Auction of FM Translator Construction Permits Scheduled for June 21, 2018; Notification of Filing Requirements, Minimum Opening Bids, Upfront Payments, and Other Procedures for Auction 83, 18441-18454 [2018-08635]
Download as PDF
Federal Register / Vol. 83, No. 82 / Friday, April 27, 2018 / Rules and Regulations
that Statement dated August 18, 1988,
July 26, 1989, August 15, 1991, October
11, 1991, July 28, 1994, May 30, 1997,
February 5, 2001, April 2, 2004, June 13,
2008 (including three certifications),
August 17, 2009, and May 22, 2012,
although not incorporated by reference,
are referenced as part of the authorized
hazardous waste management program
under subtitle C of RCRA, 42 U.S.C.
6921 et seq.
(7) Program Description. The Program
Description and any other materials
submitted as supplements thereto,
although not incorporated by reference,
are referenced as part of the authorized
hazardous waste management program
under subtitle C of RCRA, 42 U.S.C.
6921 et seq.
■ 3. Appendix A to part 272 is amended
by revising the listing for ‘‘New York’’
to read as follows:
Appendix A to Part 272—State
Requirements
jstallworth on DSKBBY8HB2PROD with RULES
*
*
*
*
*
New York
The regulatory provisions include:
Title 6, New York Codes, Rules and
Regulations (6 NYCRR), Chapter IV, Quality
Services, Subchapter B, Solid Wastes
(Volumes A–2 and A–2A), as amended
effective through September 5, 2006.
Please note: For a few regulations, the
authorized regulation is an earlier version of
the New York State regulation. For these
regulations, EPA authorized the version of
the regulations that appear in the Official
Compilation of Codes, Rules and Regulations
dated January 31, 1992. New York State made
later changes to these regulations but these
changes have not been authorized by EPA.
The regulations where the authorized
regulation is an earlier version of the
regulation are noted below by inclusion in
parentheses of January 31, 1992 after the
regulatory citations.
Part 360, Subpart 360–14—Used Oil:
Sections 360–14.1(b)(7) and 360–14.1(b)(8).
Part 370—Hazardous Waste Management
System—General: Sections 370.1(a) (except
(a)(3)); 370.1(b) through (d); 370.1(e) (except
(e)(9)); 370.1(f); 370.2(a); 370.2(b)(1) through
(b)(15) ‘‘battery’’; 370.2(b)(15) ‘‘bedrock’’,
(January 31, 1992); 370.2(b)(17) through
(b)(91); 370.2(b)(94) through (b)(125);
370.2(b)(127) through (b)(137); 370.2(b)(139)
through (b)(221); 370.3 (except 370.3(c));
370.4; 370.5 (except (b)).
Part 371—Identification and Listing of
Hazardous Waste: Sections 371.1(a) through
(c); 371.1(d) (except (d)(1)(ii)(c)); 371.1(e)
(except 371.1(e)(1)(xvi) and (e)(2)(vi)(b)(21));
371.1(f)(1) through (7); 371.1(f)(8) (except the
phrase ‘‘or such mixing occurs at a facility
regulated under Subpart 373–4 or permitted
under Part 373 of this Title’’); 371.1(f)(9) and
(f)(10); 371.1(g)(1) (except (g)(1)(ii)(c) and
(g)(1)(v)); 371.1(g)(2) through (4); 371.1(h)
through (j); 371.2; 371.3; 371.4(a) and (b);
371.4(c) (except K064, K065, K066, K090 and
K091 entries); 371.4(d) and (f).
VerDate Sep<11>2014
13:07 Apr 26, 2018
Jkt 244001
Part 372—Hazardous Waste Manifest
System and Related Standards for Generators,
Transporters and Facilities: Sections 372.1(a)
through (d); 372.1(e)(2)(ii)(c) (January 31,
1992); 372.1(e)(2)(iii)(c) (January 31, 1992);
372.1(e)(3) through (e)(8); 372.1(g) and (h);
372.2 (except (b)(5)(ii) and (b)(9)); 372.3
(except (a)(1), (a)(4), (a)(7)(i), (a)(8), (b)(3),
(b)(5)(ii), (b)(6)(iv), (b)(7)(i)(d), (c)(4) and
(d)(3)); 372.5 (except (h) and (i); 372.6;
372.7(a) and (b); 372.7(c) (except (c)(1)(ii));
and 372.7(d).
Part 373, Subpart 373–1—Hazardous Waste
Treatment, Storage and Disposal Facility
Permitting Requirements: Sections 373–1.1(a)
through (c), 373–1.1(d) (except (d)(1)(iii)(b),
(d)(1)(iii)(c)(6), (d)(1)(iii)(d), (d)(1)(iv)(a) and
(b), (d)(1)(x), (d)(1)(xvi), and (d)(1)(xviii));
373–1.1(e); 373–1.1(h) and (i); 373–1.2; 373–
1.3; 373–1.4(a); 373–1.4(g) and (h); 373–1.5(a)
(except (a)(2)(xviii)); 373–1.5(b) and (c); 373–
1.5(d) through (p) (except reserved
paragraphs); 373–1.6 (except (c)); 373–1.7
through 373–1.11.
Part 373, Subpart 373–2—Final Status
Standards for Owners and Operators of
Hazardous Waste Treatment, Storage and
Disposal Facilities: Sections 373–2.1 through
373–2.4; 373–2.5(a); 373–2.5(b) (except
(b)(1)(i)(c), (b)(3)(ii)(d) and (b)(3)(ii)(e)); 373–
2.5(c) through (g); 373–2.6 through 373–2.11;
373–2.12 (except 373–2.12(a)(1) and (d));
373–2.12(a)(1) (January 31, 1992); 373–2.13;
373–2.14; 373–2.15 (except (a)(2)); 373–2.19
(except (e)(1)(ii)); 373–2.23; 373–2.24; and
373–2.27 through 373–2.31.
Part 373, Subpart 373–3—Interim Status
Standards Regulations for Owners and
Operators of Hazardous Waste Facilities:
Sections 373–3.1 (except 373–3.1(a)(4)); 373–
3.2 through 373–3.4; 373–3.5 (except 373–
3.5(b)(1)(i)(c), (b)(3)(ii)(d) and (b)(3)(ii)(e));
373–3.6 through 373–3.18; 373–3.23; and
373–3.27 through 373–3.31.
Part 374, Subpart 374–1—Standards for the
Management of Specific Hazardous Wastes
and Specific Types of Hazardous Waste
Management Facilities: Sections 374–1.1;
374–1.3; 374–1.6 (except (a)(2)(iii)); 374–1.7;
374–1.8 (except reserved sections); 374–1.9;
and 374–1.13.
Part 374, Subpart 374–2—Standards for the
Management of Used Oil: Sections 374–2.1
(except (a)(2) ‘‘Adjacent towns or cities’’,
(a)(4) ‘‘Contract’’, (a)(10) ‘‘On-premises oil
changing operation’’, (a)(14) ‘‘Retail’’, (a)(15)
‘‘Retail establishment’’, (a)(16) ‘‘Service
establishment’’, (a)(18) ‘‘Total halogens’’,
(a)(19) ‘‘Underground used oil tank’’, and
(a)(27) ‘‘Used oil tank system’’); 374–2.2;
374–2.3 (except (c)(3) through (c)(6), and (f));
374–2.4; 374–2.5 (except (a)(2) and (e)(4));
374–2.6 (except (a)(2) and (d)(4)); 374–2.7
(except (d)(4), (e)(5) and (e)(6)); 374–2.8; and
374–2.9.
Part 374, Subpart 374–3—Standards for
Universal Waste: Sections 374–3.1 (except (f)
and (g)); 374–3.2; 374–3.3; 374–3.4 (except
(a)(2)); and 374–3.5 through 374–3.7.
Part 376—Land Disposal Restrictions:
Sections 376.1 (except (a)(5), (a)(9), (e), (f),
and (g)(1)(ii)(b)); 376.2; 376.3 (except (b)(4)
and (d)(2)); 376.4 (except (c)(2), (e)(1)–(7),
and (f)); and 376.5.
Appendices: Appendices 19 through 25;
Appendices 27 through 30; Appendix 33;
PO 00000
Frm 00043
Fmt 4700
Sfmt 4700
18441
Appendix 37; Appendix 38; Appendices 40
through 49; and Appendices 51 through 55.
Copies of the New York regulations that are
incorporated by reference are available from
West Publishing Company, 610 Opperman
Drive, P.O. Box 64526, Eagan, MN 55134–
0526; Phone: 1–800–328–4880; website:
https://west.thomson.com.
*
*
*
*
*
[FR Doc. 2018–08431 Filed 4–26–18; 8:45 am]
BILLING CODE 6560–50–P
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Centers for Medicare & Medicaid
Services
42 CFR Part 438
Managed Care
CFR Correction
In Title 42 of the Code of Federal
Regulations, Parts 430 to 481, revised as
of October 1, 2017, on page 295, in
§ 438.214, paragraph (c) [Reserved] is
removed and ‘‘(2) [Reserved]’’ is added
in its place.
■
[FR Doc. 2018–09060 Filed 4–26–18; 8:45 am]
BILLING CODE 1301–00–D
FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Parts 1, 73 and 74
[AU Docket No. 17–351; DA 18–257]
Auction of FM Translator Construction
Permits Scheduled for June 21, 2018;
Notification of Filing Requirements,
Minimum Opening Bids, Upfront
Payments, and Other Procedures for
Auction 83
Federal Communications
Commission.
ACTION: Final action; requirements and
procedures.
AGENCY:
In this document, the
Commission summarizes the procedures
and announces upfront payments
amounts and minimum opening bids for
the auction of FM translator
construction permits (Auction 83). The
document summarized here is intended
to familiarize applicants with the
procedures and other requirements for
participation in the auction.
DATES: April 16, 2018, and until 6:00
p.m. Eastern Time (ET) on April 26,
2018, each Auction 83 applicant must
review, verify or update its previouslyfiled short-form applications (FCC
Forms 175) electronically. Bidding in
SUMMARY:
E:\FR\FM\27APR1.SGM
27APR1
18442
Federal Register / Vol. 83, No. 82 / Friday, April 27, 2018 / Rules and Regulations
Auction 83 is scheduled to start on June
21, 2018.
FOR FURTHER INFORMATION CONTACT: For
auction legal questions, Lynne Milne in
the Wireless Telecommunications
Bureau’s Auctions and Spectrum Access
Division at (202) 418–0660. For auction
process and procedures, the FCC
Auction Hotline at (717) 338–2868. For
FM translator service questions, James
Bradshaw, Lisa Scanlan or Tom
Nessinger in the Media Bureau’s Audio
Division at (202) 418–2700. To request
materials in accessible formats (Braille,
large print, electronic files, or audio
format) for people with disabilities,
send an email to fcc504@fcc.gov or call
the Consumer and Governmental Affairs
Bureau at (202) 418–0530 or (202) 418–
0432 (TTY).
SUPPLEMENTARY INFORMATION: This is a
summary of Commission’s document
(Auction 83 Procedures Public Notice),
AU Docket No. 17–351; DA 18–257,
released on March 16, 2018. The
complete text of this document is
available for public inspection and
copying from 8:00 a.m. to 4:30 p.m. ET
Monday through Thursday or from 8:00
a.m. to 11:30 a.m. ET on Fridays in the
FCC Reference Information Center, 445
12th Street SW, Room CY–A257,
Washington, DC 20554. The complete
text of this document and related
documents also are available on the
internet at the Commission’s website:
https://wireless.fcc.gov/auctions/83, or
by using the search function for AU
Docket No. 17–351 on the Commission’s
Electronic Comment Filing System
(ECFS) web page at https://www.fcc.gov/
cgb/ecfs.
jstallworth on DSKBBY8HB2PROD with RULES
I. General Information
A. Background
1. On February 6, 2003, the Media and
Wireless Telecommunications Bureaus
announced an auction filing window for
applications for new FM translator
stations and major modifications to
authorized FM translator facilities in the
non-reserved band (Channels 221 to
300). By Public Notices released May
21, 2013 and April 30, 2014, the
Bureaus provided a list of all
applications received during the filing
window with engineering proposals that
were mutually exclusive (MX) with
engineering proposals in other
applications submitted in the filing
window. Applicants were previously
given the opportunity to eliminate their
mutual exclusivity with other
applicants’ engineering proposals by
settlement or technical modification to
their proposals. The Bureaus will now
proceed to auction with the 43 MX
groups identified in Attachment A of
VerDate Sep<11>2014
13:07 Apr 26, 2018
Jkt 244001
the Auction 83 Procedures Public
Notice.
B. Construction Permits and Entities
Eligible To Participate in Auction 83
2. Auction 83 will resolve mutually
exclusive applications for up to 43 new
FM translator construction permits. A
list of the locations and channels of
these proposed stations is included as
Attachment A to the Auction 83
Procedures Public Notice. Attachment A
also sets forth the names of applicants
in each MX group along with a
minimum opening bid and an upfront
payment amount for each construction
permit in Auction 83.
3. An applicant listed in Attachment
A may become qualified to bid only if
it meets the additional filing,
qualification and payment requirements
and otherwise complies with applicable
requirements described in the Auction
83 Procedures Public Notice. Each
applicant may become a qualified
bidder only for those construction
permits specified for that applicant in
Attachment A to the Auction 83
Procedures Public Notice. Each of the
engineering proposals within each MX
group are directly mutually exclusive
with one another; therefore, no more
than one construction permit will be
awarded for each MX group identified
in Attachment A. Once mutually
exclusive applications are accepted,
because mutual exclusivity exists for
auction purposes, an applicant for a
particular construction permit cannot
obtain it without placing a bid, even if
no other applicant for that construction
permit becomes qualified to bid or in
fact places a bid. While the Auction 83
Comment Public Notice had sought
comment on whether certain changes
made since 2003 to 47 CFR 1.2105
warranted any different approach in this
context, no commenter directly
addressed this issue. The Bureaus do
not see any reason to depart from
established precedent for Auction 83.
4. Section 1.2105(b)(2) provides that
an auction applicant that undertakes a
major change, including a change of
ownership that would constitute an
assignment or transfer of control, after
the short-form application filing
deadline will be disqualified from
participating in bidding. In the Auction
83 Comment Public Notice (see 83 FR
4455, Jan. 31, 2018), the Bureaus sought
comment on whether to waive 47 CFR
1.2105(b)’s prohibition on major
changes with respect to transfers of
control or assignments that had
occurred prior to release of the Auction
83 Comment Public Notice and/or that
have been subject to Commission review
and approval by a particular date. In
PO 00000
Frm 00044
Fmt 4700
Sfmt 4700
response to the Auction 83 Comment
Public Notice, iHeart, the parent
company of three Auction 83
applicants, filed comments supporting
grant of waivers of 47 CFR 1.2105(b)(2)’s
bar on major modifications to allow
iHeart applicants to participate in
Auction 83, and one applicant filed an
opposition seeking denial of the
requested relief.
5. The Bureaus decided that under the
unique factual circumstances,
application of the rule would be unduly
burdensome to Auction 83 applicants
that have completed a transfer of control
or assignment that was authorized by
the Commission during a period of
approximately 15 years. In accordance
with 47 CFR 1.3, the Bureaus waive 47
CFR 1.2105(b)(2)’s bar on major
modifications for any Auction 83
applicant, such as iHeart or any other
similarly-situated party, that has
completed a transfer of control or
assignment pursuant to a transaction
that has been reviewed and approved by
the Commission prior to the close of the
remedial filing window on April 26,
2018. An applicant seeking to
participate in Auction 83 pursuant to
this relief should include with its
updated Form 175 during the upcoming
remedial filing window a brief
explanation of any changes it has
undertaken during the pendency of its
Form 175, including relevant details
such as citations to or file numbers of
Commission authorizations for such
changes.
6. In light of the amendments to the
Commission’s competitive bidding rules
in 2015, the Bureaus also sought
comment in the Auction 83 Comment
Public Notice on how to apply 47 CFR
1.2105’s provisions that prohibit the
filing of multiple auction applications
by applicants subject to common
control. The amended rules require
entities with any overlapping
controlling interest to participate in an
auction through just a single auction
application. The only party to address
this issue, iHeart, supports the Bureaus
proposal to require applicants subject to
common control to participate through
a single bidding entity in a single
application covering all of the MX
engineering proposals applied for
previously by the separate commonly
controlled applicants. The Bureaus
waived the current rule’s application to
the originally filed Forms 175, which
pre-dated the current rule by more than
a decade, and to permit applicants to
come into compliance with the current
rule by modifying the relevant auction
applications as necessary to come into
compliance. Accordingly, any Auction
83 applicants with overlapping
E:\FR\FM\27APR1.SGM
27APR1
Federal Register / Vol. 83, No. 82 / Friday, April 27, 2018 / Rules and Regulations
controlling interests will be permitted to
amend their Forms 175 to participate as
a single bidding entity. Specifically, on
or before March 30, 2018, applicants
that have a controlling interest in more
than one Form 175 listed in Attachment
A to the Auction 83 Procedures Public
Notice were required to bring those
commonly controlled applications into
compliance with the restrictions of 47
CFR 1.2105(a)(3) by filing a written
request as an attachment to an email
sent to auction83@fcc.gov. This written
request was required to identify by
applicant name and applicant FCC
registration number (FRN) each of that
applicant’s 2003 Forms 175 listed in
Attachment A in which there is
common control, as well as
identification of the individual or entity
with such common control. This email
was required to request consolidation of
the previously filed Forms 175 in
Attachment A with common control.
The request had to be signed by a
person who is an authorized
representative of the applicant with
authority to bind that applicant. After
consolidation, the remaining single
applicant was required to update, certify
and submit its FCC Form 175 during the
remedial filing window.
jstallworth on DSKBBY8HB2PROD with RULES
C. Rules and Disclaimers
1. Relevant Authority
7. Applicants must familiarize
themselves thoroughly with the
Commission’s general competitive
bidding rules, including Commission
decisions in proceedings regarding
competitive bidding procedures,
application requirements, and
obligations of Commission licensees.
Broadcasters should also familiarize
themselves with the Commission’s
commercial FM translator broadcast
service and competitive bidding
requirements contained in 47 CFR parts
73 and 74, as well as Commission orders
concerning competitive bidding.
Applicants must also be thoroughly
familiar with the procedures, terms and
conditions contained in the Auction 83
Procedures Public Notice and any future
public notices that may be released in
this proceeding.
8. The terms contained in the
Commission’s rules, relevant orders,
and public notices are not negotiable.
The Commission may amend or
supplement the information contained
in their public notices at any time, and
will issue public notices to convey any
new or supplemental information to
applicants. It is the responsibility of
each applicant to remain current with
all Commission rules and with all
public notices pertaining to Auction 83.
VerDate Sep<11>2014
13:07 Apr 26, 2018
Jkt 244001
2. Prohibited Communications and
Compliance With Antitrust Laws
9. Starting with the initial application
filing deadline on March 17, 2003, the
rules prohibiting certain
communications set forth in 47 CFR
1.2105(c) and 73.5002(d) and (e) apply
to each applicant that filed a FCC Form
175 in Auction 83. Subject to specified
exceptions, 47 CFR 1.2105(c)(1)
provides that, after the deadline for
filing a short-form application, all
applicants are prohibited from
cooperating or collaborating with
respect to, communicating with or
disclosing, to each other in any manner
the substance of their own, or each
other’s, or any other applicants’ bids or
bidding strategies (including postauction market structure), or discussing
or negotiating settlement agreements,
until after the down payment deadline.
