Auction of Cross-Service FM Translator Construction Permits Scheduled for June 25, 2019; Notice and Filing Requirements, Minimum Opening Bids, Upfront Payments, and Other Procedures for Auction 100, 28751-28761 [2019-13100]

Agencies

• FEDERAL COMMUNICATIONS COMMISSION

[Federal Register Volume 84, Number 119 (Thursday, June 20, 2019)]
[Rules and Regulations]
[Pages 28751-28761]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-13100]



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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 1, 73, and 74

[AU Docket No. 17-329; DA 19-273]


Auction of Cross-Service FM Translator Construction Permits 
Scheduled for June 25, 2019; Notice and Filing Requirements, Minimum 
Opening Bids, Upfront Payments, and Other Procedures for Auction 100

AGENCY: Federal Communications Commission.

ACTION: Final action; requirements and procedures.

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SUMMARY: This document summarizes procedures and announces upfront 
payment amounts and minimum opening bids for the auction of certain 
cross-service FM translator construction permits. The Public Notice 
summarized here is intended to familiarize applicants with the 
procedures and other requirements for participation in Auction 100.

DATES: Upfront payments are due on May 23, 2019. Bidding in Auction 100 
is scheduled to start on June 25, 2019.

FOR FURTHER INFORMATION CONTACT: For auction legal questions, Lynne 
Milne in the Office of Economics and Analytics' Auctions Division at 
(202) 418-0660. For auction process and procedures, the FCC Auctions 
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 the Auction 100 
Procedures Public Notice, released April 17, 2019. The complete text of 
the Auction 100 Procedures Public Notice, including attachments and any 
related document, is available for public inspection and copying from 
8:00 a.m. to 4:30 p.m. Eastern Time (ET) Monday through Thursday or 
from 8:00 a.m. to 11:30 a.m. ET on Fridays in the FCC Reference 
Information Center, 445 12th Street SW, Room CY-A257, Washington, DC 
20554. The Auction 100 Procedures Public Notice and related documents 
also are available on the internet at the Commission's website: 
www.fcc.gov/auction/100, or by using the search function for AU Docket 
No. 17-329 on the Commission's Electronic Comment Filing System (ECFS) 
web page at https://www.fcc.gov/ecfs/.

I. Background

    1. Each applicant listed in Attachment A of the Auction 100 
Procedures Public Notice previously filed a short-form application (FCC 
Form 175) during the initial filing window January 25-31, 2018, as an 
AM broadcaster seeking new cross-service FM translator construction 
permits. These applicants were previously given opportunities to 
eliminate their mutual exclusivity with other applicants' engineering 
proposals by settlement or technical modification to their proposals.
    2. Construction Permits and Entities Eligible to Participate in 
Auction 100. Auction 100 will resolve by competitive bidding the 
remaining groups of mutually exclusive (MX) engineering proposals for 
FM translator construction permits. A list of the locations and 
channels of these proposed stations is included as Attachment A of the 
Auction 100 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 
100.
    3. Auction 100 is a closed auction; only those individual or 
entities listed in Attachment A of the Auction 100 Procedures Public 
Notice are eligible to complete the remaining steps to become qualified 
to bid in this auction. An applicant listed in Attachment A may become 
qualified to bid only if it conforms with the additional filing, 
qualification, and payment requirements, and otherwise complies with 
applicable rules, policies and procedures. Each listed applicant may 
become a qualified bidder only for those construction permits specified 
for that applicant in Attachment A of the Auction 100 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 auction applications are 
accepted, and thus mutual exclusivity exists for auction purposes, an 
applicant cannot obtain a construction permit without placing a bid, 
even if no other applicant for that particular construction permit 
becomes qualified to bid or in fact places a bid.
    4. Relevant Authority. Auction 100 applicants must familiarize 
themselves thoroughly with the Commission's general competitive bidding 
rules, including Commission decisions in proceedings regarding 
competitive bidding procedures (47 CFR part 1, subpart Q), application 
requirements, and obligations of Commission licensees. Broadcasters 
should also familiarize themselves with the Commission's FM translator 
service and competitive bidding requirements contained in 47 CFR parts 
73 and 74, as well as Commission orders concerning competitive bidding 
for broadcast construction permits. Applicants must also be thoroughly 
familiar with the procedures, terms and conditions contained in the 
Auction 100 Procedures Public Notice and any future public notices that 
may be released in this proceeding.
    5. 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 our 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 100.
    6. Prohibited Communications. Starting at the deadline for filing a 
Form 175 on January 31, 2018, the rules prohibiting certain 
communications set forth in 47 CFR 1.2105(c) and 73.5002(d), (e) apply 
to each applicant that filed a Form 175 in Auction 100. Subject to 
specified exceptions, 47 CFR 1.2105(c)(1) provides that 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 applicant's bids 
or bidding strategies (including post-auction market structure), or 
discussing or negotiating settlement agreements, until after the down 
payment deadline.
    7. Thus, public disclosure of information relating to bids, bidding 
strategies, or to post-auction market structures may violate 47 CFR 
1.2105(c). In accordance with 47 CFR 73.5002(e), the Wireless 
Telecommunications and Media Bureaus suspended for Auction 100 
application of the prohibitions of 47 CFR 1.2105(c) and 73.5002(d) 
during specified periods for the limited purpose of allowing settlement 
discussions. Discussion of information covered by these rules outside 
of the settlement period would violate the rules.
    8. Entities Subject to Section 1.2105. An applicant for purposes of 
this rule includes all officers and directors of the entity submitting 
the Form 175, all controlling interests in that entity, as

