 
those procedures and policies established in the Commission's orders 
relating to Auction 1000, the procedures, terms, and conditions may 
affect the same individuals and entities described in paragraphs 14 
through 36 of the FRFA, paragraphs 5 through 30 of the MSH FRFA, and 
paragraphs 9 through 35 of the Part 1 FRFA.

D. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements

    198. Some of the application procedures contained in the Auction 
1000 Application Procedures PN will affect reporting, recordkeeping, 
and other compliance requirements for small entities. However, these 
procedures implement the rules and policies established in the 
Commission's orders, including the factual, policy, and legal analyses 
supporting those policies. Additionally, no comments were filed in 
response to these particular procedures and the Bureau intends to apply 
them uniformly to all entities, including small businesses. However, to 
the extent that some of the procedures in the Auction 1000 Application 
Procedures PN may provide supplemental information for small 
businesses, the Bureaus summarizes these relevant procedures.
i. Reverse Auction (Auction 1001)
    199. Red Light Rule. To encourage broadcaster participation in the 
reverse auction, in the Auction 1000

[[Page 66453]]

Application Procedures PN, the Bureau waives the red light rule for the 
limited purpose of permitting any licensee that is red lighted for debt 
owed to the Commission at the time it submits a reverse auction 
application to participate in the reverse auction. Because a reverse 
auction applicant may incur debt to the Commission after submission of 
its application, and may fail to pay the debt when due, to participate 
in the auction, each reverse auction applicant will be required to 
certify in its application that it (1) acknowledges its liability to 
the Commission for any debt owed to the Commission that the applicant 
incurred before, or that it may incur after, the reverse auction 
application deadline, including all accrued interest, penalties and 
costs, and that the debt will continue to accrue interest, penalties 
and costs until paid; and (2) agrees that the Commission may pay all 
debt owed by the applicant to the Commission from the applicant's share 
of auction proceeds. Each reverse auction applicant will also be 
required to certify its agreement that if an appeal of, or request for 
waiver or compromise of, any debt owed by the applicant to the 
Commission is pending at the conclusion of the incentive auction, the 
Commission may withhold so much of the applicant's share of the auction 
proceeds as is necessary to pay the debt in full, including accrued 
interest, penalties and costs, until issuance of a final non-appealable 
decision regarding the debt or waiver or compromise request, and may 
then pay the debt from the applicant's withheld share.
    200. Channel Sharing Certification. In the Incentive Auction R&O, 
the Commission adopted rules requiring prospective sharer stations 
under pre-auction channel sharing agreements (CSAs) to make certain 
certifications concerning their channel sharing arrangements. In 
addition to the certifications adopted in the Incentive Auction R&O, a 
sharer station must also certify that the CSA submitted by the reverse 
auction applicant is a true, correct, and complete copy of the CSA 
between the parties.
    201. Provisions Regarding Pending Proceedings. Each reverse auction 
applicant that selects going off-air as a bidding option for a station 
must indicate on its FCC Form 177 whether it will hold any other 
broadcast licenses if all of the bids that it might place to go off-air 
are accepted. If it will hold another broadcast license, then the 
applicant must certify that the applicant will remain subject to any 
license renewal, as well as any enforcement action, pending at the time 
of the auction application deadline against the station that may go 
off-air as a result of the auction. If it will not hold any other 
broadcast licenses, then the applicant must certify in its application 
(1) that pursuant to the Commission's announced procedures for 
resolving such matters in connection with this auction, the Commission 
may withhold a portion of the share of auction proceeds for the 
station, if any, pending final determination of any FCC liabilities 
with respect to the station and such portion may be applied towards the 
satisfaction of such liabilities; and (2) that the applicant remains 
subject to the Commission's jurisdiction and authority to impose 
enforcement or other FCC liabilities with respect to the station, 
notwithstanding the surrender of its license for the station.
    202. Additionally, each reverse auction applicant must also 
indicate for each license identified in its application whether the 
license is subject: (1) To a non-final revocation order; or (2) has 
expired or been cancelled and is subject to a non-final license 
cancellation order. An applicant that includes a Class A television 
station in its application must indicate whether that station is 
subject to a non-final downgrade order. If an applicant indicates that 
a license in its application is subject to any of the foregoing 
revocation, cancellation, or downgrade proceedings, it must certify in 
its application that it agrees with the Commission's announced 
procedures to withhold all of any incentive payment for the station 
pending the final outcome of any such proceeding.
    203. All auction proceeds held (i) to cover potential enforcement 
liabilities, (ii) because of an ongoing license validity or downgrade 
proceeding, or (iii) until final resolution of an appeal of a debt 
determination or a compromise or waiver request will be held by the 
Commission in the U.S. Treasury. As determined by the Commission in the 
Incentive Auction R&O, amounts held following the auction will be 
released to the broadcaster or applied towards any forfeiture costs and 
other debt the broadcaster owes to the Commission, as appropriate in 
light of the final resolution of the relevant issues.
ii. Forward Auction (Auction 1002)
    204. Certification of Eligibility for Reserved Spectrum. Under this 
certification requirement, a forward auction applicant that is eligible 
to bid on reserved spectrum blocks in a given PEA, and that included 
the PEA in its license area selection(s), must certify its eligibility 
to bid for reserved blocks in the PEA. An applicant is not required to 
bid on, or certify its eligibility for, reserved spectrum blocks in any 
or all areas in which it is eligible. However, an applicant that does 
not certify its eligibility with respect to a particular license area 
because it is not eligible or it declines to do so will not be able to 
bid for reserved spectrum blocks in that PEA during the auction.
    205. Additional Default Payment. 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 FCC Form 601 post-auction application, fails to make 
full payment, or is otherwise disqualified) will be subject to the 
payments described in 47 CFR 1.2104(g)(2). The default payment consists 
of a deficiency payment, equal to the difference between the amount of 
the Auction 1002 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. 
For Auction 1002, the additional default payment will be 20 percent.