Applicants are hereby placed on notice
that public disclosure of information
relating to bids, bidding strategies, or to
post-auction market structures may
violate 47 CFR 1.2105(c).
a. Entities Subject to Section 1.2105
10. An applicant for purposes of this
rule includes the officers and directors
of the applicant, all controlling interests
in the entity submitting the FCC Form
175, as well as all holders of interests
amounting to 10 percent or more of the
entity, and all officers and directors of
that entity. A party that submits an
application becomes an applicant under
the rule at the application deadline and
that status does not change based on
subsequent developments. Thus, an
auction applicant that does not make
and submit update to its Form 175
during the upcoming remedial filing
window, correct deficiencies in its
application, fails to submit a timely and
sufficient upfront payment or does not
otherwise become qualified, remains an
applicant for purposes of 47 CFR
1.2105(c) and remains subject to the
prohibition on certain communications
until the applicable down payment
deadline.
b. Scope of Prohibition on
Communications; Prohibition on Joint
Bidding Agreements
11. The Commission in 2015 amended
47 CFR 1.2105(c) to extend its
prohibition on communications to cover
all applicants for an auction regardless
of whether the applicants seek permits
in the same geographic area or market.
Accordingly, the Commission now
prohibits joint bidding arrangements,
including arrangements relating to the
licenses being auctioned that address or
communicate, directly or indirectly,
PO 00000
Frm 00045
Fmt 4700
Sfmt 4700
18443
bids, bidding at the auction, bidding
strategies, including arrangements
regarding price or the specific
construction permits or licenses on
which to bid, and any such
arrangements relating to the postauction market structure. The revised
rule provides limited exceptions for
communications within the scope of
any arrangement consistent with the
exclusions from the Commissions rule
prohibiting joint bidding, provided such
arrangement is disclosed on the
applicant’s auction application. An
applicant may continue to communicate
pursuant to any pre-existing agreement,
arrangement, or understanding that is
solely operational or that provide for a
transfer or assignment of licenses,
provided that such agreement,
arrangement or understanding does not
involve the communication or
coordination of bids (including
amounts), bidding strategies, or the
particular licenses on which to bid and
provided that such agreement,
arrangement or understanding is
disclosed on its application.
12. In the Auction 83 Comment Public
Notice, the Bureaus sought comment on
whether waiver of certain provisions of
47 CFR 1.2105 might be appropriate or
necessary in light of the passage of time
since the 2003 filing of the original
Auction 83 Forms 175, the rule
revisions in 2015, and the business
changes that applicants may have
undergone. The Bureaus noted that
some Auction 83 applicants and their
pending applications might not be in
compliance with the current 47 CFR
1.2105 provisions regarding joint
bidding agreements and auction-related
communications. No comment was filed
on this issue in response to the Auction
83 Comment Public Notice. No party has
filed notice of any potential violation of
the provisions of 47 CFR 1.2105(c) with
respect to prohibited bidding
agreements or communications.
Consequently, the Bureaus find no
cause to waive the relevant rules.
c. Section 1.2105(c) Certification
13. By electronically submitting its
Form 175, each applicant in Auction 83
certified its compliance with 47 CFR
1.2105(c) and 73.5002(d). However, the
mere filing of a certifying statement as
part of an application will not outweigh
specific evidence that a prohibited
communication has occurred, nor will it
preclude the initiation of an
investigation when warranted. Any
applicant found to have violated these
communication prohibitions may be
subject to sanctions.
E:\FR\FM\27APR1.SGM
27APR1
18444
Federal Register / Vol. 83, No. 82 / Friday, April 27, 2018 / Rules and Regulations
d. Reporting Requirements
14. Section 1.2105(c)(4) requires that
any applicant that makes or receives a
communication that appears to violate
47 CFR 1.2105(c) must report such
communication in writing to the
Commission immediately, and in no
case later than five business days after
the communication occurs. Each
applicant’s obligation to report any such
communication continues beyond the
five-day period after the communication
is made, even if the report is not made
within the five-day period.
jstallworth on DSKBBY8HB2PROD with RULES
e. Procedures for Reporting Prohibited
Communications
15. Section 1.2105(c) requires parties
to file only a single report concerning a
prohibited communication and to file
that report with Commission personnel
expressly charged with administering
the Commission’s auctions. Any reports
required by 47 CFR 1.2105(c) must be
filed consistent with the instructions set
forth in the Auction 83 Procedures
Public Notice. For Auction 83, such
reports must be filed with the Chief of
the Auctions and Spectrum Access
Division, Wireless Telecommunications
Bureau, by the most expeditious means
available. Any such report should be
submitted by email to Margaret W.
Wiener at the following email address:
auction83@fcc.gov. If you choose
instead to submit a report in hard copy,
any such report must be delivered only
to: Margaret W. Wiener, Chief, Auctions
and Spectrum Access Division, Wireless
Telecommunications Bureau, Federal
Communications Commission, 445 12th
Street SW, Room 6C217, Washington,
DC 20554.
16. Section 1.2105(c) is designed to
minimize the risk of inadvertent
dissemination of information in such
reports. A party reporting any
communication pursuant to 47 CFR
1.65, 1.2105(a)(2), or 1.2105(c)(4) must
take care to ensure that any report of a
prohibited communication does not
itself give rise to a violation of 47 CFR
1.2105(c). For example, a party’s report
of a prohibited communication could
violate the rule by communicating
prohibited information to other
applicants through the use of
Commission filing procedures that
would allow such materials to be made
available for public inspection, such as,
a submission to the Commission’s Office
of the Secretary or to the Commission’s
Electronic Comment Filing System. A
party seeking to report such a prohibited
communication should consider
submitting its report with a request that
the report or portions of the submission
be withheld from public inspection by
VerDate Sep<11>2014
13:07 Apr 26, 2018
Jkt 244001
following the procedures specified in 47
CFR 0.459. Such parties also are
encouraged to coordinate with the
Auctions and Spectrum Access Division
staff about the procedures for submitting
such reports.
f. Winning Bidders Must Disclose Terms
of Agreements
17. Each applicant that is a winning
bidder will be required to disclose in its
long-form application the specific terms,
conditions, and parties involved in any
agreement it has entered into. This
applies to any bidding consortia, joint
venture, partnership, or agreement,
understanding, or other arrangement
entered into relating to the competitive
bidding process, including any
agreement relating to the post-auction
market structure. Failure to comply with
the Commission’s rules can result in
enforcement action.
g. Antitrust Laws
18. Regardless of compliance with the
Commission’s rules, applicants remain
subject to the antitrust laws, which are
designed to prevent anticompetitive
behavior in the marketplace.
Compliance with the disclosure
requirements of 47 CFR 1.2105(c) will
not insulate a party from enforcement of
the antitrust laws.
19. To the extent the Commission
becomes aware of specific allegations
that suggest that violations of the federal
antitrust laws may have occurred, the
Commission may refer such allegations
to the U.S. Department of Justice for
investigation. If an applicant is found to
have violated the antitrust laws or the
Commission’s rules in connection with
its participation in the competitive
bidding process, the applicant may be
subject to forfeiture of its upfront
payment, down payment, or full bid
amount and may be prohibited from
participating in future auctions, among
other sanctions.
3. Due Diligence
20. The Bureaus remind each
potential bidder that it is solely
responsible for investigating and
evaluating all technical and marketplace
factors that may have a bearing on the
value of the construction permits for
commercial FM translators that it is
seeking in this auction. The FCC makes
no representations or warranties about
the use of this spectrum or these
construction permits for particular
services. Applicants should be aware
that an FCC auction represents an
opportunity to become an FCC
permittee in a broadcast service, subject
to certain conditions and regulations.
An FCC auction does not constitute an
PO 00000
Frm 00046
Fmt 4700
Sfmt 4700
endorsement by the FCC of any
particular service, technology, or
product, nor does an FCC construction
permit or license constitute a guarantee
of business success.
21. An applicant should perform its
due diligence research and analysis
before proceeding, as it would with any
new business venture. In particular, the
Bureaus strongly encourage each
potential bidder to perform technical
analyses and/or refresh its previous
analyses to assure itself that, should it
become a winning bidder for any
Auction 83 construction permit, it will
be able to build and operate facilities
that will fully comply with all
applicable technical and legal
requirements. The Bureaus strongly
encourage each applicant to inspect any
prospective transmitter sites located in,
or near, the service area for which it
plans to bid, confirm the availability of
such sites, and to familiarize itself with
the Commission’s rules regarding the
National Environmental Policy Act.
22. The Bureaus strongly encourage
each applicant to continue to conduct
its own research throughout Auction 83
in order to determine the existence of
pending or future administrative or
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 83 (or the terms and conditions
thereof, including all applicable
Commission rules and regulations) and
might affect an applicant’s decision on
continued participation in the auction.
Each applicant is responsible for
assessing the likelihood of the various
possible outcomes and for considering
the potential impact on construction
permits available in this auction. The
due diligence considerations mentioned
in the Auction 83 Procedures Public
Notice do not comprise an exhaustive
list of steps that should be undertaken
prior to participating in this auction. As
always, the burden is on the potential
bidder to determine how much research
to undertake, depending upon specific
facts and circumstances related to its
interests.
23. Applicants are solely responsible
for identifying associated risks and for
investigating and evaluating the degree
to which such matters may affect their
ability to bid on, otherwise acquire, or
make use of the construction permits
available in Auction 83. Each potential
bidder is responsible for undertaking
research to ensure that any permits won
E:\FR\FM\27APR1.SGM
27APR1
Federal Register / Vol. 83, No. 82 / Friday, April 27, 2018 / Rules and Regulations
in Auction 83 will be suitable for its
business plans and needs. Each
potential bidder must undertake its own
assessment of the relevance and
importance of information gathered as
part of its due diligence efforts.
24. The Commission makes no
representations or guarantees regarding
the accuracy or completeness of
information in its databases or any third
party databases, including, for example,
court docketing systems. To the extent
the Commission’s databases may not
include all information deemed
necessary or desirable by an applicant,
it must obtain or verify such
information from independent sources
or assume the risk of any
incompleteness or inaccuracy in said
databases. Furthermore, the
Commission makes no representations
or guarantees regarding the accuracy or
completeness of information that has
been provided by incumbent licensees
and incorporated into its databases.
4. Use of Auction Systems
25. The Commission makes no
warranty whatsoever with respect to the
FCC auction systems. In no event shall
the Commission, or any of its officers,
employees, or agents, be liable for any
damages whatsoever (including, but not
limited to, loss of business profits,
business interruption, loss of business
information, or any other loss) arising
out of or relating to the existence,
furnishing, functioning, or use of the
FCC auction systems that are accessible
to qualified bidders in connection with
this auction. Moreover, no obligation or
liability will arise out of the
Commission’s technical, programming,
or other advice or service provided in
connection with the FCC auction
systems.
D. Auction Specifics
jstallworth on DSKBBY8HB2PROD with RULES
1. Bidding Methodology and Options
26. The Commission will conduct this
auction over the internet using the FCC
auction bidding system. Qualified
bidders are permitted to bid
electronically via the internet or by
telephone using the telephonic bidding
option. All telephone calls are recorded.
27. The initial schedule for bidding
rounds will be announced by public
notice at least one week before bidding
in the auction starts. Moreover, unless
otherwise announced, bidding on all
construction permits will be conducted
on each business day until bidding has
stopped on all construction permits.
2. Pre-Auction Dates and Deadlines
28. The following dates and deadlines
apply:
VerDate Sep<11>2014
13:07 Apr 26, 2018
Jkt 244001
Auction Tutorial Available (via
internet)—April 12, 2018
Short-Form Application (FCC Form 175)
Remedial Filing Window Opened—
April 16, 2018; 12:00 noon ET
Short-Form Application (FCC Form 175)
Remedial Filing Window Deadline—
April 26, 2018; prior to 6:00 p.m. ET
Upfront Payments (via wire transfer)—
May 31, 2018; 6:00 p.m. ET
Mock Auction—June 15, 2018
Auction Begins—June 21, 2018
3. Requirements for Participation
29. A party whose application is
listed on Attachment A of the Auction
83 Procedures Public Notice may
participate in the bidding in Auction 83
only if the applicant:
• During the remedial filing window,
provides sufficient information in the
data fields of its electronic FCC Form
175 that it is able to certify and submit
its auction application. Instructions for
submitting an updated application are
provided in the Auction 83 Procedures
Public Notice.
Æ In the event that the application is
found to be incomplete after
Commission staff review, an applicant
will have a limited opportunity to
address deficiencies in its application
during a resubmission window, the
dates for which will be announced in a
future public notice.
Æ If an applicant fails to provide
sufficient information in the data fields
of its electronic Form 175 the applicant
therefore will not able to certify and
submit its Form 175. If an Auction 83
applicant fails to certify and submit its
Form 175 during the remedial window,
that auction application will be
designated as Incomplete-Disqualified.
If an application is designated as
Incomplete-Disqualified, that applicant
will have no further opportunity to
update its application, and the applicant
will be disqualified from further
participation in Auction 83.
• Submits a sufficient upfront
payment and an FCC Remittance Advice
Form (FCC Form 159) by 6:00 p.m. ET
on May 31, 2018, following the
procedures and instructions set forth in
Attachment C to the Auction 83
Procedures Public Notice; and
• Complies with all provisions
outlined in the Auction 83 Procedures
Public Notice and applicable
Commission rules.
PO 00000
Frm 00047
Fmt 4700
Sfmt 4700
18445
II. Short-Form Application (FCC Form
175) Requirements
A. Updating Applicant’s FCC Form 175
in Auction Application System—
Remedial Filing Window Closes April
26, 2018
30. To qualify to participate in
bidding, each Auction 83 applicant
must provide sufficient information in
the data fields of its electronic FCC
Form 175 that it is able to certify and
submit its auction application, in
compliance with the Commission’s
competitive bidding rules and the
procedures and deadlines set forth in
the Auction 83 Procedures Public
Notice. Attachment B of the Auction 83
Procedures Public Notice contains
detailed instructions for updating and
verifying short-form applications.
31. Applicants must make necessary
updates and certifications, and must
verify short-form application
information during a remedial filing
window. The window opened at noon
ET on April 16, 2018, and will close at
6:00 p.m. ET on April 26, 2018.
32. Each Auction 83 applicant is
required to review its FCC Form 175 in
the auction application system to insure
that all relevant information is provided
and that the information contained in
the application is accurate and complete
at this time. Each applicant must
provide updates or revisions of
previously submitted information,
consistent with the requirements of 47
CFR 1.65. The auction application
system will permit an applicant to
navigate to the certify and submit screen
in its Form 175 only after providing
required disclosures of information in
specified data entry fields. An applicant
may also be required to upload an
attachment to its Form 175 application
in some circumstances. Each applicant
is advised to begin its application
updating process early during the
remedial filing window so that it can
certify and submit its FCC Form 175
prior to the close of the remedial filing
window. Each Auction 83 applicant
must certify and submit any updates
prior to 6:00 p.m. ET on April 26, 2018.
B. Minor Modifications to Short-Form
Applications
33. Notwithstanding the relief from 47
CFR 1.2105(b)’s major change restriction
for past transactions as discussed in the
Auction 83 Procedures Public Notice, at
this stage in the application process, an
Auction 83 applicant is permitted to
make only minor changes to its
application. Permissible minor changes
include, among other things, deletion
and addition of authorized bidders (to a
maximum of three) and revision of
E:\FR\FM\27APR1.SGM
27APR1
18446
Federal Register / Vol. 83, No. 82 / Friday, April 27, 2018 / Rules and Regulations
addresses and telephone numbers of the
applicants and their contact persons. If
revised or updated information
constitutes a ‘‘major amendment,’’ as
defined by 47 CFR 1.2105, such changes
may result in the dismissal of the
application. In this context, major
amendments include a change of
technical proposals, change control of
the applicant, claim eligibility for a
higher percentage of bidding credit, or
change the identification of the
application’s proposed facilities as
noncommercial educational after the
initial application filing deadline.
jstallworth on DSKBBY8HB2PROD with RULES
C. Maintaining Current Information in
Short-Form Applications
34. As required by 47 CFR 1.65 and
1.2105(b), an applicant must maintain
the accuracy and completeness of all
information furnished in its pending
application and in competitive bidding
proceedings to furnish additional or
corrected information to the
Commission within five days of a
significant occurrence, or to amend a
short form application no more than five
days after the applicant becomes aware
of the need for the amendment. Changes
that cause a loss of or reduction in the
percentage of bidding credit specified in
the application must be reported
immediately, and no later than five
business days after the change occurs.
D. Submission of Updates to Short-Form
Applications
35. Updates to short-form applications
should be made electronically using the
FCC auction application system
whenever possible. For the change to be
submitted and considered by the
Commission, be sure to click on the
SUBMIT button.
36. An applicant can use the auction
application system outside of the
remedial and resubmission filing
windows to make administrative and
certain other changes to its short-form
application. After the resubmission
filing window has closed, the system
will permit applicants to modify
information in most of the application’s
data fields.
37. If changes need to be made
outside of these windows, the applicant
must submit a letter briefly
summarizing the changes and
subsequently update its short-form
application in the auction application
system. Any letter describing changes to
an applicant’s short-form application
must be addressed to Margaret W.
Wiener, Chief, Auctions and Spectrum
Access Division, Wireless
Telecommunications Bureau, and
submitted by email to auction83@
fcc.gov. The email summarizing the
VerDate Sep<11>2014
13:07 Apr 26, 2018
Jkt 244001
changes must include a subject or
caption referring to Auction 83 and the
name of the applicant, for example, ‘‘Re:
Changes to Auction 83 Short-Form
Application of ABC Corp.’’ The Bureaus
request that parties format any
attachments to email as Adobe®
Acrobat® (pdf) or Microsoft® Word
documents. Questions about short-form
application amendments should be
directed to the Auctions and Spectrum
Access Division at (202) 418–0660.
38. Applicants must not submit
application-specific material through
the Commission’s Electronic Comment
Filing System, which was used for
submitting comments regarding
procedures for conducting Auction 83.
39. Applicants should note that
submission of a short-form application
(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. Applicants are
reminded that submission of a false
certification to the Commission is a
serious matter that may result in severe
penalties, including monetary
forfeitures, license revocations,
exclusion from participation in future
auctions, and/or criminal prosecution.
E. Electronic Review of Short-Form
Applications
40. During the remedial filing
window, an applicant listed in
Attachment A of the Auction 83
Procedures Public Notice must review
and update its electronic FCC Form 175
in the auction application system. There
is no fee to access this system. See
Attachment B of the Auction 83
Procedures Public Notice for details on
accessing the auction application
system. During the remedial filing
window, each Auction 83 applicant
listed in Attachment A must, at a
minimum, certify and submit its Form
175.
F. Provisions Regarding Former and
Current Defaulters
41. 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 83. An applicant
is considered a current defaulter or a
current delinquent when it, any of its
affiliates (as defined by 47 CFR 1.2110),
any of its controlling interests, or any of
PO 00000
Frm 00048
Fmt 4700
Sfmt 4700
the affiliates of its controlling interests,
is in default on any payment for any
Commission construction permit or
license (including a down payment) or
is delinquent on any non-tax debt owed
to any Federal agency as of the filing
deadline for FCC Forms 175 in that
auction. Accordingly, each applicant
must certify under penalty of perjury on
its Form 175 that the applicant, any of
its affiliates, any of its controlling
interests, and any of the affiliates of its
controlling interests are not in default
on any payment for a Commission
construction permit or license
(including a down payment) and are not
delinquent on any non-tax debt owed to
any Federal agency. For purposes of
making this certification, the term
controlling interest is defined in 47 CFR
1.2105(a)(4)(i). If an Auction 83
applicant has an outstanding non-tax
debt to the Commission or any other
federal agency, including any debts that
results in a listing of the applicant on
the Commission’s Red Light Display
System, as of the closing deadline of the
remedial filing window, the applicant
will be unable to make the required
certification that it is not currently in
default; if so, such applicant will be not
eligible to participate in Auction 83
bidding.