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well as all holders of interests amounting to 10% or more 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 100 applicant that 
does not correct deficiencies in its application, fails to submit a 
timely and sufficient upfront payment, or does not otherwise become 
qualified to bid, 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.
    9. Scope of Prohibition on Communications; Prohibition on Joint 
Bidding Agreements. The Commission in 2015 amended 47 CFR 1.2105(c) to 
extend the prohibition on communications to cover all applicants for an 
auction regardless of whether the applicants seek permits or licenses 
in the same geographic area or market. The Commission also now 
prohibits a joint bidding arrangement, including arrangements relating 
to the permits or licenses being auctioned that address or communicate, 
directly or indirectly, bids, bidding, or bidding strategies, including 
arrangements regarding price or the specific 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 a 
communication within the scope of any arrangement consistent with the 
exclusion from the Commission's 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 agreements, arrangements, or understandings that are 
solely operational or that provide for a transfer or assignment of 
license, provided that such agreements, arrangements or understandings 
do not involve the communication or coordination of bids (including 
amounts), bidding strategies, or the particular permits or licenses on 
which to bid and provided that such agreements, arrangements or 
understandings are disclosed on its application.
    10. In recognition of the specific eligibility restrictions and 
filing procedures established by the Commission for the Auction 100 
filing window, however, in the Auction 100 Filing Instructions Public 
Notice, the Bureaus waived for Auction 100 the provisions of section 
1.2105(a)(3) to allow entities controlled by the same individual or set 
of individuals to file separate Forms 175. Some Auction 100 applicants 
under common control filed separate Forms 175 relying on the waiver of 
section 1.2105(a)(3).
    11. In this public notice, Auction 100 applicants were reminded 
that the Commission presumes, due to the definition of an auction 
applicant contained in 47 CFR 1.2105(c), that bidding strategies are 
communicated between entities that share a common officer or director. 
Moreover, current rules bar most kinds of joint bidding agreements, 
including agreements for certain communication between commonly 
controlled entities or other auction applicants. Further, when there is 
a disclosable interest holder or holders for more than one Form 175 in 
the same auction, section 1.2105(a)(2)(x) requires that each such Form 
175 include a certification that internal controls have been 
implemented that preclude any individual acting on behalf of an Auction 
100 applicant from possessing information about the bids or bidding 
strategies, including post-auction market structure, of more than one 
Auction 100 applicant or communicating such information to anyone 
possessing such information regarding another Auction 100 applicant.
    12. Section 1.2105(c) Certification. By electronically submitting 
its Form 175, each applicant in Auction 100 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.
    13. Reporting Requirements. According to 47 CFR 1.2105(c)(4), 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 under 
47 CFR 1.2105(c)(4) 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.
    14. Procedures for Reporting Prohibited Communications. Any report 
required by 47 CFR 1.2105(c) must be filed consistent with the 
instructions set forth in the Auction 100 Procedures Public Notice. For 
Auction 100, a party must file only a single report concerning a 
prohibited communication and the report must be filed with the Chief of 
the Auctions Division, Office of Economics and Analytics (OEA), 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]. Any such report submitted in hard copy must be 
delivered only to: Margaret W. Wiener, Chief, Auctions Division, OEA, 
FCC, 445 12th Street SW, Washington, DC 20554.
    15. 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 ECFS. 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 Division 
staff about the procedures for submitting such reports.
    16. Winning Bidders Must Disclose Terms of Agreements. 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.
    17. Compliance with Antitrust Laws. Conduct that is permissible 
under the Commission's rules may be prohibited by antitrust laws. 
Regardless of compliance with the Commission's rules, applicants remain 
subject to the antitrust laws. Compliance with the disclosure 
requirements of 47 CFR 1.2105(c) will not insulate a party from 
enforcement of the antitrust laws. To the extent the Commission becomes 
aware of specific allegations that suggest that violations of the 
federal antitrust laws may have occurred, the Commission

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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, it may be subject to forfeiture of its 
upfront payment, down payment, or full bid amount and may be prohibited 
from participating in future auctions, among other sanctions.
    18. Due Diligence. Each potential bidder is solely responsible for 
investigating and evaluating all technical and marketplace factors that 
may have a bearing on the value of the cross-service FM translator 
construction permits that it is seeking in Auction 100. 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.
    19. An applicant should perform its due diligence research and 
analysis before proceeding, as it would with any new business venture. 
In particular, each potential bidder is strongly encouraged to perform 
technical analyses and/or refresh its previous analyses to assure 
itself that, should it become a winning bidder for any Auction 100 
construction permit, it will be able to build and operate facilities 
that will fully comply with all applicable technical and legal 
requirements. Each applicant is strongly encouraged to inspect any 
prospective transmitter sites located in, or near, the service area for 
which it plans to bid, confirm the availability of such sites, and to 
familiarize itself with the Commission's rules regarding the National 
Environmental Policy Act, 47 CFR part 1, subpart I.
    20. Each applicant is strongly encouraged to continue to conduct 
its own research throughout Auction 100 in order to determine the 
existence of pending or future administrative or judicial proceedings 
that might affect its decision on continued participation in Auction 
100. Each Auction 100 applicant is responsible for assessing the 
likelihood of the various possible outcomes and for considering the 
potential impact on construction permits available in Auction 100. 
These due diligence considerations do not comprise an exhaustive list 
of steps that should be undertaken prior to participating in Auction 
100. 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.
    21. 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 100. Each 
potential bidder is responsible for undertaking research to ensure that 
any permits won in Auction 100 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.
    22. 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. 
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. 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.
    23. Use of Auction Systems. The Commission makes no warranty 
whatsoever with respect to the FCC auction application system and the 
auction bidding system. In no event shall the Commission, or any of its 
officers, employees, or agents, be liable for any damages whatsoever 
(including, but not limited to, loss of business profits, business 
interruption, loss of business information, or any other loss) arising 
out of or relating to the existence, furnishing, functioning, or use of 
the FCC auction systems that are accessible to qualified bidders in 
connection with Auction 100. 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.