E. Steps Taken To Minimize the Significant Economic Impact on Small 
Entities, and Significant Alternatives Considered

    206. The RFA requires an agency to describe any significant 
alternatives beneficial to small entities considered in reaching a 
proposed approach, which may include the following four alternatives 
(among others): (1) Establishment of differing compliance or reporting 
requirements or timetables that take into account the resources 
available to small entities; (2) clarification, consolidation, or 
simplification for small entities of compliance and reporting 
requirements; (3) use of performance, rather than design, standards; 
and (4) an exemption for small entities. The procedures, terms, and 
conditions in the Auction 1000 Application Procedures PN correlate to 
those proposals and policies articulated in the Commission's orders 
governing Auction 1000, including Auctions 1001 and 1002. As such, a 
description of the steps taken to minimize the significant economic 
impact and the alternatives considered for these proposals can be found 
in the FRFA, Bidding Procedures PN SFRFA, MSH FRFA, and Part 1 FRFA.
    207. In the Auction 1000 Application Procedures PN, the Bureau 
describes the application procedures and instructions for Auctions 1001 
and 1002, along with the post-auction process, which are summarized in 
this supplemental

[[Page 66454]]

analysis. The policies adopted throughout the course of the incentive 
auction proceeding are consistent with the Commission's statutory 
obligations to ``ensure that small businesses, rural telephone 
companies, and businesses owned by members of minority groups and women 
are given the opportunity to participate in the provision of spectrum-
based services.'' The statute also directs the Commission to promote 
``economic opportunity and competition . . . by avoiding excessive 
concentration of licenses and by disseminating licenses among a wide 
variety of applicants, including small businesses.'' For instance, the 
Commission concluded in the Incentive Auction R&O that licensing on a 
PEA basis is consistent with the requirements of section 309(j) because 
it would promote spectrum opportunities for carriers of different 
sizes, including small businesses. Moreover, the Commission recently 
revised its designated entity rules to provide small businesses with 
more flexibility to find the capital needed for acquiring licenses in 
auctions by, for instance, eliminating the attributable material 
relationship rule (AMR rule) and increasing the gross revenue 
thresholds used for determining eligibility for small business bidding 
credits.
    208. For Auction 1000, the Bureau has taken steps to minimize the 
administrative burdens for applicants throughout the application 
process while providing small businesses with the opportunity to 
participate in the reverse and forward auctions. These steps include, 
but are not limited to: (1) Establishing auction Web sites as a central 
repository for auction information in addition to other Commission 
databases (e.g., ULS, CDBS) and making such online resources available 
at no charge for prospective applicants to research auction application 
and bidding procedures as well as Commission rules, policies, and other 
applicable decisions; (2) publishing public notices at key points of 
the reverse and forward auction processes to keep auction applicants 
informed of their application status, applicable auction requirements, 
and relevant deadlines; (3) organizing, for reverse auction applicants, 
several workshops to address the auction application and bidding 
processes; (4) providing web-based, interactive online tutorials for 
prospective bidders to walk through the auction process and the Auction 
System's application and bidding screens; (5) implementing a mock 
auction for all qualified bidders to obtain hands-on experience with 
the Commission's Auction System prior to the start of the reverse and 
forward auctions; (6) conducting both auctions electronically over the 
Internet using the Commission's Auction System to include providing 
online availability of round results and auction announcements; and (7) 
providing Commission staff to answer technical, legal, and other 
auction-related questions.
    209. Although the processes surrounding the implementation of 
Auction 1000 are unique, the timelines from the announcement of Auction 
1000 to the execution of the reverse and forward auctions were 
developed with the consideration of lowering costs and burdens of 
compliance with the Commission's competitive bidding and media rules 
for all applicants, including small businesses. Following the 
conclusion of Auction 1000, the Bureaus will continue to provide 
information and services to auction applicants to facilitate compliance 
with the Bureaus' competitive bidding and media rules in the form of 
additional public notices and continued support by Commission staff. In 
summary, a number of application procedures which will be implemented 
in Auction 1000 were designed to facilitate auction participation by 
all interested applicants, including small businesses.

Federal Communications Commission.
Gary D. Michaels,
Deputy Chief, Auctions and Spectrum Access Division, WTB.
[FR Doc. 2015-27621 Filed 10-28-15; 8:45 am]
 BILLING CODE 6712-01-P