42. An Auction 83 applicant is
considered a former defaulter or a
former delinquent when the applicant
or any of its controlling interests (as
defined by 47 CFR 1.2105(a)(4)(i)) has
defaulted on any Commission
construction permit or license
(including a down payment) 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 prior to the remedial
filing deadline in this auction. A former
defaulter or a former delinquent may
participate further in Auction 83 so long
as it is otherwise qualified, and that
applicant makes an upfront payment
that is 50 percent more than would
otherwise be required. An applicant
must certify under penalty of perjury
whether it, along with any of its
controlling interests, has ever been in
default on any payment for a
Commission construction permit or
license (including a down payment) or
has ever been delinquent on any non-tax
debt owed to any Federal agency,
subject to the exclusions described in
the Auction 83 Procedures Public
Notice.
43. In 2015, the Commission
narrowed the scope of the individuals
and entities to be considered a former
defaulter or a former delinquent. For
purposes of the certification under 47
E:\FR\FM\27APR1.SGM
27APR1
jstallworth on DSKBBY8HB2PROD with RULES
Federal Register / Vol. 83, No. 82 / Friday, April 27, 2018 / Rules and Regulations
CFR 1.2105(a)(2)(xii), the applicant may
exclude from consideration any cured
default on a Commission construction
permit or 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 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.
44. Applicants are encouraged to
review previous guidance provided by
the Wireless Telecommunications
Bureau on default and delinquency
disclosure requirements in the context
of the auction short-form application
process. For example, it has been
determined that, to the extent that
Commission rules permit late payment
of regulatory or application fees
accompanied by late fees, such debts
will become delinquent for purposes of
47 CFR 1.2105(a) and 1.2106(a) only
after the expiration of a final payment
deadline. Therefore, with respect to
regulatory or application fees, the
provisions of 47 CFR 1.2105(a) and
1.2106(a) regarding default and
delinquency in connection with
competitive bidding are limited to
circumstances in which the relevant
party has not complied with a final
Commission payment deadline. Parties
are also encouraged to consult with the
Wireless Telecommunications Bureau’s
Auctions and Spectrum Access Division
staff if they have any questions about
default and delinquency disclosure
requirements.
45. 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, but 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.
46. The Bureaus remind 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
VerDate Sep<11>2014
13:07 Apr 26, 2018
Jkt 244001
of an auction applicant’s ability to
comply with the default and
delinquency disclosure requirements of
47 CFR 1.2105. Thus, while the red light
rule ultimately may prevent the
processing of long-form applications by
auction winners, an auction applicant’s
lack of current red light status is not
necessarily determinative of its
eligibility to participate in an auction or
of its upfront payment obligation.
47. Moreover, applicants in Auction
83 should note that any long-form
applications filed after the close of
bidding will be reviewed for compliance
with the Commission’s red light rule,
and such review may result in the
dismissal of a winning bidder’s longform application. The Bureaus strongly
encourage each applicant to carefully
review all records and other available
federal agency databases and
information sources to determine
whether the applicant, or any of its
affiliates (as defined in 47 CFR 1.2110),
or any of its controlling interests, or any
of the affiliates of its controlling
interests, owes or was ever delinquent
in the payment of non-tax debt owed to
any federal agency.
III. Pre-Auction Procedures
A. Online Tutorial on Bidding Process—
Available April 12, 2018
48. An educational auction tutorial
became available on the Auction 83 web
page on Thursday, April 12, 2018. The
tutorial will remain available and
accessible anytime for reference in
connection with the procedures
outlined in the Auction 83 Procedures
Public Notice.
B. Revised Short-Form Applications—
Due Prior to 6:00 p.m. ET on April 26,
2018
49. During the remedial filing
window, each Auction 83 applicant
listed in Attachment A must, at a
minimum, provide sufficient
information in the data fields of the
form such that it is able to certify and
submit its Form 175 via the FCC’s
auction application system. If any
information in its Form 175 or its
attachments is inaccurate or otherwise
needs to be updated, any such changes
must be reported in its Form 175 during
the upcoming remedial filing window.
Attachment B of the Auction 83
Procedures Public Notice contains
instructions for updating short-form
applications in the remedial window.
Updates to the short-form application
must be submitted prior to 6:00 p.m. ET
on April 26, 2018. No application fee is
required.
PO 00000
Frm 00049
Fmt 4700
Sfmt 4700
18447
50. Previously submitted short-form
applications may be viewed and
updated at any time from noon ET on
April 16, 2018, until the filing window
closes at 6:00 p.m. ET on April 26, 2018.
Applicants are strongly encouraged to
file early and are responsible for
allowing adequate time for filing their
applications. Applications can be
updated or amended multiple times
until the remedial filing deadline at 6:00
p.m. ET on April 26, 2018.
51. An applicant must click on the
SUBMIT button on the ‘‘Certify &
Submit’’ screen to successfully submit
its FCC Form 175 and any
modifications; otherwise the application
or changes to the application will not be
received or reviewed by Commission
staff.
C. Application Processing and
Corrections of Deficiencies
52. The Commission will process all
applications for permits listed in
Attachment A of the Auction 83
Procedures Public Notice that are
certified and submitted during the
remedial filing window to determine
which are complete, incomplete, or
incomplete-disqualified. Subsequent to
the remedial filing window the Bureaus
will issue a public notice identifying the
status of each application. An applicant
whose application is incomplete will
have a limited opportunity to address
deficiencies during a resubmission
window, the dates for which will be
announced in a future public notice. If
a listed Auction 83 applicant does not
certify and submit its Form 175 auction
application during the remedial filing
window, its application will be
designated as incomplete-disqualified,
and the applicant will be disqualified
from further participation in Auction
83.
53. Commission staff will
communicate only with an applicant’s
contact person or certifying official, as
designated on the short-form
application, unless the applicant’s
certifying official or contact person
notifies the Commission in writing that
applicant’s counsel or other
representative is authorized to speak on
its behalf. Authorizations may be sent
by email to auction83@fcc.gov.
D. Upfront Payments—Due May 31,
2018
54. In order to be eligible to bid in this
auction, a sufficient upfront payment
and a complete and accurate FCC
Remittance Advice Form (FCC Form
159) must be submitted prior to 6:00
p.m. ET on May 31, 2018, following the
procedures outlined below and the
instructions in Attachment C to the
E:\FR\FM\27APR1.SGM
27APR1
18448
Federal Register / Vol. 83, No. 82 / Friday, April 27, 2018 / Rules and Regulations
Auction 83 Procedures Public Notice.
After completing its short-form
application, an applicant will have
access to an electronic version of the
FCC Form 159. This Form 159 can be
printed and the completed form must be
sent by fax to the FCC at (202) 418–
2843.
jstallworth on DSKBBY8HB2PROD with RULES
1. Making Upfront Payments by Wire
Transfer
55. Wire transfer payments must be
received before 6:00 p.m. ET on May 31,
2018. No other payment method is
acceptable. Specifically, the
Commission will not accept checks,
credit cards or automated clearing house
payments. To avoid untimely payments,
applicants should discuss arrangements
(including bank closing schedules) with
their bankers several days before they
plan to make the wire transfer, and
allow sufficient time for the transfer to
be initiated and completed before the
deadline. The BNF Account Number is
specific to the upfront payments for this
auction. Do not use BNF Account
Number from previous auctions. The
following information will be needed:
ABA Routing Number: 021000021
Receiving Bank: JP Morgan Chase
Beneficiary: FCC/Account #267516869
Originating Bank Information (OBI
Field): (Skip one space between each
information item) ‘‘AUCTIONPAY’’
Applicant FCC Registration Number
(FRN): (same as FCC Form 159, block
21)
Payment Type Code: (same as FCC Form
159, block 24A: ‘‘U083’’)
FCC Code 1: (same as FCC Form 159,
block 28A: ‘‘83’’)
Payer Name: (same as FCC Form 159,
block 2)
Payer FCC Registration Number (FRN):
(If different from applicant FRN): #
56. At least one hour before placing
the order for the wire transfer (but on
the same business day), applicants must
fax a completed FCC Form 159 (Revised
2/03) to the FCC at (202) 418–2843. On
the fax cover sheet, write ‘‘Wire
Transfer—Auction Payment for Auction
83.’’ In order to meet the upfront
payment deadline, an applicant’s
payment must be credited to the
Commission’s account for Auction 83
before the deadline.
57. Each applicant is responsible for
ensuring timely submission of its
upfront payment and for timely filing of
an accurate and complete FCC
Remittance Advice Form (FCC Form
159). An applicant should coordinate
with its financial institution well ahead
of the due date regarding its wire
transfer. The Commission repeatedly
has cautioned auction participants
VerDate Sep<11>2014
13:07 Apr 26, 2018
Jkt 244001
about the importance of planning ahead
to prepare for unforeseen last-minute
difficulties in making payments by wire
transfer. Each applicant also is
responsible for obtaining confirmation
from its financial institution that its
wire transfer to JP Morgan Chase was
successful and from Commission staff
that its upfront payment was timely
received and that it was deposited into
the proper account. To receive
confirmation from Commission staff,
contact Gail Glasser of the Office of
Managing Director’s Revenue &
Receivables Operations Group/Auctions
at (202) 418–0578, or alternatively,
Theresa Meeks at (202) 418–2945.
58. All upfront payments must be
made in U.S. dollars. All upfront
payments must be made by wire
transfer. Upfront payments for Auction
83 go to an account number different
from the accounts used in previous FCC
auctions. Failure to deliver a sufficient
upfront payment as instructed in the
Auction 83 Procedures Public Notice by
the deadline on May 31, 2018 will result
in dismissal of the short-form
application and disqualification from
further participation in the auction.
2. FCC Form 159
59. An accurate and complete FCC
Remittance Advice Form (FCC Form
159, Revised 2/03) must be faxed to the
FCC at (202) 418–2843 to accompany
each upfront payment. Proper
completion of this form is critical to
ensuring correct crediting of upfront
payments. Detailed instructions for
completion of FCC Form 159 are
included in Attachment C. An
electronic pre-filled version of the FCC
Form 159 is available after submitting
the FCC Form 175. Payers using the prefilled FCC Form 159 are responsible for
ensuring that all of the information on
the form, including payment amounts,
is accurate.
3. Upfront Payments and Bidding
Eligibility
60. Applicants must make upfront
payments sufficient to obtain bidding
eligibility on the construction permits
on which they will bid. The Bureaus
proposed in the Auction 83 Comment
Public Notice that the amount of the
upfront payment would determine a
bidder’s initial bidding eligibility, the
maximum number of bidding units on
which a bidder may place bids in any
single round. The Bureaus received no
comment on the proposal that the
upfront payment amount would
determine a bidder’s initial bidding
eligibility, and this proposal is adopted.
61. Under the Bureaus’ proposal, in
order to bid on a particular construction
PO 00000
Frm 00050
Fmt 4700
Sfmt 4700
permit, otherwise qualified bidders that
are designated in Attachment A of the
Auction 83 Procedures Public Notice for
that construction permit must have a
current eligibility level that meets or
exceeds the number of bidding units
assigned to that construction permit. At
a minimum, therefore, an applicant’s
total upfront payment must be enough
to establish eligibility to bid on at least
one of the construction permits
designated for that applicant in
Attachment A of the Auction 83
Procedures Public Notice, or else the
applicant will not be eligible to
participate in the auction. An applicant
does not have to make an upfront
payment to cover all construction
permits designated for that applicant in
Attachment A of the Auction 83
Procedures Public Notice, but only
enough to cover the maximum number
of bidding units that are associated with
construction permits on which they
wish to place bids and hold
provisionally winning bids in any given
round. (A provisionally winning bid is
a bid that would become a final winning
bid if the auction were to close after the
given round.) The total upfront payment
does not affect the total dollar amount
the bidder may bid on any given
construction permit.
62. In the Auction 83 Comment Public
Notice, the Bureaus proposed an upfront
payment for each construction permit,
taking into account various factors
related to the efficiency of the auction
process and the potential value of
similar spectrum, and sought comment
on this proposal. The Bureaus received
no comment on the specified upfront
payment amounts for each construction
permit in Auction 83, and the proposed
upfront payment amounts are adopted.
The specific upfront payment amounts
and bidding units for each construction
permit are set forth in Attachment A of
the Auction 83 Procedures Public
Notice.
63. In calculating its upfront payment
amount, an applicant should determine
the maximum number of bidding units
on which it may wish to be active (bid
on or hold provisionally winning bids
on) in any single round, and submit an
upfront payment amount covering that
number of bidding units. In order to
make this calculation, an applicant
should add together the bidding units
for all construction permits on which it
seeks to be active in any given round.
Applicants should check their
calculations carefully, as there is no
provision for increasing a bidder’s
eligibility after the upfront payment
deadline. A qualified bidder’s maximum
eligibility will not exceed the sum of the
bidding units associated with the total
E:\FR\FM\27APR1.SGM
27APR1
Federal Register / Vol. 83, No. 82 / Friday, April 27, 2018 / Rules and Regulations
jstallworth on DSKBBY8HB2PROD with RULES
number of construction permits
identified for that applicant in
Attachment A of the Auction 83
Procedures Public Notice.
64. Applicants that are former
defaulters, as described in the Auction
83 Procedures Public Notice, must pay
upfront payments 50 percent greater
than non-former defaulters. For this
classification as a former defaulter or a
former delinquent, defaults and
delinquencies of the applicant itself and
its controlling interests are included.
For this purpose, the term controlling
interest is defined in 47 CFR
1.2105(a)(4)(i). If a former defaulter fails
to submit a sufficient upfront payment
to establish eligibility to bid on at least
one of the construction permits
designated for that applicant in
Attachment A of the Auction 83
Procedures Public Notice, that applicant
will not be eligible to participate further
in Auction 83. This applicant will retain
its status as an applicant in Auction 83,
and will remain subject to 47 CFR
1.2105(c) and 73.5002(d).
65. If an applicant is a former
defaulter, it must calculate its upfront
payment for all of its identified
construction permits by multiplying the
number of bidding units on which it
wishes to be active by 1.5. In order to
calculate the number of bidding units to
assign to former defaulters, the
Commission will divide the upfront
payment received by 1.5 and round the
result up to the nearest bidding unit.
E. Auction Registration
66. At least one week before the
beginning of bidding in the auction, the
Bureaus will issue a public notice
announcing all qualified bidders for the
auction. Qualified bidders are those
applicants with submitted FCC Form
175 applications that are deemed timely
filed, accurate, and substantially
complete, provided that such applicants
have timely submitted an upfront
payment that is sufficient to qualify
them to bid.
67. All qualified bidders are
automatically registered for the auction.
Registration materials will be
distributed prior to the auction by
overnight mail. The mailing will be sent
only to the contact person at the contact
address listed in the FCC Form 175 and
will include the SecurID® tokens that
will be required to place bids, the web
address and instructions for accessing
and logging in to the auction bidding
system, an FCC assigned username
(User ID) for each authorized bidder,
and the Auction Bidder Line phone
number.
68. Qualified bidders that do not
receive this registration mailing will not
VerDate Sep<11>2014
13:07 Apr 26, 2018
Jkt 244001
be able to submit bids. Therefore, if this
mailing is not received by noon on
Thursday, June 14, 2018, the contact,
certifier or authorized bidder listed on
that applicant’s Form 175 needs to 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.
69. In the event that SecurID® tokens
are lost or damaged, only a person who
has been designated as an authorized
bidder, the contact person, or the
certifying official on the applicant’s
short-form application may request
replacements. To request replacement of
these items, call Technical Support at
(877) 480–3201, option nine; (202) 414–
1250; or (202) 414–1255 (TTY).
F. Remote Electronic Bidding
70. The Commission will conduct this
auction over the internet, and
telephonic bidding will be available as
well. Only qualified bidders are
permitted to bid. Each applicant should
indicate its bidding preference,
electronic or telephonic, on its FCC
Form 175. In either case, each
authorized bidder must have its own
SecurID® token, which the Commission
will provide at no charge. Each
applicant with one authorized bidder
will be issued two SecurID® tokens,
while applicants with two or three
authorized bidders will be issued three
tokens. For security purposes, the
SecurID® tokens, bidding system web
address, FCC assigned username, and
the telephonic bidding telephone
number are only mailed to the contact
person at the contact address listed on
the FCC Form 175. Each SecurID® token
is tailored to a specific auction.
SecurID® tokens issued for other
auctions or obtained from a source other
than the FCC will not work for Auction
83.
G. Mock Auction—June 19, 2018
71. All qualified bidders will be
eligible to participate in a mock auction
on Tuesday, June 19, 2018. The mock
auction will enable bidders to become
familiar with the FCC auction bidding
system prior to the auction. The Bureaus
strongly recommend that all bidders
participate in the mock auction. Details
will be announced by public notice.
IV. Auction
72. The first round of bidding for
Auction 83 will begin on Thursday,
June 21, 2018. The initial bidding
schedule will be announced in a public
notice listing the qualified bidders,
PO 00000
Frm 00051
Fmt 4700
Sfmt 4700
18449
which is released at least one week
before the start of the auction.
A. Auction Structure
1. Simultaneous Multiple Round
Auction
73. In the Auction 83 Comment Public
Notice, the Bureaus proposed to auction
all construction permits listed in
Attachment A of the Auction 83
Procedures Public Notice in a single
auction using the Commission’s
standard simultaneous multiple-round
auction format. This type of auction
offers every construction permit for bid
at the same time and consists of
successive bidding rounds in which
qualified bidders may place bids on
individual construction permits. The
Bureaus received no comment on this
proposal, and this proposal is adopted.
Unless otherwise announced, bids will
be accepted on all construction permits
in each round of the auction until
bidding stops on every construction
permit.
2. Eligibility and Activity Rules
74. As discussed in the Auction 83
Procedures Public Notice, the Bureaus
will use upfront payments to determine
initial (maximum) bidding eligibility (as
measured in bidding units) for Auction
83. The amount of the upfront payment
submitted by a bidder determines initial
bidding eligibility, the maximum
number of bidding units on which a
bidder may be active. As noted earlier,
each construction permit is assigned a
specific number of bidding units as
listed in Attachment A of the Auction
83 Procedures Public Notice. Bidding
units assigned to each construction
permit do not change as prices rise
during the auction. Upfront payments
are not attributed to specific
construction permits. Rather, a bidder
may place bids on any of the
construction permits for which it is
designated an applicant in Attachment
A of the Auction 83 Procedures Public
Notice as long as the total number of
bidding units associated with those
construction permits does not exceed its
current eligibility. Eligibility cannot be
increased during the auction; it can only
remain the same or decrease. Thus, in
calculating its upfront payment amount
and therefore its initial bidding
eligibility, an applicant must determine
the maximum number of bidding units
on which it may wish to bid or hold
provisionally winning bids in any single
round, and submit an upfront payment
amount covering that total number of
bidding units. At a minimum, an
applicant’s upfront payment must cover
the bidding units for at least one of the
E:\FR\FM\27APR1.SGM
27APR1
18450
Federal Register / Vol. 83, No. 82 / Friday, April 27, 2018 / Rules and Regulations
jstallworth on DSKBBY8HB2PROD with RULES
construction permits for which it is
designated an applicant in Attachment
A of the Auction 83 Procedures Public
Notice. The total upfront payment does
not affect the total dollar amount a
bidder may bid on any given
construction permit. The Bureaus
received no comments on the bidding
eligibility proposals, and these
proposals are adopted.
75. In order to ensure that an auction
closes within a reasonable period of
time, an activity rule requires bidders to
bid actively throughout the auction,
rather than wait until late in the auction
before participating. Bidders are
required to be active on a specific
percentage of their current bidding
eligibility during each round of the
auction.
76. A bidder’s activity level in a
round is the sum of the bidding units
associated with construction permits
covered by the bidder’s new bids in the
current round and provisionally
winning bids from the previous round.