II. Short-Form Application Requirements

    24. Maintaining Current Information in Forms 175. Each Auction 100 
applicant has a duty pursuant to 47 CFR 1.65 and 1.2105(b) to 
continuously 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 5 days of a significant occurrence, or to amend a 
Form 175 no more than 5 days after the applicant becomes aware of the 
need for the amendment.
    25. Minor Modifications to Forms 175. After the initial application 
filing deadline on January 31, 2018, an Auction 100 applicant is 
permitted to make only minor changes to its application consistent with 
the Commission's rules. Permissible minor changes include, among other 
things, deletion and addition of authorized bidders (to a maximum of 
three) and revision of addresses and telephone numbers of the 
applicant, its responsible party, or its contact person. Pursuant to 47 
CFR 1.2105(b), minor amendments include any changes that are not major, 
such as correcting typographical errors or supplying and correcting 
information as requested to support certifications made in the 
application.
    26. In this context, major amendments to a Form 175 include a 
change of technical proposal, change in control of the applicant (e.g., 
certain changes in ownership or control that would constitute an 
assignment or transfer of control of the applicant), change in claimed 
bidding credit eligibility to a higher percentage of bidding credit, 
change in required certifications, change in the applicant's legal 
classification that results in a change of control, or change in the 
identification of the application's proposed facilities as 
noncommercial educational after the initial application filing 
deadline. If revised or updated information constitutes a major 
amendment as defined by section 1.2105, such changes will not be 
accepted and may result in dismissal of the application. Even if an 
applicant's Form 175 is dismissed, the applicant would remain subject 
to the prohibitions on certain communications of 47 CFR 1.2105(c) until 
the down payment deadline for Auction 100.
    27. Submission of Updates to Forms 175. Updates to Forms 175 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.
    28. An applicant should not use the auction application system 
outside of the initial and resubmission filing windows to make changes 
to its Form 175 for other than administrative

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changes (e.g., changing contact information). After the filing window 
has closed, the system will not permit applicants to modify information 
in most of the application's data fields.
    29. If changes need to be made outside of the initial and 
resubmission filing windows for other than the minor administrative 
changes as described, the applicant must submit a letter briefly 
summarizing the changes and subsequently update its Form 175 in the 
auction application system once it is available. Any letter describing 
changes to an applicant's Form 175 must be addressed to Margaret W. 
Wiener, Chief, Auctions Division, OEA, and submitted by email to 
[email protected]. The email summarizing the changes must include a 
subject or caption referring to Auction 100 and the name of the 
applicant, for example, ``Re: Changes to Auction 100 Short-Form 
Application of ABC Corp.'' Parties should format any attachments to 
email as Adobe[supreg] Acrobat[supreg] (pdf) or Microsoft[supreg] Word 
documents. Questions about Form 175 amendments should be directed to 
the Auctions Division at (202) 418-0660.
    30. Applicants must not submit application-specific material 
through the Commission's ECFS.
    31. Submission of a Form 175 (and any amendments thereto) 
constitutes a representation by the person certifying the application 
that he or she is an authorized representative of the applicant with 
authority to bind the applicant, that he or she has read the form's 
instructions and certifications, and that the contents of the 
application, its certifications, and any attachments are true and 
correct. Submission of 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.
    32. Provisions Regarding Former and Current Defaulters. Current 
defaulters or delinquents are not eligible to participate in Auction 
100, but former defaulters or delinquents can participate so long as 
they are otherwise qualified and make upfront payments that are 50% 
more than would otherwise be necessary. An applicant is considered a 
current defaulter or a current delinquent when it, any of its 
affiliates (as defined in 47 CFR 1.2110), any of its controlling 
interests (as defined in 47 CFR 1.2105(a)(4)(i)), 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 Forms 175 in that auction.
    33. Thus, an auction applicant must certify under penalty of 
perjury on its Form 175 that it, its affiliates, its controlling 
interests, and the affiliates of its controlling interests, were not in 
default on any payment for a Commission construction permit or license 
(including down payments) and not delinquent on any non-tax debt owed 
to any Federal agency. Accordingly, if an applicant had an outstanding 
non-tax debt to the Commission or any other Federal agency, including 
any debt that resulted in a listing of the applicant on the 
Commission's Red Light Display System, the applicant would have been 
unable to make the required certification that it is not currently in 
default; if so, such applicant will not be eligible to participate in 
the bidding for Auction 100.
    34. An applicant is considered a former defaulter or a former 
delinquent when the applicant or any of its controlling interests has 
defaulted on any Commission construction permit or license or has been 
delinquent on any non-tax debt owed to any Federal agency, but has 
since remedied all such defaults and cured all of the outstanding non-
tax delinquencies prior to the Form 175 filing deadline in Auction 100. 
Each Auction 100 applicant must certify under penalty of perjury 
whether it, along with any of its controlling interests (as defined in 
47 CFR 1.2105(a)(4)(i)), 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. If an applicant or any controlling interest is a former 
defaulter or former delinquent, the applicant may participate further 
in Auction 100 so long as it is otherwise qualified and that applicant 
makes an upfront payment that is 50% more than would otherwise be 
required.
    35. 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 CFR 
1.2105(a)(2)(xii), the applicant may exclude from consideration any 
cured default on a Commission construction permit or license or any 
cured 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 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.
    36. Applicants are encouraged to review previous guidance on 
default and delinquency disclosure requirements in the context of the 
auction Form 175 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 payment deadline. Parties are 
encouraged to consult with the Auctions Division staff if they have any 
questions about default and delinquency disclosure requirements.
    37. The FCC considers outstanding debts owed to the U.S. 
Government, in any amount, to be a serious matter. The FCC adopted 
rules that implement its obligations under the Debt Collection 
Improvement Act of 1996, including a provision referred to as the red 
light rule. The FCC's competitive bidding rules with regard to current 
and former defaults or delinquencies, including the provisions and 
certifications of 47 CFR 1.2105 and 1.2106, are not affected by the red 
light rule.
    38. The FCC's Red Light Display System, which provides information 
regarding debts currently owed to the FCC, 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 whether it will have an increased upfront 
payment obligation).
    39. Moreover, applicants in Auction 100 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. 
Each applicant is

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strongly encouraged to carefully review all records and other available 
federal agency databases and information sources to determine whether 
the applicant, or any of its affiliates, or any of its controlling 
interests, or any of the affiliates of its controlling interests, 
currently owes or was ever delinquent in the payment of non-tax debt 
owed to any federal agency. An 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).

III. Preparing for Bidding

    40. Tutorial. A bidding procedures tutorial is available in the 
Education section of the Auction 100 website and will remain accessible 
for reference.
    41. Correction of Application Deficiencies. An applicant whose 
application is found to contain deficiencies will be provided with a 
limited opportunity to bring its application into compliance with the 
Commission's competitive rules during a resubmission window, the dates 
for which will be announced in a future public notice. Commission staff 
will communicate only with an applicant's contact person or certifying 
official, as designated on the Form 175, 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].
    42. Deadline for Upfront Payments. In order to become eligible to 
bid in Auction 100, a sufficient upfront payment must be submitted by 
wire transfer to the FCC's account for Auction 100 at the U.S. Treasury 
before 6:00 p.m. ET on May 23, 2019, following the instructions in 
Attachment B to the Auction 100 Procedures Public Notice, together with 
submission to the FCC of a complete and accurate FCC Remittance Advice 
Form (FCC Form 159). After completing its short-form application, an 
applicant will have access to an electronic version of the Form 159. 
This Form 159 can be printed, and the completed form must be sent by 
fax to the FCC at (202) 418-2843, or by email to [email protected].
    43. Upfront Payments and Bidding Eligibility. Applicants must make 
upfront payments sufficient to obtain bidding eligibility on the 
construction permit(s) on which they will bid. The amount of the 
applicant's upfront payment will determine a bidder's initial bidding 
eligibility, the maximum number of bidding units on which a bidder may 
place bids in any single round. In order to bid on a particular 
construction permit, otherwise qualified bidders that are designated in 
Attachment A of the Auction 100 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 100 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 100 
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. The total upfront payment does not affect the total dollar 
amount the bidder may bid on any given construction permit.
    44. In Auction 100, the upfront payment amount determines a 
bidder's initial bidding eligibility, The specific upfront payment 
amount and bidding units for each construction permit are set forth in 
Attachment A of the Auction 100 Procedures Public Notice. 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.
    45. Applicants that are former defaulters must pay upfront payments 
50% 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). As required by 47 CFR 1.2106(a), if an applicant is a 
former defaulter, it must calculate its upfront payment for all of its 
construction permits by multiplying the number of bidding units on 
which it wishes to be active by 1.5. In order to calculate the number 
of bidding units to assign to former defaulters, the Commission will 
divide the upfront payment received by 1.5 and round the result up to 
the nearest bidding unit. If a former defaulter fails to submit a 
sufficient upfront payment to establish eligibility to bid on at least 
one of the construction permits designated for that applicant in 
Attachment A of the Auction 100 Procedures Public Notice, the applicant 
will not be eligible to participate further in the auction. This 
applicant will retain its status as an applicant in Auction 100 and 
will remain subject to 47 CFR 1.2105(c) and 73.5002(d).
    46. Qualified Bidder Classification. Only qualified bidders are 
permitted to bid. A qualified bidder is an applicant identified in 
Attachment A of the Auction 100 Procedures Public Notice, with a 
submitted Form 175 that is found to be timely filed, accurate, and 
substantially complete (i.e. substantially complies with the 
Commission's competitive bidding rules and other applicable Commission 
rules, as well as the procedures and deadlines set forth in the Auction 
100 Procedures Public Notice, provided that such applicant has timely 
submitted an upfront payment following the procedures and instructions 
set forth in Attachment B to the Auction 100 Procedures Public Notice 
and that is sufficient for at least one of the construction permits for 
which it is designated as an applicant in Attachment A.
    47. Auction Registration. All qualified bidders are automatically 
registered for the auction. Registration materials will be distributed 
prior to the auction by overnight mail. For security purposes, the 
mailing will be sent only to the contact person at the contact address 
listed in the Form 175 and will include the SecurID[supreg] tokens that 
will be required to place bids, an FCC assigned username (User ID) for 
each authorized bidder, the bidding system web address and instructions 
for accessing and logging in to the auction bidding system, and the 
telephonic bidding telephone number.
    48. 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 June 19, 2019, the contact listed on that 
applicant's Form 175 must call the Auctions Hotline at (717) 338-2868. 
Receipt of the registration mailing is critical to participating in the 
auction, and each applicant is responsible for

[[Page 28756]]

ensuring it has received all of the registration materials.
    49. In the event that SecurID[supreg] tokens are lost or damaged, 
only a person who has been designated as an authorized bidder, contact, 
or certifying official on the applicant's Form 175 may request 
replacements. To request replacement of these items, call the Auction 
Bidder Line at the telephone number provided in the registration 
materials or the Auction Hotline at (717) 338-2868.
    50. 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. Each SecurID[supreg] token is tailored to a specific auction.
    51. Mock Auction. All qualified bidders will be eligible to 
participate in a mock auction on Friday, June 21, 2019. The mock 
auction will enable bidders to become familiar with the FCC auction 
bidding system and to practice submitting bids prior to the auction. 
All qualified bidders, including all authorized bidders, are strongly 
encouraged to participate in the mock auction.