A provisionally winning bid is a bid
that would become a final winning bid
if the auction were to close after the
given round.
77. The Bureaus received no comment
on the activity rule proposal. Therefore,
the Bureaus adopt the following activity
requirement: A bidder is required to be
active on 100 percent of its current
eligibility during each round of the
auction. That is, a bidder must either
place a bid or be a provisionally
winning bidder during each round of
the auction. Failure to maintain the
requisite activity level will result in the
use of an activity rule waiver, if any
remain, or a reduction in the bidder’s
eligibility, possibly curtailing or
eliminating the bidder’s ability to place
additional bids in the auction.
3. Activity Rule Waivers
78. In the Auction 83 Comment Public
Notice, the Bureaus proposed that each
bidder in the auction be provided with
three activity rule waivers. The Bureaus
received no comment on this issue.
79. Therefore, the Bureaus adopt this
proposal to provide bidders with three
activity rule waivers. Bidders may use
an activity rule waiver in any round
during the course of the auction. Use of
an activity rule waiver preserves the
bidder’s eligibility despite its activity in
the current round being below the
required minimum activity level. An
activity rule waiver applies to an entire
round of bidding, not to a particular
construction permit. Activity rule
waivers can be either proactive or
automatic. Activity rule waivers are
principally a mechanism for a bidder to
avoid the loss of bidding eligibility in
VerDate Sep<11>2014
13:07 Apr 26, 2018
Jkt 244001
the event that exigent circumstances
prevent it from bidding in a particular
round.
80. The FCC auction bidding system
will assume that a bidder that does not
meet the activity requirement would
prefer to use an activity rule waiver (if
available) rather than lose bidding
eligibility. Therefore, the system will
automatically apply a waiver at the end
of any bidding round in which a
bidder’s activity level is below the
minimum required unless (1) the bidder
has no activity rule waivers remaining
or (2) the bidder overrides the automatic
application of a waiver by reducing
eligibility, thereby meeting the activity
requirement. If a bidder has no waivers
remaining and does not satisfy the
required activity level, the bidder’s
current eligibility will be permanently
reduced, possibly curtailing or
eliminating the ability to place
additional bids in the auction.
81. A bidder with insufficient activity
may wish to reduce its bidding
eligibility rather than use an activity
rule waiver. If so, the bidder must
affirmatively override the automatic
waiver mechanism during the bidding
round by using the reduce eligibility
function in the FCC auction bidding
system. In this case, the bidder’s
eligibility would be permanently
reduced to bring it into compliance with
the activity rule described in the
Auction 83 Procedures Public Notice.
Reducing eligibility is an irreversible
action; once eligibility has been
reduced, a bidder cannot regain its lost
bidding eligibility.
82. Also, a bidder may apply an
activity rule waiver proactively as a
means to keep the auction open without
placing a bid. If a bidder proactively
were to apply an activity rule waiver
(using the proactive waiver function in
the FCC auction bidding system) during
a bidding round in which no bid is
placed, the auction will remain open
and the bidder’s eligibility will be
preserved. An automatic waiver applied
by the FCC auction bidding system in a
round in which there is no new bid or
no proactive waiver will not keep the
auction open.
4. Auction Stopping Rule
83. For Auction 83, the Bureaus
proposed to employ a simultaneous
stopping rule approach, which means
all construction permits remain
available for bidding until bidding stops
on every construction permit.
Specifically, bidding will close on all
construction permits after the first
round in which no bidder submits any
new bid or applies a proactive waiver.
PO 00000
Frm 00052
Fmt 4700
Sfmt 4700
84. The Bureaus also sought comment
on alternative versions of the
simultaneous stopping rule for Auction
83. (1) The auction would close for all
construction permits after the first
round in which no bidder applies a
waiver or places any new bid on a
construction permit for which it is not
the provisionally winning bidder. Thus,
absent any other bidding activity, a
bidder placing a new bid on a
construction permit for which it is the
provisionally winning bidder would not
keep the auction open under this
modified stopping procedure. (2) The
auction would close for all construction
permits after the first round in which no
bidder applies a proactive waiver or
places any new bid on a construction
permit that already has a provisionally
winning bid. Thus, absent any other
bidding activity, a bidder placing a new
bid on an FCC-held construction permit
(a construction permit that does not
have a provisionally winning bid)
would not keep the auction open under
this modified stopping procedure.
(3) The auction would close using a
modified version of the simultaneous
stopping procedure that combines
options (1) and (2). (4) The auction
would close after a specified number of
additional rounds (special stopping
procedure) to be announced by the
Bureaus. If the Bureaus invoke this
special stopping procedure, they will
accept bids in the specified final
round(s), after which the auction will
close. (5) The auction would remain
open even if no bidder places any new
bids or applies a waiver. In this event,
the effect will be the same as if a bidder
had applied a waiver. The activity rule
will apply as usual, and a bidder with
insufficient activity will either lose
bidding eligibility or use a waiver.
85. The Bureaus proposed to exercise
these options only in certain
circumstances, for example, where the
auction is proceeding unusually slowly
or quickly, there is minimal overall
bidding activity, or it appears likely that
the auction will not close within a
reasonable period of time or will close
prematurely. Before exercising these
options, the Bureaus are likely to
attempt to change the pace of the
auction. For example, the Bureaus may
adjust the pace of bidding by changing
the number of bidding rounds per day
and/or the minimum acceptable bids.
The Bureaus proposed to retain the
discretion to exercise any of these
options with or without prior
announcement during the auction. The
Bureaus received no comment on these
proposals and adopt them for Auction
83.
E:\FR\FM\27APR1.SGM
27APR1
Federal Register / Vol. 83, No. 82 / Friday, April 27, 2018 / Rules and Regulations
5. Auction Delay, Suspension, or
Cancellation
86. The Bureaus received no comment
on their proposals in the Auction 83
Comment Public Notice regarding
auction delay, suspension, or
cancellation, and adopt them. By public
notice and/or by announcement through
the FCC auction bidding system, the
Bureaus may delay, suspend, or cancel
bidding in the auction in the event of
natural disaster, technical obstacle,
administrative or weather necessity,
evidence of an auction security breach
or unlawful bidding activity, or for any
other reason that affects the fair and
efficient conduct of competitive
bidding. In such cases, the Bureaus, in
their sole discretion, may elect to
resume the auction starting from the
beginning of the current round or from
some previous round, or cancel the
auction in its entirety. Network
interruption may cause the Bureaus to
delay or suspend the auction. The
Bureaus emphasize that they will
exercise this authority solely at their
discretion, and not as a substitute for
situations in which bidders may wish to
apply their activity rule waivers.
B. Bidding Procedures
jstallworth on DSKBBY8HB2PROD with RULES
1. Round Structure
87. The initial schedule of bidding
rounds will be announced in the public
notice listing the qualified bidders,
which is released at least one week
before the start of bidding in the
auction. Each bidding round is followed
by the release of round results. Multiple
bidding rounds may be conducted each
day.
88. In the Auction 83 Comment Public
Notice, the Bureaus proposed to retain
the discretion to change the bidding
schedule in order to foster an auction
pace that reasonably balances speed
with the bidders’ need to study round
results and adjust their bidding
strategies. The Bureaus received no
comment on these proposals, and adopt
them for Auction 83. The Bureaus may
change the amount of time for the
bidding rounds, the amount of time
between rounds, or the number of
rounds per day, depending upon
bidding activity and other factors.
2. Reserve Price and Minimum Opening
Bids
89. A reserve price is an absolute
minimum price below which a
construction permit or license will not
be sold in a specific auction. In the
Auction 83 Comment Public Notice, the
Bureaus did not propose to establish
reserve prices for the construction
permits listed in Attachment A. The
VerDate Sep<11>2014
13:07 Apr 26, 2018
Jkt 244001
Bureaus did not receive comment on
this proposal, and adopt it.
90. A minimum opening bid is the
minimum bid price set at the beginning
of the auction below which no bids are
accepted. The Bureaus in the Auction 83
Comment Public Notice sought
comment on specifically proposed
minimum opening bid amounts for each
construction permit listed in
Attachment A to the Auction 83
Procedures Public Notice. Specifically, a
minimum opening bid was proposed for
each construction permit by taking into
account various factors relating to the
efficiency of the auction and the
potential value of the spectrum,
including the type of service and class
of facility offered, market size,
population covered by the proposed
broadcast facility, industry cash flow
data, and recent broadcast transactions.
91. The Bureaus received no comment
on the proposed minimum opening bid
amounts, and therefore the Bureaus
adopt the minimum opening bid
amounts proposed in the Auction 83
Comment Public Notice. The specific
minimum opening bid amounts for each
of the construction permits are again
specified in Attachment A to the
Auction 83 Procedures Public Notice.
3. Bid Amounts
92. In the Auction 83 Comment Public
Notice, the Bureaus proposed that in
each round, if the bidder has sufficient
eligibility to place a bid on the
particular construction permit, an
eligible bidder will be able to place a
bid on a given construction permit in
any of up to nine different amounts.
Under the proposal, the FCC auction
bidding system interface will list the
nine acceptable bid amounts for each
construction permit. The Bureaus
received no comment on this proposal;
therefore, it is adopted.
93. For calculation of the nine
acceptable bid amounts for each
construction permit, the Bureaus did
not receive any comment on a proposal
to use 10 percent for a minimum
acceptable bid increment percentage
and to use 5 percent for an additional
bid increment percentage. Therefore, the
Bureaus will begin the auction with a
minimum acceptable bid increment
percentage of 10 percent and an
additional bid increment percentage of
5 percent.
94. In Auction 83, the minimum
acceptable bid amount for a
construction permit will be equal to its
minimum opening bid amount until
there is a provisionally winning bid for
the construction permit. After there is a
provisionally winning bid for a
construction permit, the minimum
PO 00000
Frm 00053
Fmt 4700
Sfmt 4700
18451
acceptable bid amount will be
calculated by multiplying the
provisionally winning bid amount by
one plus the minimum acceptable bid
percentage, i.e., provisionally winning
bid amount * 1.10, rounded under the
Commission’s standard rounding
procedures for auctions as described in
the Auction 83 Procedures Public
Notice.
95. In Auction 83, the FCC auction
bidding system will calculate the eight
additional bid amounts by multiplying
the minimum acceptable bid amount by
the additional bid increment percentage
of 5 percent, and that result (rounded)
is the additional increment amount. The
first additional acceptable bid amount
equals the minimum acceptable bid
amount plus the additional increment
amount. The second additional
acceptable bid amount equals the
minimum acceptable bid amount plus
two times the additional increment
amount; the third additional acceptable
bid amount is the minimum acceptable
bid amount plus three times the
additional increment amount, etc.
Because the additional bid increment
percentage is 5 percent, the calculation
of the additional increment amount is
(minimum acceptable bid amount) *
(0.05), rounded. The first additional
acceptable bid amount equals
(minimum acceptable bid amount) +
(additional increment amount); the
second additional acceptable bid
amount equals (minimum acceptable
bid amount) + (2 * (additional
increment amount)); the third additional
acceptable bid amount equals
(minimum acceptable bid amount) + (3
* (additional increment amount)); etc.
96. The Bureaus proposed to retain
the discretion to change the minimum
acceptable bid amounts, the minimum
acceptable bid percentage, the
additional bid increment percentage,
and the number of acceptable bid
amounts if the Bureaus determine that
circumstances so dictate. Further, the
Bureaus proposed to retain the
discretion to do so on a construction
permit-by-construction permit basis.
The Bureaus also proposed to retain the
discretion to limit (a) the amount by
which a minimum acceptable bid for a
construction permit may increase
compared with the corresponding
provisionally winning bid, and (b) the
amount by which an additional bid
amount may increase compared with
the immediately preceding acceptable
bid amount. For example, the Bureaus
could set a $1,000 limit on increases in
minimum acceptable bid amounts over
provisionally winning bids. Thus, if
calculating a minimum acceptable bid
using the minimum acceptable bid
E:\FR\FM\27APR1.SGM
27APR1
18452
Federal Register / Vol. 83, No. 82 / Friday, April 27, 2018 / Rules and Regulations
percentage results in a minimum
acceptable bid amount that is $1,200
higher than the provisionally winning
bid on a construction permit, the
minimum acceptable bid amount would
instead be capped at $1,000 above the
provisionally winning bid.
97. The Bureaus did not receive any
comment on their proposals to retain
the discretion to change bid amounts as
described in the Auction 83 Procedures
Public Notice, if they determine that
circumstances so dictate. The Bureaus
adopt these proposals. If the Bureaus
exercise this discretion, they will alert
bidders by announcement in the FCC
auction bidding system during the
auction.
jstallworth on DSKBBY8HB2PROD with RULES
4. Provisionally Winning Bids
98. The FCC auction bidding system
at the end of each bidding round will
determine a provisionally winning bid
for each construction permit based on
the highest bid amount received for that
permit. A provisionally winning bid
will remain the provisionally winning
bid until there is a higher bid on the
same construction permit at the close of
a subsequent round. Provisionally
winning bids at the end of the auction
become the winning bids.
99. In the Auction 83 Comment Public
Notice, the Bureaus proposed to use a
pseudo-random number generator to
select a single provisionally winning bid
in the event of identical high bid
amounts being submitted on a
construction permit in a given round
(i.e., tied bids). No comments were
received on this proposal. Hence, the
Bureaus adopt this tied bids proposal.
100. Accordingly, the FCC auction
bidding system will assign a pseudorandom number to each bid upon
submission. The tied bid with the
highest pseudo-random number wins
the tiebreaker, and becomes the
provisionally winning bid. The
remaining bidders, as well as the
provisionally winning bidder, can
submit higher bids in subsequent
rounds. However, if the auction were to
close with no other bids being placed,
the winning bidder would be the one
that placed the provisionally winning
bid. If the construction permit receives
any bids in a subsequent round, the
provisionally winning bid again will be
determined by the highest bid amount
received for the construction permit.
101. A provisionally winning bid will
be retained until there is a higher bid on
the construction permit at the close of
a subsequent round. As a reminder,
provisionally winning bids count
toward activity for purposes of the
activity rule.
VerDate Sep<11>2014
13:07 Apr 26, 2018
Jkt 244001
5. Bidding
102. All bidding will take place
remotely either through the FCC auction
bidding system or by telephonic
bidding. There will be no on-site
bidding during Auction 83. Please note
that telephonic bid assistants are
required to use a script when entering
bids placed by telephone. Telephonic
bidders are therefore reminded to allow
sufficient time to bid by placing their
calls well in advance of the close of a
round. The length of a call to place a
telephonic bid may vary; please allow a
minimum of ten minutes.
103. An Auction 83 bidder’s ability to
bid on specific construction permits is
determined by two factors: (1) The
construction permits designated for that
applicant in Attachment A of the
Auction 83 Procedures Public Notice
and (2) the bidder’s eligibility. The bid
submission screens will allow bidders
to submit bids on only those
construction permits designated for that
applicant in Attachment A of the
Auction 83 Procedures Public Notice.
104. In order to access the bidding
function of the FCC auction bidding
system, bidders must be logged in
during the bidding round using the
passcode generated by the SecurID®
token and a personal identification
number (PIN) created by the bidder.
Bidders are strongly encouraged to print
a round summary for each round after
they have completed all of their activity
for that round.
105. If a bidder has sufficient
eligibility to place a bid on the
particular construction permit, eligible
bidders will be able to place bids on a
given construction permit in any of up
to nine pre-defined bid amounts in each
round. For each construction permit, the
FCC auction bidding system will list the
acceptable bid amounts in a drop-down
box. Bidders use the drop-down box to
select from among the acceptable bid
amounts. The FCC auction bidding
system also includes an upload function
that allows text files containing bid
information to be uploaded.
106. Until a bid has been placed on
a construction permit, the minimum
acceptable bid amount for that permit
will be equal to its minimum opening
bid amount. Once there are bids on a
permit, minimum acceptable bids for
the following round will be determined
as described in the Auction 83
Procedures Public Notice.
107. During a round, an eligible
bidder may submit bids for as many
construction permits as it wishes
(providing that it is eligible to bid on the
specific permits), remove bids placed in
the current bidding round, or
PO 00000
Frm 00054
Fmt 4700
Sfmt 4700
permanently reduce eligibility. If
multiple bids are submitted for the same
construction permit in the same round,
the system takes the last bid entered as
that bidder’s bid for the round. Bidding
units associated with construction
permits for which the bidder has
removed bids do not count towards
current activity.
6. Bid Removal and Bid Withdrawal
108. In the Auction 83 Comment
Public Notice, the Bureaus explained
bid removal procedures in the FCC
auction bidding system. Each qualified
bidder has the option of removing any
bids placed in a round provided that
such bids are removed before the close
of that bidding round. By removing a
bid within a round, a bidder effectively
unsubmits the bid. A bidder removing a
bid placed in the same round is not
subject to withdrawal payments.
Removing a bid will affect a bidder’s
activity because a removed bid no
longer counts toward bidding activity
for the round. Once a round closes, a
bidder may no longer remove a bid.
109. In the Auction 83 Comment
Public Notice, the Bureaus proposed to
prohibit bidders from withdrawing any
bid after close of the round in which
that bid was placed. The Bureaus
received no comment on this issue of
bid withdrawal. Accordingly, the
Bureaus will prohibit bid withdrawals
in Auction 83. Bidders are cautioned to
select bid amounts carefully because no
bid withdrawals will be allowed, even
if a bid was mistakenly or erroneously
made.
7. Round Results
110. Reports reflecting bidders’
identities for Auction 83 will be
available before and during the auction.
Thus, bidders will know in advance of
this auction the identities of the bidders
against which they are bidding.
111. Bids placed during a round will
not be made public until the conclusion
of that round. After a round closes, the
Bureaus will compile reports of all bids
placed, current provisionally winning
bids, new minimum acceptable bid
amounts for the following round,
whether the construction permit is FCCheld, and bidder eligibility status
(bidding eligibility and activity rule
waivers), and post the reports for public
access.
8. Auction Announcements
112. The Commission will use auction
announcements to report necessary
information such as schedule changes.
All auction announcements will be
available by clicking a link in the FCC
auction bidding system.
E:\FR\FM\27APR1.SGM
27APR1
Federal Register / Vol. 83, No. 82 / Friday, April 27, 2018 / Rules and Regulations
V. Post-Auction Procedures
113. Shortly after bidding has ended,
the Commission will issue a public
notice declaring the auction closed,
identifying the winning bidders, and
establishing deadlines for submitting
down payments, final payments, and
long-form applications (FCC Forms
349).
A. Down Payments
114. Within ten business days after
release of the auction closing public
notice, each winning bidder must
submit sufficient funds (in addition to
its upfront payment) to bring its total
amount of money on deposit with the
Commission for Auction 83 to twenty
percent of the net amount of its winning
bids (gross bids less any applicable new
entrant bidding credits).
jstallworth on DSKBBY8HB2PROD with RULES
B. Final Payments
115. Each winning bidder will be
required to submit the balance of the net
amount for each of its winning bids
within ten business days after the
applicable deadline for submitting
down payments.
C. Long-Form Applications (FCC Form
349)
116. The Commission’s rules
currently provide that within thirty days
following the close of bidding and
notification to the winning bidders,
unless a longer period is specified by
public notice, winning bidders must
electronically submit a properly
completed long-form application (FCC
Form 349, Application for Authority to
Construct or Make Changes in an FM
Translator or FM Booster Station) and
required exhibits for each construction
permit won through Auction 83.
Winning bidders claiming new entrant
status must include an exhibit
demonstrating their eligibility for the
bidding credit. The Commission’s rules
also provide that a winning bidder in a
commercial broadcast spectrum auction
is required to submit an application
filing fee with its post-auction long-form
application. Further instructions on
these and other filing requirements will
be provided to winning bidders in the
auction closing public notice. An
Auction 83 applicant that has its longform application dismissed will be
deemed to have defaulted and will be
subject to default payments under 47
CFR 1.2104(g) and 1.2109(c).
D. Default and Disqualification
117. Any winning bidder that defaults
or is disqualified after the close of the
auction (i.e., fails to remit the required
down payment by the specified
deadline, fails to submit a timely long-
VerDate Sep<11>2014
13:07 Apr 26, 2018
Jkt 244001
form application, fails to make a full
and timely final payment, or is
otherwise disqualified) is liable for
default payments as described in 47
CFR 1.2104(g)(2). This payment consists
of a deficiency payment, equal to the
difference between the amount of the
Auction 83 bidder’s winning bid and
the amount of the winning bid the next
time a construction permit covering the
same spectrum is won in an auction,
plus an additional payment equal to a
percentage of the defaulter’s bid or of
the subsequent winning bid, whichever
is less.
118. In the Auction 83 Comment
Public Notice, the Bureaus proposed to
set the percentage of the applicable bid
to be assessed as an additional payment
for any Auction 83 default at 20 percent
of the applicable bid. The Bureaus
received no comment on this proposal,
and it is therefore adopted.
119. Finally, in the event of a default,
the Commission has the discretion to reauction the construction permit 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.
E. Refund of Remaining Upfront
Payment Balance
120. All refunds of upfront payment
balances will be returned to the payer of
record as identified on the FCC Form
159 unless the payer submits written
authorization instructing otherwise. To
access the refund form, bidders are
encouraged to use the Refund
Information icon found on the Auction
Application Manager page or through
the Refund Form link available on the
Auction Application Submit
Confirmation page in the FCC auction
application system. After the required
information is completed on the blank
form, the form should be printed,
signed, and submitted to the
Commission by mail or fax as instructed
below.
121. If a bidder has elected not to
complete the Refund Form through the
Auction Application Manager page, the
Commission is requesting that all
information listed below be supplied in
writing.
Name, address, contact and phone
number of Bank
ABA Number
PO 00000
Frm 00055
Fmt 4700
Sfmt 4700
18453
Account Number to Credit
Name of Account Holder
FCC Registration Number (FRN)
The refund request must be submitted
by fax to the Revenue & Receivables
Operations Group/Auctions at (202)
418–2843 or by mail to:
Federal Communications
Commission, Financial Operations,
Revenue & Receivables Operations
Group/Auctions, Gail Glasser, 445 12th
Street SW, Room 1–C864, Washington,
DC 20554.
Note: Refund processing generally takes up
to two weeks to complete. Bidders with
questions about refunds should contact Gail
Glasser at (202) 418–0578 or Theresa Meeks
at (202) 418–2945.
VI. Final Regulatory Flexibility
Certification
122. The Regulatory Flexibility Act of
1980, as amended (RFA), 5 U.S.C. 603,
requires that a regulatory flexibility
analysis be prepared for a notice-andcomment rulemaking proceeding, unless
the agency certifies that the rule will
not, if promulgated, have a significant
economic impact on a substantial
number of small entities. 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, 5 U.S.C. 601(3). 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).
15 U.S.C 632.
123. As required by the RFA, an
Initial Regulatory Flexibility
Certification (IRFC) was incorporated in
the January 16, 2018, public notice
seeking comment on competitive
bidding procedures to be used in
Auction 83. A summary of this public
notice was published at 83 FR 4455, Jan.
31, 2018. The Auction 83 Procedures
Public Notice implements competitive
bidding rules adopted by the
Commission in multiple notice-andcomment rulemaking proceedings, as
well as establishes by the Bureaus, on
delegated authority, additional
procedures for competitive bidding in
Auction 83 for certain FM translator
construction permits. More specifically,
the Public Notice provides an overview
of the procedures, terms and conditions
governing Auction 83 and the postauction application and payment
processes. The Public Notice also
E:\FR\FM\27APR1.SGM
27APR1
jstallworth on DSKBBY8HB2PROD with RULES
18454
Federal Register / Vol. 83, No. 82 / Friday, April 27, 2018 / Rules and Regulations
provides instructions for Auction 83
applicants to review, verify and update
their previously filed short-form
applications during the upcoming
Remedial Window, as required. In
addition, the Public Notice addresses
three filings submitted by parties in
response to the Auction 83 Comment
Public Notice.
124. Auction 83 is a closed auction,
therefore the specific competitive
bidding procedures and minimum
opening bid amounts described in the
Auction 83 Comment Public Notice will
affect only the 57 individuals or entities
listed in Attachment A to the Auction
83 Procedures Public Notice who are
eligible to complete the remaining steps
to become qualified to bid in this
auction. The latest available U.S. Census
Bureau data show that there were 2,849
radio station firms that operated in
2012. Of that number 2,806 firms
operated with annual receipts below the
SBA’s small business size standard of
firms having $38.5 million or less in
annual receipts. The 57 eligible
individuals or entities for Auction 83
include firms of all sizes and constitute
approximately two percent of all firms
that operated and of firms meeting the
SBA small business size standard.
Consequently, because the proposed
procedures and minimum opening bid
amounts would affect a maximum of 57
radio station firms, or approximately
two percent of the total, and not all 57
are small entities, the Bureaus find that
a substantial number of small entities
would not be affected by these
competitive bidding procedures or
minimum opening bid amounts
contained in the Auction 83 Procedures
Public Notice. Therefore, the Bureaus
certify that these competitive bidding
procedures and minimum opening bid
amounts announced in the Auction 83
Procedures Public Notice will not have
a significant economic impact on a
substantial number of small entities.
125. The Bureaus will send a copy of
the Auctions 83 Procedures Public
Notice, including this Final Regulatory
Flexibility Certification, in a Report to
Congress pursuant to the Congressional
Review Act, 5 U.S.C. 801(a)(1)(A). In
addition, the Auctions 83 Procedures
Public Notice and this Final Regulatory
Flexibility Certification will be sent to
the Chief Counsel for Advocacy of the
SBA pursuant to 5 U.S.C. 605(b).
FEDERAL COMMUNICATIONS
COMMISSION
Federal Communications Commission.
Gary Michaels,
Deputy Chief, Auctions and Spectrum Access
Division, WTB.
■
47 CFR Part 54
[WC Docket Nos. 10–90, 14–58, 14–259; FCC
16–64]
Connect America Fund, ETC Annual
Reports and Certifications, Rural
Broadband Experiments
Federal Communications
Commission.
ACTION: Technical amendments.
AGENCY:
This document corrects errors
in the final rules portion of a Federal
Register document that adopted rules to
implement a competitive bidding
process for Phase II of the Connect
America Fund that will harness market
forces to expand broadband in targeted
rural areas. The document was
published in the Federal Register on
July 7, 2016.
DATES: Effective April 27, 2018.
FOR FURTHER INFORMATION CONTACT:
Alexander Minard, Wireline
Competition Bureau, (202) 418–7400.
SUPPLEMENTARY INFORMATION: This is a
summary of the FCC’s Erratum, FCC 18–
297, released on March 26, 2018. This
summary contains technical
amendments to a Federal Register
summary, 81 FR 44414 (July 7, 2016).
The full text of the Commission’s Report
and Order, WC Docket Nos. 10–90, 14–
58; 14–259; FCC 16–64, released on
March 26, 2016 is available for public
inspection during regular business
hours in the FCC Reference Center,
Room CY–A257, 445 12th Street SW,
Washington, DC 20554.
SUMMARY:
Technical Amendments
List of Subjects in 47 CFR Part 54
Communications common carriers,
Health facilities, Infants and children,
internet, Libraries, Reporting and
recordkeeping requirements, Schools,
Telecommunications, Telephone.
Accordingly, 47 CFR part 54 is
corrected by making the following
correcting amendments:
PART 54—UNIVERSAL SERVICE
1. The authority citation for part 54
continues to read as follows:
■
Authority: 47 U.S.C. 151, 154(i), 155, 201,
205, 214, 219, 220, 254, 303(r), 403, and 1302
unless otherwise noted.
2. In § 54.315, revise paragraph
(c)(2)(iv)(A) to read as follows:
[FR Doc. 2018–08635 Filed 4–26–18; 8:45 am]
*
3. In § 54.804, revise paragraph
(d)(2)(iv)(A) to read as follows:
■
§ 54.804
Application process.
*
*
*
*
*
(d) * * *
(2) * * *
(iv) * * *
(A) That is among the 100 largest nonU.S. banks in the world, determined on
the basis of total assets as of the end of
the calendar year immediately
preceding the issuance of the letter of
credit (determined on a U.S. dollar
equivalent basis as of such date);
*
*
*
*
*
Federal Communications Commission.
Katura Jackson,
Federal Register Liaison Officer, Office of the
Secretary.
[FR Doc. 2018–08887 Filed 4–26–18; 8:45 am]
BILLING CODE 6712–01–P
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Parts 225 and 252
Foreign Acquisition; Solicitation
Provisions and Contract Clauses
CFR Correction
In Title 48 of the Code of Federal
Regulations, Chapter 2 (Parts 201 to
299), revised as of October 1, 2017, on
page 179, in 225.872–1, in paragraph (a),
and on page 465, in 252.225–7021,
under TRADE AGREEMENTS–BASIC
(DEC 2016), under Qualifying country,
‘‘Czech Republic’’ is added in
alphabetical order.
■
[FR Doc. 2018–09059 Filed 4–26–18; 8:45 am]
BILLING CODE 1301–00–D
§ 54.315 Application process for phase II
support distributed through competitive
bidding.
BILLING CODE 6712–01–P
(c) * * *
(2) * * *
(iv) * * *
(A) That is among the 100 largest nonU.S. banks in the world, determined on
the basis of total assets as of the end of
the calendar year immediately
preceding the issuance of the letter of
credit (determined on a U.S. dollar
equivalent basis as of such date);
*
*
*
*
*
VerDate Sep<11>2014
13:07 Apr 26, 2018
Jkt 244001
PO 00000
*
*
Frm 00056
*
Fmt 4700
*
Sfmt 9990
E:\FR\FM\27APR1.SGM
27APR1
Agencies
[Federal Register Volume 83, Number 82 (Friday, April 27, 2018)]
[Rules and Regulations]
[Pages 18441-18454]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-08635]
=======================================================================
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Parts 1, 73 and 74
[AU Docket No. 17-351; DA 18-257]
Auction of FM Translator Construction Permits Scheduled for June
21, 2018; Notification of Filing Requirements, Minimum Opening Bids,
Upfront Payments, and Other Procedures for Auction 83
AGENCY: Federal Communications Commission.
ACTION: Final action; requirements and procedures.
-----------------------------------------------------------------------
SUMMARY: In this document, the Commission summarizes the procedures and
announces upfront payments amounts and minimum opening bids for the
auction of FM translator construction permits (Auction 83). The
document summarized here is intended to familiarize applicants with the
procedures and other requirements for participation in the auction.
DATES: April 16, 2018, and until 6:00 p.m. Eastern Time (ET) on April
26, 2018, each Auction 83 applicant must review, verify or update its
previously-filed short-form applications (FCC Forms 175)
electronically. Bidding in
[[Page 18442]]
Auction 83 is scheduled to start on June 21, 2018.
FOR FURTHER INFORMATION CONTACT: For auction legal questions, Lynne
Milne in the Wireless Telecommunications Bureau's Auctions and Spectrum
Access Division at (202) 418-0660. For auction process and procedures,
the FCC Auction Hotline at (717) 338-2868. For FM translator service
questions, James Bradshaw, Lisa Scanlan or Tom Nessinger in the Media
Bureau's Audio Division at (202) 418-2700. To request materials in
accessible formats (Braille, large print, electronic files, or audio
format) for people with disabilities, send an email to [email protected]
or call the Consumer and Governmental Affairs Bureau at (202) 418-0530
or (202) 418-0432 (TTY).
SUPPLEMENTARY INFORMATION: This is a summary of Commission's document
(Auction 83 Procedures Public Notice), AU Docket No. 17-351; DA 18-257,
released on March 16, 2018. The complete text of this document is
available for public inspection and copying from 8:00 a.m. to 4:30 p.m.
ET Monday through Thursday or from 8:00 a.m. to 11:30 a.m. ET on
Fridays in the FCC Reference Information Center, 445 12th Street SW,
Room CY-A257, Washington, DC 20554. The complete text of this document
and related documents also are available on the internet at the
Commission's website: https://wireless.fcc.gov/auctions/83, or by using
the search function for AU Docket No. 17-351 on the Commission's
Electronic Comment Filing System (ECFS) web page at https://www.fcc.gov/cgb/ecfs.
I. General Information
A. Background
1. On February 6, 2003, the Media and Wireless Telecommunications
Bureaus announced an auction filing window for applications for new FM
translator stations and major modifications to authorized FM translator
facilities in the non-reserved band (Channels 221 to 300). By Public
Notices released May 21, 2013 and April 30, 2014, the Bureaus provided
a list of all applications received during the filing window with
engineering proposals that were mutually exclusive (MX) with
engineering proposals in other applications submitted in the filing
window. Applicants were previously given the opportunity to eliminate
their mutual exclusivity with other applicants' engineering proposals
by settlement or technical modification to their proposals. The Bureaus
will now proceed to auction with the 43 MX groups identified in
Attachment A of the Auction 83 Procedures Public Notice.
B. Construction Permits and Entities Eligible To Participate in Auction
83
2. Auction 83 will resolve mutually exclusive applications for up
to 43 new FM translator construction permits. A list of the locations
and channels of these proposed stations is included as Attachment A to
the Auction 83 Procedures Public Notice. Attachment A also sets forth
the names of applicants in each MX group along with a minimum opening
bid and an upfront payment amount for each construction permit in
Auction 83.
3. An applicant listed in Attachment A may become qualified to bid
only if it meets the additional filing, qualification and payment
requirements and otherwise complies with applicable requirements
described in the Auction 83 Procedures Public Notice. Each applicant
may become a qualified bidder only for those construction permits
specified for that applicant in Attachment A to the Auction 83
Procedures Public Notice. Each of the engineering proposals within each
MX group are directly mutually exclusive with one another; therefore,
no more than one construction permit will be awarded for each MX group
identified in Attachment A. Once mutually exclusive applications are
accepted, because mutual exclusivity exists for auction purposes, an
applicant for a particular construction permit cannot obtain it without
placing a bid, even if no other applicant for that construction permit
becomes qualified to bid or in fact places a bid. While the Auction 83
Comment Public Notice had sought comment on whether certain changes
made since 2003 to 47 CFR 1.2105 warranted any different approach in
this context, no commenter directly addressed this issue. The Bureaus
do not see any reason to depart from established precedent for Auction
83.
4. Section 1.2105(b)(2) provides that an auction applicant that
undertakes a major change, including a change of ownership that would
constitute an assignment or transfer of control, after the short-form
application filing deadline will be disqualified from participating in
bidding. In the Auction 83 Comment Public Notice (see 83 FR 4455, Jan.
31, 2018), the Bureaus sought comment on whether to waive 47 CFR
1.2105(b)'s prohibition on major changes with respect to transfers of
control or assignments that had occurred prior to release of the
Auction 83 Comment Public Notice and/or that have been subject to
Commission review and approval by a particular date. In response to the
Auction 83 Comment Public Notice, iHeart, the parent company of three
Auction 83 applicants, filed comments supporting grant of waivers of 47
CFR 1.2105(b)(2)'s bar on major modifications to allow iHeart
applicants to participate in Auction 83, and one applicant filed an
opposition seeking denial of the requested relief.
5. The Bureaus decided that under the unique factual circumstances,
application of the rule would be unduly burdensome to Auction 83
applicants that have completed a transfer of control or assignment that
was authorized by the Commission during a period of approximately 15
years. In accordance with 47 CFR 1.3, the Bureaus waive 47 CFR
1.2105(b)(2)'s bar on major modifications for any Auction 83 applicant,
such as iHeart or any other similarly-situated party, that has
completed a transfer of control or assignment pursuant to a transaction
that has been reviewed and approved by the Commission prior to the
close of the remedial filing window on April 26, 2018. An applicant
seeking to participate in Auction 83 pursuant to this relief should
include with its updated Form 175 during the upcoming remedial filing
window a brief explanation of any changes it has undertaken during the
pendency of its Form 175, including relevant details such as citations
to or file numbers of Commission authorizations for such changes.
6. In light of the amendments to the Commission's competitive
bidding rules in 2015, the Bureaus also sought comment in the Auction
83 Comment Public Notice on how to apply 47 CFR 1.2105's provisions
that prohibit the filing of multiple auction applications by applicants
subject to common control. The amended rules require entities with any
overlapping controlling interest to participate in an auction through
just a single auction application. The only party to address this
issue, iHeart, supports the Bureaus proposal to require applicants
subject to common control to participate through a single bidding
entity in a single application covering all of the MX engineering
proposals applied for previously by the separate commonly controlled
applicants. The Bureaus waived the current rule's application to the
originally filed Forms 175, which pre-dated the current rule by more
than a decade, and to permit applicants to come into compliance with
the current rule by modifying the relevant auction applications as
necessary to come into compliance. Accordingly, any Auction 83
applicants with overlapping
[[Page 18443]]
controlling interests will be permitted to amend their Forms 175 to
participate as a single bidding entity. Specifically, on or before
March 30, 2018, applicants that have a controlling interest in more
than one Form 175 listed in Attachment A to the Auction 83 Procedures
Public Notice were required to bring those commonly controlled
applications into compliance with the restrictions of 47 CFR
1.2105(a)(3) by filing a written request as an attachment to an email
sent to [email protected]. This written request was required to
identify by applicant name and applicant FCC registration number (FRN)
each of that applicant's 2003 Forms 175 listed in Attachment A in which
there is common control, as well as identification of the individual or
entity with such common control. This email was required to request
consolidation of the previously filed Forms 175 in Attachment A with
common control. The request had to be signed by a person who is an
authorized representative of the applicant with authority to bind that
applicant. After consolidation, the remaining single applicant was
required to update, certify and submit its FCC Form 175 during the
remedial filing window.
C. Rules and Disclaimers
1. Relevant Authority
7. Applicants must familiarize themselves thoroughly with the
Commission's general competitive bidding rules, including Commission
decisions in proceedings regarding competitive bidding procedures,
application requirements, and obligations of Commission licensees.
Broadcasters should also familiarize themselves with the Commission's
commercial FM translator broadcast service and competitive bidding
requirements contained in 47 CFR parts 73 and 74, as well as Commission
orders concerning competitive bidding. Applicants must also be
thoroughly familiar with the procedures, terms and conditions contained
in the Auction 83 Procedures Public Notice and any future public
notices that may be released in this proceeding.
8. The terms contained in the Commission's rules, relevant orders,
and public notices are not negotiable. The Commission may amend or
supplement the information contained in their public notices at any
time, and will issue public notices to convey any new or supplemental
information to applicants. It is the responsibility of each applicant
to remain current with all Commission rules and with all public notices
pertaining to Auction 83.