IV. Auction Structure

    52. Simultaneous Multiple Round Auction. The Commission's standard 
simultaneous multiple-round auction format will be used for Auction 
100. 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. 
Unless otherwise announced, bids will be accepted on all construction 
permits in each round of the auction until bidding stops on every 
construction permit.
    53. Eligibility and Activity Rules. For Auction 100, the amount of 
the upfront payment submitted by a bidder determines initial bidding 
eligibility, the maximum number of bidding units on which a bidder may 
be active. Each construction permit is assigned a specific number of 
bidding units as listed in Attachment A of the Auction 100 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 100 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 construction permits for which it is 
designated an applicant in Attachment A in the Auction 100 Procedures 
Public Notice. The total upfront payment does not affect the total 
dollar amount a bidder may bid on any given construction permit.
    54. 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.
    55. 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.
    56. In Auction 100, a bidder is required to be active on 100% 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.
    57. Activity Rule Waivers. In Auction 100, each bidder is provided 
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.
    58. 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.
    59. 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 
Auction 100 activity rule. Reducing eligibility is an irreversible 
action; once eligibility has been reduced, a bidder cannot regain its 
lost bidding eligibility.
    60. 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 a proactive waiver will not keep the auction open.
    61. Auction Stopping Rule. For Auction 100, a simultaneous stopping 
rule approach will be employed, 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.
    62. Alternative versions of the simultaneous stopping procedure 
also may be employed for Auction 100. (1) The auction would close for 
all

[[Page 28757]]

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 rule. (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 rule. (3) 
The auction would close using a modified version of the simultaneous 
stopping rule that combines options (1) and (2). (4) The auction would 
close after announcement of a specified number of additional rounds 
(special stopping rule). If this special stopping rule is invoked, bids 
in the specified final round(s) will be accepted, 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.
    63. These options will be exercised 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, it is 
likely that there will be an attempt to change the pace of the auction, 
such as, changing the number of bidding rounds per day and/or the 
minimum acceptable bids. The Media Bureau (MB) and OEA retain the 
discretion to exercise any of these options with or without prior 
announcement during the auction.
    64. Auction Delay, Suspension or Cancellation. By public notice 
and/or by announcement through the FCC auction bidding system, bidding 
in Auction 100 may be delayed, suspended, or cancelled 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, MB and OEA, 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 delay or 
suspension of the auction. MB and OEA 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.

V. Bidding Procedures

    65. Round Structure. 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. Moreover, unless 
otherwise announced, bidding on all construction permits will be 
conducted on each business day until bidding has stopped on all 
construction permits. MB and OEA retain the discretion to change the 
bidding schedule, and 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.
    66. Reserve Price and Minimum Opening Bids. Normally, a reserve 
price is an absolute minimum price below which a construction permit or 
license will not be sold in a specific auction. There are no reserve 
prices for construction permits in Auction 100.
    67. A minimum opening bid is the minimum bid price set at the 
beginning of the auction below which no bids are accepted. The specific 
minimum opening amount adopted for each construction permit is listed 
in Attachment A to the Auction 100 Procedures Public Notice.
    68. Bid Amounts. If the qualified bidder has sufficient eligibility 
to place a bid on a particular construction permit, a bidder will be 
able to place a bid on a given construction permit in any of up to 9 
different amounts. The FCC auction bidding system interface will list 
the 9 acceptable bid amounts for each construction permit. For 
calculation of the 9 acceptable bid amounts for each construction 
permit, Auction 100 will begin with a minimum acceptable bid increment 
percentage of 10% and an additional bid increment percentage of 5%.
    69. In Auction 100, 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 
using the Commission's standard rounding procedures for auctions as 
described in the Auction 100 Procedures Public Notice.
    70. In Auction 100, the FCC auction bidding system will calculate 
the 8 additional bid amounts by multiplying the minimum acceptable bid 
amount by the additional bid increment percentage of 5%, 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%, 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.
    71. MB and OEA retain the discretion to change bid amounts, 
including the minimum acceptable bid amounts, the minimum acceptable 
bid percentage, the additional bid increment percentage, and the number 
of acceptable bid amounts if MB and OEA determine that circumstances so 
dictate. Further, MB and OEA retain the discretion to do so on a 
construction permit-by-construction permit basis. MB and OEA also 
retain the discretion to limit (a) the amount by which a minimum 
acceptable bid for a construction permit may increase compared with the 
corresponding provisionally winning bid, and (b) the amount by which an 
additional bid amount may increase compared with the immediately 
preceding acceptable bid amount. For example, MB and OEA could set a 
$1,000 limit on increases in minimum

[[Page 28758]]

acceptable bid amounts over provisionally winning bids. Thus, if 
calculating a minimum acceptable bid using the minimum acceptable bid 
percentage results in a minimum acceptable bid amount that is $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. If MB and OEA exercise this discretion 
to change bid amounts, they will alert bidders by announcement in the 
FCC auction bidding system during the auction.
    72. Provisionally Winning Bids. 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. 
Provisionally winning bids count toward activity for purposes of the 
activity rule.
    73. The FCC auction bidding system, using a pseudo-random number 
generator, will assign a pseudo-random number to each bid upon 
submission. In the event of identical high bid amounts being submitted 
on a construction permit in a given round (i.e., tied bids), the tied 
bid with the highest 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.
    74. Remote Electronic Bidding. The Commission will conduct Auction 
100 remotely over the internet using the FCC auction bidding system, 
and telephonic bidding will be available as well. There will be no on-
site bidding during Auction 100. Telephonic bid assistants are required 
to use a script when entering bids placed by telephone. Telephonic 
bidders are 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 10 minutes. 
All telephone calls are recorded.
    75. An Auction 100 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 100 
Procedures Public Notice and (2) the bidder's eligibility in that a 
bidder must have sufficient eligibility to place a bid on a particular 
construction permit. The bid submission screens will allow bidders to 
submit bids on only those construction permits designated for that 
applicant in Attachment A.
    76. 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.
    77. In each round, if a qualified bidder has sufficient eligibility 
for a particular construction permit, that bidder will be able to place 
bids on a given construction permit in any of up to 9 pre-defined bid 
amounts. 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.
    78. 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 100 Procedures Public Notice.
    79. 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.
    80. Bid Removal and Bid Withdrawal. 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.
    81. In Auction 100, bidders are prohibited from withdrawing any bid 
after close of the round in which that bid was placed. Bidders are 
cautioned to select bid amounts carefully because no bid withdrawals 
will be allowed, even if a bid was mistakenly or erroneously made.
    82. Round Results. Reports reflecting bidders' identities for 
Auction 100 will be available before and during the auction. Thus, 
bidders will know in advance of Auction 100 the identities of the 
bidders against which they are bidding.
    83. Bids placed during a round will not be made public until the 
conclusion of that round. After a round closes, reports will be 
compiled 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). These reports will be posted 
for public access.
    84. Auction Announcements. 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.

VI. Post-Auction Procedures

    85. Shortly after bidding has ended, the Commission will issue a 
public notice declaring the auction closed, identifying the winning 
bidders, and establishing the deadlines for submitting down payments, 
final payments, and long-form applications.
    86. Down Payments. As required by 47 CFR 1.2107(b), within 10 
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 100 to 20% of the net amount of its winning bids 
(gross bids less any applicable new entrant bidding credit).
    87. Final Payments. As required by 1.2109(a), 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

[[Page 28759]]

applicable deadline for submitting down payments.
    88. Long-Form Applications. Section 73.5005(a) provides that within 
30 days following the close of bidding and notification to 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 100.
    89. As required by 47 CFR 1.1104, a winning bidder in a commercial 
broadcast spectrum auction must submit an application filing fee with 
its post-auction long-form application. When an application filing fee 
is due by Auction 100 winning bidders, the amount may be higher or 
lower than the $835 currently specified at 47 CFR 1.1104. See also 47 
CFR 1.2107(c).
    90. Further instructions on these and other filing requirements 
will be provided to winning bidders in the auction closing public 
notice. An Auction 100 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 1.2107(c).
    91. Default and Disqualification. 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 100 bidder's winning bid and the amount of the winning bid the 
next time a construction permit covering the same spectrum is won in an 
auction, plus an additional payment equal to a percentage of the 
defaulter's bid or of the subsequent winning bid, whichever is less. 
The percentage of the applicable bid to be assessed as an additional 
payment for a default in Auction 100 is 20% of the applicable bid.
    92. 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.
    93. Refund of Remaining Upfront Balance. All refunds of upfront 
payment balances will be returned to the payer of record as identified 
on the Form 159 unless the payer submits written authorization 
instructing otherwise. This written authorization must comply with the 
refund instructions in the Auction 100 Procedures Public Notice.

VII. Procedural Matters

    94. Paperwork Reduction Act. This document does not contain new or 
modified information collection requirements subject to the Paperwork 
Reduction Act of 1995 (PRA), Public Law 104-13, nor does it contain any 
new or modified information burden for small business concerns with 
fewer than 25 employees pursuant to the Small Business Paperwork Relief 
Act of 2002, Public Law 107-198. See 44 U.S.C. 3506(c)(4).
    95. Congressional Review Act. The Commission will send a copy of 
this Auction 100 Procedures Public Notice to Congress and the 
Government Accountability Office pursuant to the Congressional Review 
Act. See 5 U.S.C. 801(a)(1)(A).
    96. Supplemental Final Regulatory Flexibility Act Analysis. As 
required by the Regulatory Flexibility Act of 1980, as amended (RFA), 5 
U.S.C. 601-612, the FCC prepared Initial Regulatory Flexibility 
Analyses (IRFAs) in connection with the Broadcast Competitive Bidding 
Notice of Proposed Rulemaking (NPRM) and other FCC NPRMs (collectively 
Competitive Bidding NPRMs) pursuant to which Auction 100 will be 
conducted. Final Regulatory Flexibility Analyses (FRFAs) likewise were 
prepared in the Broadcast Competitive Bidding Order and other FCC 
orders (collectively Broadcast Competitive Bidding Orders) pursuant to 
which Auction 100 will be conducted. In this proceeding, a Supplemental 
Initial Regulatory Flexibility Analysis (Supplemental IRFA) was 
incorporated in the Auction 100 Comment Public Notice, 83 FR 56031, Nov 
9, 2018. The FCC sought written public comment on the proposals in the 
Auction 100 Comment Public Notice, including comments on the 
Supplemental IRFA. This Supplemental FRFA supplements the FRFAs in the 
Broadcast Competitive Bidding Orders to reflect the actions taken in 
the Auction 100 Procedures Public Notice and conforms to the RFA.
    97. Need for, and Objectives of, the Public Notice. The procedures 
for the conduct of Auction 100 as described in the Auction 100 
Procedures Public Notice implement the Commission's competitive bidding 
rules which have been adopted by the FCC in multiple notice-and-comment 
rulemaking proceedings. More specifically, the Auction 100 Procedures 
Public Notice provides an overview of the procedures, terms and 
conditions governing Auction 100 and the post-auction application and 
payment processes, as well as setting the minimum opening bid amount 
for each of the cross-service FM translator construction permits that 
are subject to being assigned by competitive bidding.
    98. To promote the efficient and fair administration of the 
competitive bidding process for all Auction 100 participants, including 
small businesses, the Office of Economics and Analytics (OEA), in 
conjunction with the Media Bureau (MB), in the Auction 100 Procedures 
Public Notice announce the following procedures: (1) Use of a 
simultaneous multiple-round auction format, consisting of sequential 
bidding rounds with a simultaneous stopping procedure (with discretion 
by MB and OEA to exercise alternative stopping rules under certain 
circumstances); (2) a specific minimum opening bid amount for each 
construction permit available in Auction 100; (3) a specific number of 
bidding units for each construction permit; (4) establishment of a 
bidder's initial bidding eligibility in bidding units based on that 
bidder's upfront payment through assignment of a specific number of 
bidding units for each construction permit; (5) so that bidders must 
bid actively during the auction rather than waiting until late in the 
auction before participating, Auction 100 is a single stage auction in 
which a bidder is required to be active on 100% of its bidding 
eligibility in each round of the auction; (6) provision of three 
activity waivers for each qualified bidder to allow it to preserve 
bidding eligibility during the course of the auction; (7) use of 
minimum acceptable bid amounts and additional acceptable increments, 
along with a proposed methodology for calculating such amounts, with MB 
and OEA retaining discretion to change their methodology if 
circumstances dictate; (8) a procedure for breaking ties if identical 
high bid amounts are submitted on one permit in a given round; (9) a 
prohibition on bid withdrawals in Auction 100; and (10) establishment 
of an additional default payment of 20% under 47 CFR