2. Prohibited Communications and Compliance With Antitrust Laws
9. Starting with the initial application filing deadline on March
17, 2003, the rules prohibiting certain communications set forth in 47
CFR 1.2105(c) and 73.5002(d) and (e) apply to each applicant that filed
a FCC Form 175 in Auction 83. Subject to specified exceptions, 47 CFR
1.2105(c)(1) provides that, after the deadline for filing a short-form
application, all applicants are prohibited from cooperating or
collaborating with respect to, communicating with or disclosing, to
each other in any manner the substance of their own, or each other's,
or any other applicants' bids or bidding strategies (including post-
auction market structure), or discussing or negotiating settlement
agreements, until after the down payment deadline. Applicants are
hereby placed on notice that public disclosure of information relating
to bids, bidding strategies, or to post-auction market structures may
violate 47 CFR 1.2105(c).
a. Entities Subject to Section 1.2105
10. An applicant for purposes of this rule includes the officers
and directors of the applicant, all controlling interests in the entity
submitting the FCC Form 175, as well as all holders of interests
amounting to 10 percent or more of the entity, and all officers and
directors of that entity. A party that submits an application becomes
an applicant under the rule at the application deadline and that status
does not change based on subsequent developments. Thus, an auction
applicant that does not make and submit update to its Form 175 during
the upcoming remedial filing window, correct deficiencies in its
application, fails to submit a timely and sufficient upfront payment or
does not otherwise become qualified, remains an applicant for purposes
of 47 CFR 1.2105(c) and remains subject to the prohibition on certain
communications until the applicable down payment deadline.
b. Scope of Prohibition on Communications; Prohibition on Joint Bidding
Agreements
11. The Commission in 2015 amended 47 CFR 1.2105(c) to extend its
prohibition on communications to cover all applicants for an auction
regardless of whether the applicants seek permits in the same
geographic area or market. Accordingly, the Commission now prohibits
joint bidding arrangements, including arrangements relating to the
licenses being auctioned that address or communicate, directly or
indirectly, bids, bidding at the auction, bidding strategies, including
arrangements regarding price or the specific construction permits or
licenses on which to bid, and any such arrangements relating to the
post-auction market structure. The revised rule provides limited
exceptions for communications within the scope of any arrangement
consistent with the exclusions from the Commissions rule prohibiting
joint bidding, provided such arrangement is disclosed on the
applicant's auction application. An applicant may continue to
communicate pursuant to any pre-existing agreement, arrangement, or
understanding that is solely operational or that provide for a transfer
or assignment of licenses, provided that such agreement, arrangement or
understanding does not involve the communication or coordination of
bids (including amounts), bidding strategies, or the particular
licenses on which to bid and provided that such agreement, arrangement
or understanding is disclosed on its application.
12. In the Auction 83 Comment Public Notice, the Bureaus sought
comment on whether waiver of certain provisions of 47 CFR 1.2105 might
be appropriate or necessary in light of the passage of time since the
2003 filing of the original Auction 83 Forms 175, the rule revisions in
2015, and the business changes that applicants may have undergone. The
Bureaus noted that some Auction 83 applicants and their pending
applications might not be in compliance with the current 47 CFR 1.2105
provisions regarding joint bidding agreements and auction-related
communications. No comment was filed on this issue in response to the
Auction 83 Comment Public Notice. No party has filed notice of any
potential violation of the provisions of 47 CFR 1.2105(c) with respect
to prohibited bidding agreements or communications. Consequently, the
Bureaus find no cause to waive the relevant rules.
c. Section 1.2105(c) Certification
13. By electronically submitting its Form 175, each applicant in
Auction 83 certified its compliance with 47 CFR 1.2105(c) and
73.5002(d). However, the mere filing of a certifying statement as part
of an application will not outweigh specific evidence that a prohibited
communication has occurred, nor will it preclude the initiation of an
investigation when warranted. Any applicant found to have violated
these communication prohibitions may be subject to sanctions.
[[Page 18444]]
d. Reporting Requirements
14. Section 1.2105(c)(4) requires that any applicant that makes or
receives a communication that appears to violate 47 CFR 1.2105(c) must
report such communication in writing to the Commission immediately, and
in no case later than five business days after the communication
occurs. Each applicant's obligation to report any such communication
continues beyond the five-day period after the communication is made,
even if the report is not made within the five-day period.
e. Procedures for Reporting Prohibited Communications
15. Section 1.2105(c) requires parties to file only a single report
concerning a prohibited communication and to file that report with
Commission personnel expressly charged with administering the
Commission's auctions. Any reports required by 47 CFR 1.2105(c) must be
filed consistent with the instructions set forth in the Auction 83
Procedures Public Notice. For Auction 83, such reports must be filed
with the Chief of the Auctions and Spectrum Access Division, Wireless
Telecommunications Bureau, by the most expeditious means available. Any
such report should be submitted by email to Margaret W. Wiener at the
following email address: [email protected]. If you choose instead to
submit a report in hard copy, any such report must be delivered only
to: Margaret W. Wiener, Chief, Auctions and Spectrum Access Division,
Wireless Telecommunications Bureau, Federal Communications Commission,
445 12th Street SW, Room 6C217, Washington, DC 20554.
16. Section 1.2105(c) is designed to minimize the risk of
inadvertent dissemination of information in such reports. A party
reporting any communication pursuant to 47 CFR 1.65, 1.2105(a)(2), or
1.2105(c)(4) must take care to ensure that any report of a prohibited
communication does not itself give rise to a violation of 47 CFR
1.2105(c). For example, a party's report of a prohibited communication
could violate the rule by communicating prohibited information to other
applicants through the use of Commission filing procedures that would
allow such materials to be made available for public inspection, such
as, a submission to the Commission's Office of the Secretary or to the
Commission's Electronic Comment Filing System. A party seeking to
report such a prohibited communication should consider submitting its
report with a request that the report or portions of the submission be
withheld from public inspection by following the procedures specified
in 47 CFR 0.459. Such parties also are encouraged to coordinate with
the Auctions and Spectrum Access Division staff about the procedures
for submitting such reports.
f. Winning Bidders Must Disclose Terms of Agreements
17. Each applicant that is a winning bidder will be required to
disclose in its long-form application the specific terms, conditions,
and parties involved in any agreement it has entered into. This applies
to any bidding consortia, joint venture, partnership, or agreement,
understanding, or other arrangement entered into relating to the
competitive bidding process, including any agreement relating to the
post-auction market structure. Failure to comply with the Commission's
rules can result in enforcement action.
g. Antitrust Laws
18. Regardless of compliance with the Commission's rules,
applicants remain subject to the antitrust laws, which are designed to
prevent anticompetitive behavior in the marketplace. Compliance with
the disclosure requirements of 47 CFR 1.2105(c) will not insulate a
party from enforcement of the antitrust laws.
19. To the extent the Commission becomes aware of specific
allegations that suggest that violations of the federal antitrust laws
may have occurred, the Commission may refer such allegations to the
U.S. Department of Justice for investigation. If an applicant is found
to have violated the antitrust laws or the Commission's rules in
connection with its participation in the competitive bidding process,
the applicant may be subject to forfeiture of its upfront payment, down
payment, or full bid amount and may be prohibited from participating in
future auctions, among other sanctions.
3. Due Diligence
20. The Bureaus remind each potential bidder that it is solely
responsible for investigating and evaluating all technical and
marketplace factors that may have a bearing on the value of the
construction permits for commercial FM translators that it is seeking
in this auction. The FCC makes no representations or warranties about
the use of this spectrum or these construction permits for particular
services. Applicants should be aware that an FCC auction represents an
opportunity to become an FCC permittee in a broadcast service, subject
to certain conditions and regulations. An FCC auction does not
constitute an endorsement by the FCC of any particular service,
technology, or product, nor does an FCC construction permit or license
constitute a guarantee of business success.
21. An applicant should perform its due diligence research and
analysis before proceeding, as it would with any new business venture.
In particular, the Bureaus strongly encourage each potential bidder to
perform technical analyses and/or refresh its previous analyses to
assure itself that, should it become a winning bidder for any Auction
83 construction permit, it will be able to build and operate facilities
that will fully comply with all applicable technical and legal
requirements. The Bureaus strongly encourage each applicant to inspect
any prospective transmitter sites located in, or near, the service area
for which it plans to bid, confirm the availability of such sites, and
to familiarize itself with the Commission's rules regarding the
National Environmental Policy Act.
22. The Bureaus strongly encourage each applicant to continue to
conduct its own research throughout Auction 83 in order to determine
the existence of pending or future administrative or 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 83 (or the
terms and conditions thereof, including all applicable Commission rules
and regulations) and might affect an applicant's decision on continued
participation in the auction. Each applicant is responsible for
assessing the likelihood of the various possible outcomes and for
considering the potential impact on construction permits available in
this auction. The due diligence considerations mentioned in the Auction
83 Procedures Public Notice do not comprise an exhaustive list of steps
that should be undertaken prior to participating in this auction. As
always, the burden is on the potential bidder to determine how much
research to undertake, depending upon specific facts and circumstances
related to its interests.
23. Applicants are solely responsible for identifying associated
risks and for investigating and evaluating the degree to which such
matters may affect their ability to bid on, otherwise acquire, or make
use of the construction permits available in Auction 83. Each potential
bidder is responsible for undertaking research to ensure that any
permits won
[[Page 18445]]
in Auction 83 will be suitable for its business plans and needs. Each
potential bidder must undertake its own assessment of the relevance and
importance of information gathered as part of its due diligence
efforts.
24. The Commission makes no representations or guarantees regarding
the accuracy or completeness of information in its databases or any
third party databases, including, for example, court docketing systems.
To the extent the Commission's databases may not include all
information deemed necessary or desirable by an applicant, it must
obtain or verify such information from independent sources or assume
the risk of any incompleteness or inaccuracy in said databases.
Furthermore, the Commission makes no representations or guarantees
regarding the accuracy or completeness of information that has been
provided by incumbent licensees and incorporated into its databases.
4. Use of Auction Systems
25. The Commission makes no warranty whatsoever with respect to the
FCC auction systems. In no event shall the Commission, or any of its
officers, employees, or agents, be liable for any damages whatsoever
(including, but not limited to, loss of business profits, business
interruption, loss of business information, or any other loss) arising
out of or relating to the existence, furnishing, functioning, or use of
the FCC auction systems that are accessible to qualified bidders in
connection with this auction. Moreover, no obligation or liability will
arise out of the Commission's technical, programming, or other advice
or service provided in connection with the FCC auction systems.
D. Auction Specifics
1. Bidding Methodology and Options
26. The Commission will conduct this auction over the internet
using the FCC auction bidding system. Qualified bidders are permitted
to bid electronically via the internet or by telephone using the
telephonic bidding option. All telephone calls are recorded.
27. The initial schedule for bidding rounds will be announced by
public notice at least one week before bidding in the auction starts.
Moreover, unless otherwise announced, bidding on all construction
permits will be conducted on each business day until bidding has
stopped on all construction permits.
2. Pre-Auction Dates and Deadlines
28. The following dates and deadlines apply:
Auction Tutorial Available (via internet)--April 12, 2018
Short-Form Application (FCC Form 175)
Remedial Filing Window Opened--April 16, 2018; 12:00 noon ET
Short-Form Application (FCC Form 175)
Remedial Filing Window Deadline--April 26, 2018; prior to 6:00 p.m. ET
Upfront Payments (via wire transfer)--May 31, 2018; 6:00 p.m. ET
Mock Auction--June 15, 2018
Auction Begins--June 21, 2018
3. Requirements for Participation
29. A party whose application is listed on Attachment A of the
Auction 83 Procedures Public Notice may participate in the bidding in
Auction 83 only if the applicant:
During the remedial filing window, provides sufficient
information in the data fields of its electronic FCC Form 175 that it
is able to certify and submit its auction application. Instructions for
submitting an updated application are provided in the Auction 83
Procedures Public Notice.
[cir] In the event that the application is found to be incomplete
after Commission staff review, an applicant will have a limited
opportunity to address deficiencies in its application during a
resubmission window, the dates for which will be announced in a future
public notice.
[cir] If an applicant fails to provide sufficient information in
the data fields of its electronic Form 175 the applicant therefore will
not able to certify and submit its Form 175. If an Auction 83 applicant
fails to certify and submit its Form 175 during the remedial window,
that auction application will be designated as Incomplete-Disqualified.
If an application is designated as Incomplete-Disqualified, that
applicant will have no further opportunity to update its application,
and the applicant will be disqualified from further participation in
Auction 83.
Submits a sufficient upfront payment and an FCC Remittance
Advice Form (FCC Form 159) by 6:00 p.m. ET on May 31, 2018, following
the procedures and instructions set forth in Attachment C to the
Auction 83 Procedures Public Notice; and
Complies with all provisions outlined in the Auction 83
Procedures Public Notice and applicable Commission rules.
II. Short-Form Application (FCC Form 175) Requirements
A. Updating Applicant's FCC Form 175 in Auction Application System--
Remedial Filing Window Closes April 26, 2018
30. To qualify to participate in bidding, each Auction 83 applicant
must provide sufficient information in the data fields of its
electronic FCC Form 175 that it is able to certify and submit its
auction application, in compliance with the Commission's competitive
bidding rules and the procedures and deadlines set forth in the Auction
83 Procedures Public Notice. Attachment B of the Auction 83 Procedures
Public Notice contains detailed instructions for updating and verifying
short-form applications.
31. Applicants must make necessary updates and certifications, and
must verify short-form application information during a remedial filing
window. The window opened at noon ET on April 16, 2018, and will close
at 6:00 p.m. ET on April 26, 2018.
32. Each Auction 83 applicant is required to review its FCC Form
175 in the auction application system to insure that all relevant
information is provided and that the information contained in the
application is accurate and complete at this time. Each applicant must
provide updates or revisions of previously submitted information,
consistent with the requirements of 47 CFR 1.65. The auction
application system will permit an applicant to navigate to the certify
and submit screen in its Form 175 only after providing required
disclosures of information in specified data entry fields. An applicant
may also be required to upload an attachment to its Form 175
application in some circumstances. Each applicant is advised to begin
its application updating process early during the remedial filing
window so that it can certify and submit its FCC Form 175 prior to the
close of the remedial filing window. Each Auction 83 applicant must
certify and submit any updates prior to 6:00 p.m. ET on April 26, 2018.
B. Minor Modifications to Short-Form Applications
33. Notwithstanding the relief from 47 CFR 1.2105(b)'s major change
restriction for past transactions as discussed in the Auction 83
Procedures Public Notice, at this stage in the application process, an
Auction 83 applicant is permitted to make only minor changes to its
application. Permissible minor changes include, among other things,
deletion and addition of authorized bidders (to a maximum of three) and
revision of
[[Page 18446]]
addresses and telephone numbers of the applicants and their contact
persons. If revised or updated information constitutes a ``major
amendment,'' as defined by 47 CFR 1.2105, such changes may result in
the dismissal of the application. In this context, major amendments
include a change of technical proposals, change control of the
applicant, claim eligibility for a higher percentage of bidding credit,
or change the identification of the application's proposed facilities
as noncommercial educational after the initial application filing
deadline.
C. Maintaining Current Information in Short-Form Applications
34. As required by 47 CFR 1.65 and 1.2105(b), an applicant must
maintain the accuracy and completeness of all information furnished in
its pending application and in competitive bidding proceedings to
furnish additional or corrected information to the Commission within
five days of a significant occurrence, or to amend a short form
application no more than five days after the applicant becomes aware of
the need for the amendment. Changes that cause a loss of or reduction
in the percentage of bidding credit specified in the application must
be reported immediately, and no later than five business days after the
change occurs.
D. Submission of Updates to Short-Form Applications
35. Updates to short-form applications should be made
electronically using the FCC auction application system whenever
possible. For the change to be submitted and considered by the
Commission, be sure to click on the SUBMIT button.
36. An applicant can use the auction application system outside of
the remedial and resubmission filing windows to make administrative and
certain other changes to its short-form application. After the
resubmission filing window has closed, the system will permit
applicants to modify information in most of the application's data
fields.
37. If changes need to be made outside of these windows, the
applicant must submit a letter briefly summarizing the changes and
subsequently update its short-form application in the auction
application system. Any letter describing changes to an applicant's
short-form application must be addressed to Margaret W. Wiener, Chief,
Auctions and Spectrum Access Division, Wireless Telecommunications
Bureau, and submitted by email to [email protected]. The email
summarizing the changes must include a subject or caption referring to
Auction 83 and the name of the applicant, for example, ``Re: Changes to
Auction 83 Short-Form Application of ABC Corp.'' The Bureaus request
that parties format any attachments to email as Adobe[supreg]
Acrobat[supreg] (pdf) or Microsoft[supreg] Word documents. Questions
about short-form application amendments should be directed to the
Auctions and Spectrum Access Division at (202) 418-0660.
38. Applicants must not submit application-specific material
through the Commission's Electronic Comment Filing System, which was
used for submitting comments regarding procedures for conducting
Auction 83.
39. Applicants should note that submission of a short-form
application (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. Applicants
are reminded that submission of a false certification to the Commission
is a serious matter that may result in severe penalties, including
monetary forfeitures, license revocations, exclusion from participation
in future auctions, and/or criminal prosecution.
E. Electronic Review of Short-Form Applications
40. During the remedial filing window, an applicant listed in
Attachment A of the Auction 83 Procedures Public Notice must review and
update its electronic FCC Form 175 in the auction application system.
There is no fee to access this system. See Attachment B of the Auction
83 Procedures Public Notice for details on accessing the auction
application system. During the remedial filing window, each Auction 83
applicant listed in Attachment A must, at a minimum, certify and submit
its Form 175.
F. Provisions Regarding Former and Current Defaulters
41. 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 83. An applicant is considered a
current defaulter or a current delinquent when it, any of its
affiliates (as defined by 47 CFR 1.2110), any of its controlling
interests, or any of the affiliates of its controlling interests, is in
default on any payment for any Commission construction permit or
license (including a down payment) or is delinquent on any non-tax debt
owed to any Federal agency as of the filing deadline for FCC Forms 175
in that auction. Accordingly, each applicant must certify under penalty
of perjury on its Form 175 that the applicant, any of its affiliates,
any of its controlling interests, and any of the affiliates of its
controlling interests are not in default on any payment for a
Commission construction permit or license (including a down payment)
and are not delinquent on any non-tax debt owed to any Federal agency.
For purposes of making this certification, the term controlling
interest is defined in 47 CFR 1.2105(a)(4)(i). If an Auction 83
applicant has an outstanding non-tax debt to the Commission or any
other federal agency, including any debts that results in a listing of
the applicant on the Commission's Red Light Display System, as of the
closing deadline of the remedial filing window, the applicant will be
unable to make the required certification that it is not currently in
default; if so, such applicant will be not eligible to participate in
Auction 83 bidding.
42. An Auction 83 applicant is considered a former defaulter or a
former delinquent when the applicant or any of its controlling
interests (as defined by 47 CFR 1.2105(a)(4)(i)) has defaulted on any
Commission construction permit or license (including a down payment) 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 prior to the remedial filing deadline in this
auction. A former defaulter or a former delinquent may participate
further in Auction 83 so long as it is otherwise qualified, and that
applicant makes an upfront payment that is 50 percent more than would
otherwise be required. An applicant must certify under penalty of
perjury whether it, along with any of its controlling interests, has
ever been in default on any payment for a Commission construction
permit or license (including a down payment) or has ever been
delinquent on any non-tax debt owed to any Federal agency, subject to
the exclusions described in the Auction 83 Procedures Public Notice.
43. In 2015, the Commission narrowed the scope of the individuals
and entities to be considered a former defaulter or a former
delinquent. For purposes of the certification under 47
[[Page 18447]]
CFR 1.2105(a)(2)(xii), the applicant may exclude from consideration any
cured default on a Commission construction permit or 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
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.
44. Applicants are encouraged to review previous guidance provided
by the Wireless Telecommunications Bureau on default and delinquency
disclosure requirements in the context of the auction short-form
application process. For example, it has been determined that, to the
extent that Commission rules permit late payment of regulatory or
application fees accompanied by late fees, such debts will become
delinquent for purposes of 47 CFR 1.2105(a) and 1.2106(a) only after
the expiration of a final payment deadline. Therefore, with respect to
regulatory or application fees, the provisions of 47 CFR 1.2105(a) and
1.2106(a) regarding default and delinquency in connection with
competitive bidding are limited to circumstances in which the relevant
party has not complied with a final Commission payment deadline.
Parties are also encouraged to consult with the Wireless
Telecommunications Bureau's Auctions and Spectrum Access Division staff
if they have any questions about default and delinquency disclosure
requirements.