[[Page 28760]]

1.2104(g)(2) in the event that a winning bidder defaults or is 
disqualified after the auction.
    99. Summary of Significant Issues Raised by Public Comments in 
Response to the IRFA. There were no comments filed that specifically 
addressed the procedures and policies proposed in the Supplemental 
IFRA. In fact, no comments were filed in this proceeding after release 
of the Auction 100 Comment Public Notice.
    100. Response to Comments by the Chief Counsel for Advocacy of the 
Small Business Administration. Pursuant to the Small Business Jobs Act 
of 2010, which amended the RFA, the FCC is required to respond to any 
comment filed by the Chief Counsel for Advocacy of the Small Business 
Administration (SBA), and to provide a detailed statement of any change 
made to the proposed procedures as a result of those comments, 5 U.S.C. 
604(a)(3). The Chief Counsel did not file any comments in response to 
the procedures that were proposed in the Auction 100 Comment Public 
Notice. The FCC will send a copy of this Auction 100 Procedures Public 
Notice, including this Supplemental FRFA, to the Chief Counsel for 
Advocacy of the SBA pursuant to 5 U.S.C. 604(b).
    101. Description and Estimate of the Number of Small Entities to 
Which the Proposed Procedures Will Apply. The RFA directs agencies to 
provide a description of and, where feasible, an estimate of the number 
of small entities that may be affected by the rules adopted herein. The 
RFA generally defines the term small entity as having the same meaning 
as the terms small business, small organization, and small governmental 
jurisdiction. In addition, the term small business has the same meaning 
as the term small business concern under the Small Business Act. A 
small business concern is one which: (1) Is independently owned and 
operated; (2) is not dominant in its field of operation; and (3) 
satisfies any additional criteria established by the SBA, 15 U.S.C. 
632.
    102. Auction 100 is a closed auction; therefore, the specific 
competitive bidding procedures and minimum opening bid amounts 
described in the Auction 100 Procedures Public Notice will affect at a 
maximum only the 23 individuals or entities listed in Attachment A of 
the Auction 100 Procedures Public Notice and who are the only parties 
eligible to complete the remaining steps to become qualified to bid in 
Auction 100. These specific 23 individuals or entities listed in 
Attachment A include firms of all sizes.
    103. Radio Stations. This Economic Census category comprises 
establishments primarily engaged in broadcasting aural programs by 
radio to the public. Programming may originate in their own studio, 
from an affiliated network, or from external sources. The SBA has 
established a small business size standard for this category as firms 
having $38.5 million or less in annual receipts. Economic Census data 
for 2012 shows that 2,849 radio station firms operated during that 
year. Of that number, 2,806 firms operated with annual receipts of less 
than $25 million per year, 17 with annual receipts between $25 million 
and $49,999,999 and 26 with annual receipts of $50 million or more. 
Therefore, based on the SBA's size standard the majority of such 
entities are small entities.
    104. According to Commission staff review of the BIA/Kelsey, LLC's 
Media Access Pro Radio Database as of September 6, 2018, about 11,024 
(or about 99.92%) of 11,033 commercial radio stations had revenues of 
$38.5 million or less and thus qualify as small entities under the SBA 
definition. The SBA size standard data does not enable MB and OEA to 
make a meaningful estimate of the number of small entities who may 
participate in Auction 100. There are a maximum of 23 individuals or 
entities that may become qualified bidders in Auction 100, in which 
applicant eligibility is closed. The specific procedures and minimum 
opening bid amounts announced in the Auction 100 Procedures Public 
Notice will affect directly all applicants participating in Auction 
100.
    105. MB and OEA are unable to accurately develop an estimate of how 
many of these 23 individuals or entities are small businesses based on 
the number of small entities that applied to participate in prior 
broadcast auctions, because that information is not collected from 
applicants for broadcast auctions in which bidding credits are not 
based on an applicant's size (as is the case in auctions for wireless 
service licenses). Due to the eligibility criteria established by the 
FCC, potential bidders in Auction 100 may include only existing holders 
of broadcast station construction permits or licenses. In 2013, the FCC 
estimated that 97% of radio broadcasters met the SBA's prior definition 
of small business concern, based on annual revenues of $7 million. The 
SBA has since increased that revenue threshold to $38.5 million, which 
suggests that an even greater percentage of radio broadcasters would 
fall within the SBA's definition. Based on FCC staff review of the BIA/
Kelsey, LLC's Media Access Pro Radio Database, 4,626 (99.94%) of 4,629 
a.m. radio stations have revenue of $38.5 million or less. Accordingly, 
based on this data, MB and OEA conclude that the majority of Auction 
100 bidders will likely meet the SBA's definition of a small business 
concern.
    106. In assessing whether a business entity qualifies as small 
under the SBA definition, business control affiliations must be 
included. This estimate therefore likely overstates the number of small 
entities that might be affected by Auction 100 because the revenue 
figure on which it is based does not include or aggregate revenues from 
affiliated companies. Moreover, the definition of small business also 
requires that an entity not be dominant in its field of operation and 
that the entity be independently owned and operated. The estimate of 
small businesses to which Auction 100 competitive bidding requirements 
may apply does not exclude any radio station from the definition of a 
small business on these bases and is therefore over-inclusive to that 
extent. Furthermore, it is not possible at this time to define or 
quantify the criteria that would establish whether a specific radio 
station is dominant in its field of operation. In addition, given the 
difficulty in assessing these criteria in the context of media 
entities, these estimates of small businesses to which they apply may 
be over-inclusive.
    107. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements for Small Entities. As articulated in a 1994 
rulemaking order, the FCC designed the auction application process 
itself to minimize reporting and compliance requirements for 
applicants, including small business applicants. For all spectrum 
auctions, in the first part of the Commission's two-phased auction 
application process, parties desiring to participate in an auction file 
streamlined short-form applications in which they certify under penalty 
of perjury as to their qualifications. Eligibility to participate in 
bidding is based on an applicant's short-form application and 
certifications, as well as its upfront payment.
    108. To become qualified to bid in Auction 100, applicants, 
including small entities, must submit a Form 175 that is timely and is 
found to be substantially complete and submit an upfront payment that 
is timely and sufficient for at least one of the construction permits 
for which it is designated as an applicant on the Public Notice's 
Attachment A. The submission of the upfront payment must comply with 
the instructions provided in the

[[Page 28761]]

public notice. As established by the Commission in a 1994 rulemaking 
order and in accordance with the terms of 47 CFR 1.2105(b)(2), an 
applicant whose application is found to contain deficiencies will have 
a limited opportunity to bring its application into compliance with the 
Commission's competitive bidding rules during a resubmission window. As 
required by 47 CFR 1.65 and 1.2105(b), each Auction 100 applicant must 
maintain the accuracy of its previously filed Form 175. As required by 
47 CFR 1.1111, each upfront payment must be accompanied by a Form 159.
    109. In the second phase of the process, there are additional 
compliance requirements only applicable to winning bidders. As with 
other winning bidders, any small entity that is a winning bidder will 
be required to comply with the terms of: (1) 47 CFR 1.2107(b) by 
submitting as a down payment within 10 business days after release of 
the auction closing public notice sufficient funds (in addition to its 
upfront payment) to bring its total amount of money on deposit with the 
FCC for Auction 100 to 20% of the net amount of its winning bid(s), a 
requirement adopted by the FCC in a 1994 rulemaking order; (2) 47 CFR 
1.2109(a) by submitting within 10 business days after the down payment 
deadline the balance of the net amount for each of its winning bids, a 
requirement adopted by the FCC in a 1994 rulemaking order; and (3) 47 
CFR 73.5005(a) by filing electronically within 30 days following 
release of the closing public notice, unless a longer period is 
specified by public notice, a properly completed long-form application 
and required exhibits for each construction permit won through Auction 
100, a requirement adopted by the FCC for broadcast auction winning 
bidders in a 1998 rulemaking order.
    110. As required by 47 CFR 1.2105(c), reports concerning a 
prohibited communication must be filed with the Chief of the Auctions 
Division, as detailed in the Auction 100 Procedures Public Notice.
    111. Steps Taken to Minimize the Significant Economic Impact on 
Small Entities, and Significant Alternatives Considered. The RFA 
requires an agency to describe any significant, specifically small 
business, alternatives that it has considered in reaching its proposed 
approach, which may include the following four alternatives (among 
others): (1) The establishment of differing compliance or reporting 
requirements or timetables that take into account the resources 
available to small entities; (2) the clarification, consolidation, or 
simplification of compliance and reporting requirements under the rule 
for such small entities; (3) the use of performance rather than design 
standards; and (4) an exemption from coverage of the rule, or any part 
thereof, for such small entities. See 5 U.S.C. 603(c)(1)-(4).
    112. MB and OEA anticipate that the steps taken to make numerous 
resources available to small entities and other auction participants at 
no cost should minimize any economic impact of the auction processes 
and procedures on small entities and should result in both operational 
and administrative cost savings for small entities and other auction 
participants. For example, prior to the beginning of bidding in Auction 
100, the FCC will hold a mock auction to allow eligible bidders the 
opportunity to familiarize themselves with both the processes and 
systems that will be utilized in Auction 100. During the auction, 
participants will be able to access and participate in bidding via the 
internet using a web-based system, or telephonically, providing two 
cost effective methods of participation and avoiding the cost of travel 
for in-person participation. Further, small entities as well as other 
auction participants will be able to avail themselves of a telephonic 
hotline for assistance with auction processes and procedures as well as 
a technical support hotline to assist with issues such as access to or 
navigation within the electronic Form 175 and use of the FCC's auction 
bidding system. In addition, all auction participants, including small 
business entities, will have access to various other sources of 
information and databases through the Commission that will aid in both 
their understanding and participation in the process. These resources, 
coupled with the description and communication of the bidding 
procedures before bidding begins in Auction 100, should ensure that the 
auction will be administered predictably, efficiently and fairly, thus 
providing certainty for small entities as well as other auction 
participants.

Federal Communications Commission.
Gary Michaels,
Deputy Chief, Auctions Division, Office of Economics and Analytics.
[FR Doc. 2019-13100 Filed 6-19-19; 8:45 am]
BILLING CODE 6712-01-P