45. 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, but 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.
46. The Bureaus remind 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 long-
form applications by auction winners, an auction applicant's lack of
current red light status is not necessarily determinative of its
eligibility to participate in an auction or of its upfront payment
obligation.
47. Moreover, applicants in Auction 83 should note that any long-
form applications filed after the close of bidding will be reviewed for
compliance with the Commission's red light rule, and such review may
result in the dismissal of a winning bidder's long-form application.
The Bureaus strongly encourage each applicant to carefully review all
records and other available federal agency databases and information
sources to determine whether the applicant, or any of its affiliates
(as defined in 47 CFR 1.2110), or any of its controlling interests, or
any of the affiliates of its controlling interests, owes or was ever
delinquent in the payment of non-tax debt owed to any federal agency.
III. Pre-Auction Procedures
A. Online Tutorial on Bidding Process--Available April 12, 2018
48. An educational auction tutorial became available on the Auction
83 web page on Thursday, April 12, 2018. The tutorial will remain
available and accessible anytime for reference in connection with the
procedures outlined in the Auction 83 Procedures Public Notice.
B. Revised Short-Form Applications--Due Prior to 6:00 p.m. ET on April
26, 2018
49. During the remedial filing window, each Auction 83 applicant
listed in Attachment A must, at a minimum, provide sufficient
information in the data fields of the form such that it is able to
certify and submit its Form 175 via the FCC's auction application
system. If any information in its Form 175 or its attachments is
inaccurate or otherwise needs to be updated, any such changes must be
reported in its Form 175 during the upcoming remedial filing window.
Attachment B of the Auction 83 Procedures Public Notice contains
instructions for updating short-form applications in the remedial
window. Updates to the short-form application must be submitted prior
to 6:00 p.m. ET on April 26, 2018. No application fee is required.
50. Previously submitted short-form applications may be viewed and
updated at any time from noon ET on April 16, 2018, until the filing
window closes at 6:00 p.m. ET on April 26, 2018. Applicants are
strongly encouraged to file early and are responsible for allowing
adequate time for filing their applications. Applications can be
updated or amended multiple times until the remedial filing deadline at
6:00 p.m. ET on April 26, 2018.
51. An applicant must click on the SUBMIT button on the ``Certify &
Submit'' screen to successfully submit its FCC Form 175 and any
modifications; otherwise the application or changes to the application
will not be received or reviewed by Commission staff.
C. Application Processing and Corrections of Deficiencies
52. The Commission will process all applications for permits listed
in Attachment A of the Auction 83 Procedures Public Notice that are
certified and submitted during the remedial filing window to determine
which are complete, incomplete, or incomplete-disqualified. Subsequent
to the remedial filing window the Bureaus will issue a public notice
identifying the status of each application. An applicant whose
application is incomplete will have a limited opportunity to address
deficiencies during a resubmission window, the dates for which will be
announced in a future public notice. If a listed Auction 83 applicant
does not certify and submit its Form 175 auction application during the
remedial filing window, its application will be designated as
incomplete-disqualified, and the applicant will be disqualified from
further participation in Auction 83.
53. Commission staff will communicate only with an applicant's
contact person or certifying official, as designated on the short-form
application, unless the applicant's certifying official or contact
person notifies the Commission in writing that applicant's counsel or
other representative is authorized to speak on its behalf.
Authorizations may be sent by email to [email protected].
D. Upfront Payments--Due May 31, 2018
54. In order to be eligible to bid in this auction, a sufficient
upfront payment and a complete and accurate FCC Remittance Advice Form
(FCC Form 159) must be submitted prior to 6:00 p.m. ET on May 31, 2018,
following the procedures outlined below and the instructions in
Attachment C to the
[[Page 18448]]
Auction 83 Procedures Public Notice. After completing its short-form
application, an applicant will have access to an electronic version of
the FCC Form 159. This Form 159 can be printed and the completed form
must be sent by fax to the FCC at (202) 418-2843.
1. Making Upfront Payments by Wire Transfer
55. Wire transfer payments must be received before 6:00 p.m. ET on
May 31, 2018. No other payment method is acceptable. Specifically, the
Commission will not accept checks, credit cards or automated clearing
house payments. To avoid untimely payments, applicants should discuss
arrangements (including bank closing schedules) with their bankers
several days before they plan to make the wire transfer, and allow
sufficient time for the transfer to be initiated and completed before
the deadline. The BNF Account Number is specific to the upfront
payments for this auction. Do not use BNF Account Number from previous
auctions. The following information will be needed:
ABA Routing Number: 021000021
Receiving Bank: JP Morgan Chase
Beneficiary: FCC/Account #267516869
Originating Bank Information (OBI Field): (Skip one space between each
information item) ``AUCTIONPAY''
Applicant FCC Registration Number (FRN): (same as FCC Form 159, block
21)
Payment Type Code: (same as FCC Form 159, block 24A: ``U083'')
FCC Code 1: (same as FCC Form 159, block 28A: ``83'')
Payer Name: (same as FCC Form 159, block 2)
Payer FCC Registration Number (FRN): (If different from applicant FRN):
#
56. At least one hour before placing the order for the wire
transfer (but on the same business day), applicants must fax a
completed FCC Form 159 (Revised 2/03) to the FCC at (202) 418-2843. On
the fax cover sheet, write ``Wire Transfer--Auction Payment for Auction
83.'' In order to meet the upfront payment deadline, an applicant's
payment must be credited to the Commission's account for Auction 83
before the deadline.
57. Each applicant is responsible for ensuring timely submission of
its upfront payment and for timely filing of an accurate and complete
FCC Remittance Advice Form (FCC Form 159). An applicant should
coordinate with its financial institution well ahead of the due date
regarding its wire transfer. The Commission repeatedly has cautioned
auction participants about the importance of planning ahead to prepare
for unforeseen last-minute difficulties in making payments by wire
transfer. Each applicant also is responsible for obtaining confirmation
from its financial institution that its wire transfer to JP Morgan
Chase was successful and from Commission staff that its upfront payment
was timely received and that it was deposited into the proper account.
To receive confirmation from Commission staff, contact Gail Glasser of
the Office of Managing Director's Revenue & Receivables Operations
Group/Auctions at (202) 418-0578, or alternatively, Theresa Meeks at
(202) 418-2945.
58. All upfront payments must be made in U.S. dollars. All upfront
payments must be made by wire transfer. Upfront payments for Auction 83
go to an account number different from the accounts used in previous
FCC auctions. Failure to deliver a sufficient upfront payment as
instructed in the Auction 83 Procedures Public Notice by the deadline
on May 31, 2018 will result in dismissal of the short-form application
and disqualification from further participation in the auction.
2. FCC Form 159
59. An accurate and complete FCC Remittance Advice Form (FCC Form
159, Revised 2/03) must be faxed to the FCC at (202) 418-2843 to
accompany each upfront payment. Proper completion of this form is
critical to ensuring correct crediting of upfront payments. Detailed
instructions for completion of FCC Form 159 are included in Attachment
C. An electronic pre-filled version of the FCC Form 159 is available
after submitting the FCC Form 175. Payers using the pre-filled FCC Form
159 are responsible for ensuring that all of the information on the
form, including payment amounts, is accurate.
3. Upfront Payments and Bidding Eligibility
60. Applicants must make upfront payments sufficient to obtain
bidding eligibility on the construction permits on which they will bid.
The Bureaus proposed in the Auction 83 Comment Public Notice that the
amount of the upfront payment would determine a bidder's initial
bidding eligibility, the maximum number of bidding units on which a
bidder may place bids in any single round. The Bureaus received no
comment on the proposal that the upfront payment amount would determine
a bidder's initial bidding eligibility, and this proposal is adopted.
61. Under the Bureaus' proposal, in order to bid on a particular
construction permit, otherwise qualified bidders that are designated in
Attachment A of the Auction 83 Procedures Public Notice for that
construction permit must have a current eligibility level that meets or
exceeds the number of bidding units assigned to that construction
permit. At a minimum, therefore, an applicant's total upfront payment
must be enough to establish eligibility to bid on at least one of the
construction permits designated for that applicant in Attachment A of
the Auction 83 Procedures Public Notice, or else the applicant will not
be eligible to participate in the auction. An applicant does not have
to make an upfront payment to cover all construction permits designated
for that applicant in Attachment A of the Auction 83 Procedures Public
Notice, but only enough to cover the maximum number of bidding units
that are associated with construction permits on which they wish to
place bids and hold provisionally winning bids in any given round. (A
provisionally winning bid is a bid that would become a final winning
bid if the auction were to close after the given round.) The total
upfront payment does not affect the total dollar amount the bidder may
bid on any given construction permit.
62. In the Auction 83 Comment Public Notice, the Bureaus proposed
an upfront payment for each construction permit, taking into account
various factors related to the efficiency of the auction process and
the potential value of similar spectrum, and sought comment on this
proposal. The Bureaus received no comment on the specified upfront
payment amounts for each construction permit in Auction 83, and the
proposed upfront payment amounts are adopted. The specific upfront
payment amounts and bidding units for each construction permit are set
forth in Attachment A of the Auction 83 Procedures Public Notice.
63. In calculating its upfront payment amount, an applicant should
determine the maximum number of bidding units on which it may wish to
be active (bid on or hold provisionally winning bids on) in any single
round, and submit an upfront payment amount covering that number of
bidding units. In order to make this calculation, an applicant should
add together the bidding units for all construction permits on which it
seeks to be active in any given round. Applicants should check their
calculations carefully, as there is no provision for increasing a
bidder's eligibility after the upfront payment deadline. A qualified
bidder's maximum eligibility will not exceed the sum of the bidding
units associated with the total
[[Page 18449]]
number of construction permits identified for that applicant in
Attachment A of the Auction 83 Procedures Public Notice.
64. Applicants that are former defaulters, as described in the
Auction 83 Procedures Public Notice, must pay upfront payments 50
percent greater than non-former defaulters. For this classification as
a former defaulter or a former delinquent, defaults and delinquencies
of the applicant itself and its controlling interests are included. For
this purpose, the term controlling interest is defined in 47 CFR
1.2105(a)(4)(i). If a former defaulter fails to submit a sufficient
upfront payment to establish eligibility to bid on at least one of the
construction permits designated for that applicant in Attachment A of
the Auction 83 Procedures Public Notice, that applicant will not be
eligible to participate further in Auction 83. This applicant will
retain its status as an applicant in Auction 83, and will remain
subject to 47 CFR 1.2105(c) and 73.5002(d).
65. If an applicant is a former defaulter, it must calculate its
upfront payment for all of its identified construction permits by
multiplying the number of bidding units on which it wishes to be active
by 1.5. In order to calculate the number of bidding units to assign to
former defaulters, the Commission will divide the upfront payment
received by 1.5 and round the result up to the nearest bidding unit.
E. Auction Registration
66. At least one week before the beginning of bidding in the
auction, the Bureaus will issue a public notice announcing all
qualified bidders for the auction. Qualified bidders are those
applicants with submitted FCC Form 175 applications that are deemed
timely filed, accurate, and substantially complete, provided that such
applicants have timely submitted an upfront payment that is sufficient
to qualify them to bid.
67. All qualified bidders are automatically registered for the
auction. Registration materials will be distributed prior to the
auction by overnight mail. The mailing will be sent only to the contact
person at the contact address listed in the FCC Form 175 and will
include the SecurID[supreg] tokens that will be required to place bids,
the web address and instructions for accessing and logging in to the
auction bidding system, an FCC assigned username (User ID) for each
authorized bidder, and the Auction Bidder Line phone number.
68. Qualified bidders that do not receive this registration mailing
will not be able to submit bids. Therefore, if this mailing is not
received by noon on Thursday, June 14, 2018, the contact, certifier or
authorized bidder listed on that applicant's Form 175 needs to 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.
69. In the event that SecurID[supreg] tokens are lost or damaged,
only a person who has been designated as an authorized bidder, the
contact person, or the certifying official on the applicant's short-
form application may request replacements. To request replacement of
these items, call Technical Support at (877) 480-3201, option nine;
(202) 414-1250; or (202) 414-1255 (TTY).
F. Remote Electronic Bidding
70. The Commission will conduct this auction over the internet, and
telephonic bidding will be available as well. Only qualified bidders
are permitted to bid. Each applicant should indicate its bidding
preference, electronic or telephonic, on its FCC Form 175. In either
case, each authorized bidder must have its own SecurID[supreg] token,
which the Commission will provide at no charge. Each applicant with one
authorized bidder will be issued two SecurID[supreg] tokens, while
applicants with two or three authorized bidders will be issued three
tokens. For security purposes, the SecurID[supreg] tokens, bidding
system web address, FCC assigned username, and the telephonic bidding
telephone number are only mailed to the contact person at the contact
address listed on the FCC Form 175. Each SecurID[supreg] token is
tailored to a specific auction. SecurID[supreg] tokens issued for other
auctions or obtained from a source other than the FCC will not work for
Auction 83.
G. Mock Auction--June 19, 2018
71. All qualified bidders will be eligible to participate in a mock
auction on Tuesday, June 19, 2018. The mock auction will enable bidders
to become familiar with the FCC auction bidding system prior to the
auction. The Bureaus strongly recommend that all bidders participate in
the mock auction. Details will be announced by public notice.
IV. Auction
72. The first round of bidding for Auction 83 will begin on
Thursday, June 21, 2018. The initial bidding schedule will be announced
in a public notice listing the qualified bidders, which is released at
least one week before the start of the auction.
A. Auction Structure
1. Simultaneous Multiple Round Auction
73. In the Auction 83 Comment Public Notice, the Bureaus proposed
to auction all construction permits listed in Attachment A of the
Auction 83 Procedures Public Notice in a single auction using the
Commission's standard simultaneous multiple-round auction format. This
type of auction offers every construction permit for bid at the same
time and consists of successive bidding rounds in which qualified
bidders may place bids on individual construction permits. The Bureaus
received no comment on this proposal, and this proposal is adopted.
Unless otherwise announced, bids will be accepted on all construction
permits in each round of the auction until bidding stops on every
construction permit.
2. Eligibility and Activity Rules
74. As discussed in the Auction 83 Procedures Public Notice, the
Bureaus will use upfront payments to determine initial (maximum)
bidding eligibility (as measured in bidding units) for Auction 83. The
amount of the upfront payment submitted by a bidder determines initial
bidding eligibility, the maximum number of bidding units on which a
bidder may be active. As noted earlier, each construction permit is
assigned a specific number of bidding units as listed in Attachment A
of the Auction 83 Procedures Public Notice. Bidding units assigned to
each construction permit do not change as prices rise during the
auction. Upfront payments are not attributed to specific construction
permits. Rather, a bidder may place bids on any of the construction
permits for which it is designated an applicant in Attachment A of the
Auction 83 Procedures Public Notice as long as the total number of
bidding units associated with those construction permits does not
exceed its current eligibility. Eligibility cannot be increased during
the auction; it can only remain the same or decrease. Thus, in
calculating its upfront payment amount and therefore its initial
bidding eligibility, an applicant must determine the maximum number of
bidding units on which it may wish to bid or hold provisionally winning
bids in any single round, and submit an upfront payment amount covering
that total number of bidding units. At a minimum, an applicant's
upfront payment must cover the bidding units for at least one of the
[[Page 18450]]
construction permits for which it is designated an applicant in
Attachment A of the Auction 83 Procedures Public Notice. The total
upfront payment does not affect the total dollar amount a bidder may
bid on any given construction permit. The Bureaus received no comments
on the bidding eligibility proposals, and these proposals are adopted.
75. In order to ensure that an auction closes within a reasonable
period of time, an activity rule requires bidders to bid actively
throughout the auction, rather than wait until late in the auction
before participating. Bidders are required to be active on a specific
percentage of their current bidding eligibility during each round of
the auction.
76. A bidder's activity level in a round is the sum of the bidding
units associated with construction permits covered by the bidder's new
bids in the current round and provisionally winning bids from the
previous round. A provisionally winning bid is a bid that would become
a final winning bid if the auction were to close after the given round.
77. The Bureaus received no comment on the activity rule proposal.
Therefore, the Bureaus adopt the following activity requirement: A
bidder is required to be active on 100 percent of its current
eligibility during each round of the auction. That is, a bidder must
either place a bid or be a provisionally winning bidder during each
round of the auction. Failure to maintain the requisite activity level
will result in the use of an activity rule waiver, if any remain, or a
reduction in the bidder's eligibility, possibly curtailing or
eliminating the bidder's ability to place additional bids in the
auction.
3. Activity Rule Waivers
78. In the Auction 83 Comment Public Notice, the Bureaus proposed
that each bidder in the auction be provided with three activity rule
waivers. The Bureaus received no comment on this issue.
79. Therefore, the Bureaus adopt this proposal to provide bidders
with three activity rule waivers. Bidders may use an activity rule
waiver in any round during the course of the auction. Use of an
activity rule waiver preserves the bidder's eligibility despite its
activity in the current round being below the required minimum activity
level. An activity rule waiver applies to an entire round of bidding,
not to a particular construction permit. Activity rule waivers can be
either proactive or automatic. Activity rule waivers are principally a
mechanism for a bidder to avoid the loss of bidding eligibility in the
event that exigent circumstances prevent it from bidding in a
particular round.
80. The FCC auction bidding system will assume that a bidder that
does not meet the activity requirement would prefer to use an activity
rule waiver (if available) rather than lose bidding eligibility.
Therefore, the system will automatically apply a waiver at the end of
any bidding round in which a bidder's activity level is below the
minimum required unless (1) the bidder has no activity rule waivers
remaining or (2) the bidder overrides the automatic application of a
waiver by reducing eligibility, thereby meeting the activity
requirement. If a bidder has no waivers remaining and does not satisfy
the required activity level, the bidder's current eligibility will be
permanently reduced, possibly curtailing or eliminating the ability to
place additional bids in the auction.
81. A bidder with insufficient activity may wish to reduce its
bidding eligibility rather than use an activity rule waiver. If so, the
bidder must affirmatively override the automatic waiver mechanism
during the bidding round by using the reduce eligibility function in
the FCC auction bidding system. In this case, the bidder's eligibility
would be permanently reduced to bring it into compliance with the
activity rule described in the Auction 83 Procedures Public Notice.
Reducing eligibility is an irreversible action; once eligibility has
been reduced, a bidder cannot regain its lost bidding eligibility.
82. Also, a bidder may apply an activity rule waiver proactively as
a means to keep the auction open without placing a bid. If a bidder
proactively were to apply an activity rule waiver (using the proactive
waiver function in the FCC auction bidding system) during a bidding
round in which no bid is placed, the auction will remain open and the
bidder's eligibility will be preserved. An automatic waiver applied by
the FCC auction bidding system in a round in which there is no new bid
or no proactive waiver will not keep the auction open.
4. Auction Stopping Rule
83. For Auction 83, the Bureaus proposed to employ a simultaneous
stopping rule approach, which means all construction permits remain
available for bidding until bidding stops on every construction permit.
Specifically, bidding will close on all construction permits after the
first round in which no bidder submits any new bid or applies a
proactive waiver.
84. The Bureaus also sought comment on alternative versions of the
simultaneous stopping rule for Auction 83. (1) The auction would close
for all construction permits after the first round in which no bidder
applies a waiver or places any new bid on a construction permit for
which it is not the provisionally winning bidder. Thus, absent any
other bidding activity, a bidder placing a new bid on a construction
permit for which it is the provisionally winning bidder would not keep
the auction open under this modified stopping procedure. (2) The
auction would close for all construction permits after the first round
in which no bidder applies a proactive waiver or places any new bid on
a construction permit that already has a provisionally winning bid.
Thus, absent any other bidding activity, a bidder placing a new bid on
an FCC-held construction permit (a construction permit that does not
have a provisionally winning bid) would not keep the auction open under
this modified stopping procedure. (3) The auction would close using a
modified version of the simultaneous stopping procedure that combines
options (1) and (2). (4) The auction would close after a specified
number of additional rounds (special stopping procedure) to be
announced by the Bureaus. If the Bureaus invoke this special stopping
procedure, they will accept bids in the specified final round(s), after
which the auction will close. (5) The auction would remain open even if
no bidder places any new bids or applies a waiver. In this event, the
effect will be the same as if a bidder had applied a waiver. The
activity rule will apply as usual, and a bidder with insufficient
activity will either lose bidding eligibility or use a waiver.
85. The Bureaus proposed to exercise these options only in certain
circumstances, for example, where the auction is proceeding unusually
slowly or quickly, there is minimal overall bidding activity, or it
appears likely that the auction will not close within a reasonable
period of time or will close prematurely. Before exercising these
options, the Bureaus are likely to attempt to change the pace of the
auction. For example, the Bureaus may adjust the pace of bidding by
changing the number of bidding rounds per day and/or the minimum
acceptable bids. The Bureaus proposed to retain the discretion to
exercise any of these options with or without prior announcement during
the auction. The Bureaus received no comment on these proposals and
adopt them for Auction 83.
[[Page 18451]]
5. Auction Delay, Suspension, or Cancellation
86. The Bureaus received no comment on their proposals in the
Auction 83 Comment Public Notice regarding auction delay, suspension,
or cancellation, and adopt them. By public notice and/or by
announcement through the FCC auction bidding system, the Bureaus may
delay, suspend, or cancel bidding in the auction in the event of
natural disaster, technical obstacle, administrative or weather
necessity, evidence of an auction security breach or unlawful bidding
activity, or for any other reason that affects the fair and efficient
conduct of competitive bidding. In such cases, the Bureaus, in their
sole discretion, may elect to resume the auction starting from the
beginning of the current round or from some previous round, or cancel
the auction in its entirety. Network interruption may cause the Bureaus
to delay or suspend the auction. The Bureaus emphasize that they will
exercise this authority solely at their discretion, and not as a
substitute for situations in which bidders may wish to apply their
activity rule waivers.
B. Bidding Procedures
1. Round Structure
87. The initial schedule of bidding rounds will be announced in the
public notice listing the qualified bidders, which is released at least
one week before the start of bidding in the auction. Each bidding round
is followed by the release of round results. Multiple bidding rounds
may be conducted each day.
88. In the Auction 83 Comment Public Notice, the Bureaus proposed
to retain the discretion to change the bidding schedule in order to
foster an auction pace that reasonably balances speed with the bidders'
need to study round results and adjust their bidding strategies. The
Bureaus received no comment on these proposals, and adopt them for
Auction 83. The Bureaus may change the amount of time for the bidding
rounds, the amount of time between rounds, or the number of rounds per
day, depending upon bidding activity and other factors.
2. Reserve Price and Minimum Opening Bids
89. A reserve price is an absolute minimum price below which a
construction permit or license will not be sold in a specific auction.
In the Auction 83 Comment Public Notice, the Bureaus did not propose to
establish reserve prices for the construction permits listed in
Attachment A. The Bureaus did not receive comment on this proposal, and
adopt it.
90. A minimum opening bid is the minimum bid price set at the
beginning of the auction below which no bids are accepted. The Bureaus
in the Auction 83 Comment Public Notice sought comment on specifically
proposed minimum opening bid amounts for each construction permit
listed in Attachment A to the Auction 83 Procedures Public Notice.
Specifically, a minimum opening bid was proposed for each construction
permit by taking into account various factors relating to the
efficiency of the auction and the potential value of the spectrum,
including the type of service and class of facility offered, market
size, population covered by the proposed broadcast facility, industry
cash flow data, and recent broadcast transactions.
91. The Bureaus received no comment on the proposed minimum opening
bid amounts, and therefore the Bureaus adopt the minimum opening bid
amounts proposed in the Auction 83 Comment Public Notice. The specific
minimum opening bid amounts for each of the construction permits are
again specified in Attachment A to the Auction 83 Procedures Public
Notice.
3. Bid Amounts
92. In the Auction 83 Comment Public Notice, the Bureaus proposed
that in each round, if the bidder has sufficient eligibility to place a
bid on the particular construction permit, an eligible bidder will be
able to place a bid on a given construction permit in any of up to nine
different amounts. Under the proposal, the FCC auction bidding system
interface will list the nine acceptable bid amounts for each
construction permit. The Bureaus received no comment on this proposal;
therefore, it is adopted.
93. For calculation of the nine acceptable bid amounts for each
construction permit, the Bureaus did not receive any comment on a
proposal to use 10 percent for a minimum acceptable bid increment
percentage and to use 5 percent for an additional bid increment
percentage. Therefore, the Bureaus will begin the auction with a
minimum acceptable bid increment percentage of 10 percent and an
additional bid increment percentage of 5 percent.
94. In Auction 83, the minimum acceptable bid amount for a
construction permit will be equal to its minimum opening bid amount
until there is a provisionally winning bid for the construction permit.
After there is a provisionally winning bid for a construction permit,
the minimum acceptable bid amount will be calculated by multiplying the
provisionally winning bid amount by one plus the minimum acceptable bid
percentage, i.e., provisionally winning bid amount * 1.10, rounded
under the Commission's standard rounding procedures for auctions as
described in the Auction 83 Procedures Public Notice.
95. In Auction 83, the FCC auction bidding system will calculate
the eight additional bid amounts by multiplying the minimum acceptable
bid amount by the additional bid increment percentage of 5 percent, and
that result (rounded) is the additional increment amount. The first
additional acceptable bid amount equals the minimum acceptable bid
amount plus the additional increment amount. The second additional
acceptable bid amount equals the minimum acceptable bid amount plus two
times the additional increment amount; the third additional acceptable
bid amount is the minimum acceptable bid amount plus three times the
additional increment amount, etc. Because the additional bid increment
percentage is 5 percent, the calculation of the additional increment
amount is (minimum acceptable bid amount) * (0.05), rounded. The first
additional acceptable bid amount equals (minimum acceptable bid amount)
+ (additional increment amount); the second additional acceptable bid
amount equals (minimum acceptable bid amount) + (2 * (additional
increment amount)); the third additional acceptable bid amount equals
(minimum acceptable bid amount) + (3 * (additional increment amount));
etc.
96. The Bureaus proposed to retain the discretion to change the
minimum acceptable bid amounts, the minimum acceptable bid percentage,
the additional bid increment percentage, and the number of acceptable
bid amounts if the Bureaus determine that circumstances so dictate.
Further, the Bureaus proposed to retain the discretion to do so on a
construction permit-by-construction permit basis. The Bureaus also
proposed to retain the discretion to limit (a) the amount by which a
minimum acceptable bid for a construction permit may increase compared
with the corresponding provisionally winning bid, and (b) the amount by
which an additional bid amount may increase compared with the
immediately preceding acceptable bid amount. For example, the Bureaus
could set a $1,000 limit on increases in minimum acceptable bid amounts
over provisionally winning bids. Thus, if calculating a minimum
acceptable bid using the minimum acceptable bid
[[Page 18452]]
percentage results in a minimum acceptable bid amount that is $1,200
higher than the provisionally winning bid on a construction permit, the
minimum acceptable bid amount would instead be capped at $1,000 above
the provisionally winning bid.
97. The Bureaus did not receive any comment on their proposals to
retain the discretion to change bid amounts as described in the Auction
83 Procedures Public Notice, if they determine that circumstances so
dictate. The Bureaus adopt these proposals. If the Bureaus exercise
this discretion, they will alert bidders by announcement in the FCC
auction bidding system during the auction.
4. Provisionally Winning Bids
98. The FCC auction bidding system at the end of each bidding round
will determine a provisionally winning bid for each construction permit
based on the highest bid amount received for that permit. A
provisionally winning bid will remain the provisionally winning bid
until there is a higher bid on the same construction permit at the
close of a subsequent round. Provisionally winning bids at the end of
the auction become the winning bids.
99. In the Auction 83 Comment Public Notice, the Bureaus proposed
to use a pseudo-random number generator to select a single
provisionally winning bid in the event of identical high bid amounts
being submitted on a construction permit in a given round (i.e., tied
bids). No comments were received on this proposal. Hence, the Bureaus
adopt this tied bids proposal.
100. Accordingly, the FCC auction bidding system will assign a
pseudo-random number to each bid upon submission. The tied bid with the
highest pseudo-random number wins the tiebreaker, and becomes the
provisionally winning bid. The remaining bidders, as well as the
provisionally winning bidder, can submit higher bids in subsequent
rounds. However, if the auction were to close with no other bids being
placed, the winning bidder would be the one that placed the
provisionally winning bid. If the construction permit receives any bids
in a subsequent round, the provisionally winning bid again will be
determined by the highest bid amount received for the construction
permit.
101. A provisionally winning bid will be retained until there is a
higher bid on the construction permit at the close of a subsequent
round. As a reminder, provisionally winning bids count toward activity
for purposes of the activity rule.
5. Bidding
102. All bidding will take place remotely either through the FCC
auction bidding system or by telephonic bidding. There will be no on-
site bidding during Auction 83. Please note that telephonic bid
assistants are required to use a script when entering bids placed by
telephone. Telephonic bidders are therefore reminded to allow
sufficient time to bid by placing their calls well in advance of the
close of a round. The length of a call to place a telephonic bid may
vary; please allow a minimum of ten minutes.
103. An Auction 83 bidder's ability to bid on specific construction
permits is determined by two factors: (1) The construction permits
designated for that applicant in Attachment A of the Auction 83
Procedures Public Notice and (2) the bidder's eligibility. The bid
submission screens will allow bidders to submit bids on only those
construction permits designated for that applicant in Attachment A of
the Auction 83 Procedures Public Notice.
104. In order to access the bidding function of the FCC auction
bidding system, bidders must be logged in during the bidding round
using the passcode generated by the SecurID[supreg] token and a
personal identification number (PIN) created by the bidder. Bidders are
strongly encouraged to print a round summary for each round after they
have completed all of their activity for that round.
105. If a bidder has sufficient eligibility to place a bid on the
particular construction permit, eligible bidders will be able to place
bids on a given construction permit in any of up to nine pre-defined
bid amounts in each round. For each construction permit, the FCC
auction bidding system will list the acceptable bid amounts in a drop-
down box. Bidders use the drop-down box to select from among the
acceptable bid amounts. The FCC auction bidding system also includes an
upload function that allows text files containing bid information to be
uploaded.
106. Until a bid has been placed on a construction permit, the
minimum acceptable bid amount for that permit will be equal to its
minimum opening bid amount. Once there are bids on a permit, minimum
acceptable bids for the following round will be determined as described
in the Auction 83 Procedures Public Notice.
107. During a round, an eligible bidder may submit bids for as many
construction permits as it wishes (providing that it is eligible to bid
on the specific permits), remove bids placed in the current bidding
round, or permanently reduce eligibility. If multiple bids are
submitted for the same construction permit in the same round, the
system takes the last bid entered as that bidder's bid for the round.
Bidding units associated with construction permits for which the bidder
has removed bids do not count towards current activity.
6. Bid Removal and Bid Withdrawal
108. In the Auction 83 Comment Public Notice, the Bureaus explained
bid removal procedures in the FCC auction bidding system. Each
qualified bidder has the option of removing any bids placed in a round
provided that such bids are removed before the close of that bidding
round. By removing a bid within a round, a bidder effectively unsubmits
the bid. A bidder removing a bid placed in the same round is not
subject to withdrawal payments. Removing a bid will affect a bidder's
activity because a removed bid no longer counts toward bidding activity
for the round. Once a round closes, a bidder may no longer remove a
bid.
109. In the Auction 83 Comment Public Notice, the Bureaus proposed
to prohibit bidders from withdrawing any bid after close of the round
in which that bid was placed. The Bureaus received no comment on this
issue of bid withdrawal. Accordingly, the Bureaus will prohibit bid
withdrawals in Auction 83. Bidders are cautioned to select bid amounts
carefully because no bid withdrawals will be allowed, even if a bid was
mistakenly or erroneously made.
7. Round Results
110. Reports reflecting bidders' identities for Auction 83 will be
available before and during the auction. Thus, bidders will know in
advance of this auction the identities of the bidders against which
they are bidding.
111. Bids placed during a round will not be made public until the
conclusion of that round. After a round closes, the Bureaus will
compile reports of all bids placed, current provisionally winning bids,
new minimum acceptable bid amounts for the following round, whether the
construction permit is FCC-held, and bidder eligibility status (bidding
eligibility and activity rule waivers), and post the reports for public
access.
8. Auction Announcements
112. The Commission will use auction announcements to report
necessary information such as schedule changes. All auction
announcements will be available by clicking a link in the FCC auction
bidding system.
[[Page 18453]]
V. Post-Auction Procedures
113. Shortly after bidding has ended, the Commission will issue a
public notice declaring the auction closed, identifying the winning
bidders, and establishing deadlines for submitting down payments, final
payments, and long-form applications (FCC Forms 349).
A. Down Payments
114. Within ten business days after release of the auction closing
public notice, each winning bidder must submit sufficient funds (in
addition to its upfront payment) to bring its total amount of money on
deposit with the Commission for Auction 83 to twenty percent of the net
amount of its winning bids (gross bids less any applicable new entrant
bidding credits).
B. Final Payments
115. Each winning bidder will be required to submit the balance of
the net amount for each of its winning bids within ten business days
after the applicable deadline for submitting down payments.
C. Long-Form Applications (FCC Form 349)
116. The Commission's rules currently provide that within thirty
days following the close of bidding and notification to the winning
bidders, unless a longer period is specified by public notice, winning
bidders must electronically submit a properly completed long-form
application (FCC Form 349, Application for Authority to Construct or
Make Changes in an FM Translator or FM Booster Station) and required
exhibits for each construction permit won through Auction 83. Winning
bidders claiming new entrant status must include an exhibit
demonstrating their eligibility for the bidding credit. The
Commission's rules also provide that a winning bidder in a commercial
broadcast spectrum auction is required to submit an application filing
fee with its post-auction long-form application. Further instructions
on these and other filing requirements will be provided to winning
bidders in the auction closing public notice. An Auction 83 applicant
that has its long-form application dismissed will be deemed to have
defaulted and will be subject to default payments under 47 CFR
1.2104(g) and 1.2109(c).
D. Default and Disqualification
117. Any winning bidder that defaults or is disqualified after the
close of the auction (i.e., fails to remit the required down payment by
the specified deadline, fails to submit a timely long-form application,
fails to make a full and timely final payment, or is otherwise
disqualified) is liable for default payments as described in 47 CFR
1.2104(g)(2). This payment consists of a deficiency payment, equal to
the difference between the amount of the Auction 83 bidder's winning
bid and the amount of the winning bid the next time a construction
permit covering the same spectrum is won in an auction, plus an
additional payment equal to a percentage of the defaulter's bid or of
the subsequent winning bid, whichever is less.
118. In the Auction 83 Comment Public Notice, the Bureaus proposed
to set the percentage of the applicable bid to be assessed as an
additional payment for any Auction 83 default at 20 percent of the
applicable bid. The Bureaus received no comment on this proposal, and
it is therefore adopted.
119. Finally, in the event of a default, the Commission has the
discretion to re-auction the construction permit 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.
E. Refund of Remaining Upfront Payment Balance
120. All refunds of upfront payment balances will be returned to
the payer of record as identified on the FCC Form 159 unless the payer
submits written authorization instructing otherwise. To access the
refund form, bidders are encouraged to use the Refund Information icon
found on the Auction Application Manager page or through the Refund
Form link available on the Auction Application Submit Confirmation page
in the FCC auction application system. After the required information
is completed on the blank form, the form should be printed, signed, and
submitted to the Commission by mail or fax as instructed below.
121. If a bidder has elected not to complete the Refund Form
through the Auction Application Manager page, the Commission is
requesting that all information listed below be supplied in writing.
Name, address, contact and phone number of Bank
ABA Number
Account Number to Credit
Name of Account Holder
FCC Registration Number (FRN)
The refund request must be submitted by fax to the Revenue &
Receivables Operations Group/Auctions at (202) 418-2843 or by mail to:
Federal Communications Commission, Financial Operations, Revenue &
Receivables Operations Group/Auctions, Gail Glasser, 445 12th Street
SW, Room 1-C864, Washington, DC 20554.
Note: Refund processing generally takes up to two weeks to
complete. Bidders with questions about refunds should contact Gail
Glasser at (202) 418-0578 or Theresa Meeks at (202) 418-2945.
VI. Final Regulatory Flexibility Certification
122. The Regulatory Flexibility Act of 1980, as amended (RFA), 5
U.S.C. 603, requires that a regulatory flexibility analysis be prepared
for a notice-and-comment rulemaking proceeding, unless the agency
certifies that the rule will not, if promulgated, have a significant
economic impact on a substantial number of small entities. 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, 5
U.S.C. 601(3). 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). 15 U.S.C 632.
123. As required by the RFA, an Initial Regulatory Flexibility
Certification (IRFC) was incorporated in the January 16, 2018, public
notice seeking comment on competitive bidding procedures to be used in
Auction 83. A summary of this public notice was published at 83 FR
4455, Jan. 31, 2018. The Auction 83 Procedures Public Notice implements
competitive bidding rules adopted by the Commission in multiple notice-
and-comment rulemaking proceedings, as well as establishes by the
Bureaus, on delegated authority, additional procedures for competitive
bidding in Auction 83 for certain FM translator construction permits.
More specifically, the Public Notice provides an overview of the
procedures, terms and conditions governing Auction 83 and the post-
auction application and payment processes. The Public Notice also
[[Page 18454]]
provides instructions for Auction 83 applicants to review, verify and
update their previously filed short-form applications during the
upcoming Remedial Window, as required. In addition, the Public Notice
addresses three filings submitted by parties in response to the Auction
83 Comment Public Notice.
124. Auction 83 is a closed auction, therefore the specific
competitive bidding procedures and minimum opening bid amounts
described in the Auction 83 Comment Public Notice will affect only the
57 individuals or entities listed in Attachment A to the Auction 83
Procedures Public Notice who are eligible to complete the remaining
steps to become qualified to bid in this auction. The latest available
U.S. Census Bureau data show that there were 2,849 radio station firms
that operated in 2012. Of that number 2,806 firms operated with annual
receipts below the SBA's small business size standard of firms having
$38.5 million or less in annual receipts. The 57 eligible individuals
or entities for Auction 83 include firms of all sizes and constitute
approximately two percent of all firms that operated and of firms
meeting the SBA small business size standard. Consequently, because the
proposed procedures and minimum opening bid amounts would affect a
maximum of 57 radio station firms, or approximately two percent of the
total, and not all 57 are small entities, the Bureaus find that a
substantial number of small entities would not be affected by these
competitive bidding procedures or minimum opening bid amounts contained
in the Auction 83 Procedures Public Notice. Therefore, the Bureaus
certify that these competitive bidding procedures and minimum opening
bid amounts announced in the Auction 83 Procedures Public Notice will
not have a significant economic impact on a substantial number of small
entities.
125. The Bureaus will send a copy of the Auctions 83 Procedures
Public Notice, including this Final Regulatory Flexibility
Certification, in a Report to Congress pursuant to the Congressional
Review Act, 5 U.S.C. 801(a)(1)(A). In addition, the Auctions 83
Procedures Public Notice and this Final Regulatory Flexibility
Certification will be sent to the Chief Counsel for Advocacy of the SBA
pursuant to 5 U.S.C. 605(b).
Federal Communications Commission.
Gary Michaels,
Deputy Chief, Auctions and Spectrum Access Division, WTB.
[FR Doc. 2018-08635 Filed 4-26-18; 8:45 am]
BILLING CODE 6712-01-P