*Pages 1--6 from Microsoft Word - 21540.doc* Federal Communications Commission Washington, D. C. 20554 September 25, 2002 DA 02- 2387 Via certified mail, return receipt requested Mitchell Hauser President & C. E. O. WJG MariTEL Corporation 16 East 41 st Street, 6 th Floor New York, NY 10017 WJG MariTEL Corporation c/ o Gardner Carton & Douglas 1301 K St, N. W., Suite 900 Washington, DC 20005- 3317 Attn: Mr. Mitchell Hauser Michael Hirsch, Esq. Russ Taylor, Esq. Michael Weinstein, Esq. WJG MariTEL Corporation c/ o Corporation Service Company 2908 Poston Avenue Nashville, TN 37203 Re: Final Bid Withdrawal Payment for Auction No. 20 Dear Messrs. Hauser, Hirsch, Taylor, and Weinstein: WJG MariTEL Corporation (“ WJG”), a participant in Auction No. 20, withdrew high bids on seven licenses during the course of the auction. 1 Auction No. 39, the subsequent auction for the seven licenses on which WJG withdrew high bids in Auction No. 20, has closed. 2 Therefore, in accordance with the Federal Communications Commission’s (“ Commission”) rules, we are now able to calculate WJG’s final bid withdrawal payment obligations. Under the Commission’s rules, a bidder that withdraws a high bid during the course of an auction 1 License Nos. VPC010 (Grand Forks, ND- MN), VPC015 (North Platte, NE- CO), VPC020 (Hobbs, NM-TX), VPC021 (Lubbock, TX), VPC022 (Amarillo, TX- NM), VPC038 (Farmington, NM- CO), and VPC040 (El Paso, TX- NM). Public Coast Auction Closes, Public Notice, 14 FCC Rcd 480 (WTB 1998) (“ Auction No. 20 Winning Bidders PN”). During Auction No. 20, WJG also withdrew high bids on three licenses (VPC028 (Billings, MT- WY), VPC030 (Missoula, MT), and VPC039 (Albuquerque, NM- AZ)) which were sold in that auction. Id. at Attachment C. Because these three licenses received winning bids that were less than WJG’s withdrawn bid amount, a final bid withdrawal payment in the amount of $14, 000 was assessed and deducted from WJG’s upfront payment. Id. at Attachments B and C. 2 VHF Public Coast and Land Monitoring Service Spectrum Auction Closes, Public Notice, 16 FCC Rcd 16213 (WTB 2001) (“ VHF Closing PN”). 1 Messrs. Mitchell Hauser, Michael Hirsch, Russ Taylor, and Michael Weinstein September 25, 2002 2 is subject to a bid withdrawal payment equal to the difference between the amount of the withdrawn bid and the amount of the subsequent winning bid. 3 If a high bid is withdrawn on a license that remains unsold at the close of the auction, the withdrawing bidder will be required to make an interim payment equal to three percent (3%) of the net amount of the withdrawn bid. 4 This payment amount is deducted from any upfront payments or down payments deposited for this bidder’s account with the Commission. 5 If, in a subsequent auction, that license receives a winning bid in an amount equal to or greater than the withdrawn bid amount, then no final bid withdrawal payment will be assessed, and upon appropriate request, the Commission will refund the interim three percent (3%) payment. 6 If, in a subsequent auction, the winning bid for that license is less than the bidder’s withdrawn bid amount, then the bidder will be required to make a final bid withdrawal payment equal to either the difference between the bidder’s net withdrawn bid and the subsequent net winning bid, or the difference between the bidder’s gross withdrawn bid and the subsequent gross winning bid, whichever is less. 7 With respect to WJG’s withdrawals of seven high bids in Auction No. 20, because all seven licenses were auctioned in Auction No. 39, the Commission is able to assess the full amount of the final bid withdrawal payment for each license. With respect to licenses VPC020, VPC021, VPC022, and VPC040, no final bid withdrawal payments are due because the winning bids for these licenses in Auction No. 39 were more than WJG’s withdrawn bids. With respect to licenses VPC010, VPC015, and VPC038, bid withdrawal payments are due because the winning bids for these licenses in Auction 39 were less than WJG’s withdrawn bid amounts. The cumulative sum of the final withdrawal payments is $13,400 8 as shown below and in Attachment A. Grand Forks, ND- MN VPC010 $ 9,400 North Platte, NE- CO VPC015 $ 2,000 9 Hobbs, NM- TX VPC020 $ 0 Lubbock, TX VPC021 $ 0 Amarillo, TX- NM VPC022 $ 0 Farmington, NM- CO VPC038 $ 2,000 El Paso, TX- NM VPC040 $ 0 Total Payments $ 13,400 3 47 C. F. R. § 1.2104( g)( 1) (1998). 4 47 C. F. R. § 1. 2104( g)( 1); Auction No. 20 Winning Bidders PN, 14 FCC Rcd 480 at Attachment C. 5 See 47 C. F. R. § 1.2106( e) (1998); Auction No. 20 Winning Bidders PN, 14 FCC Rcd at 480. 6 47 C. F. R. § 1. 2104( g)( 1) (1998). 7 Id. 8 VHF Closing PN, 16 FCC Rcd 16213. 9 This amount represents the difference between WJG MariTEL Corporation’s withdrawn high bid of $14,000 and Warren C Haven’s (another bidder’s) subsequent withdrawn bid of $12,000 for license VPC015. 47 C. F. R. § 1.2104( g)( 1) (“. . . In the case of multiple bid withdrawals on a single license, the payment for each bid withdrawal will be calculated based on the sequence of bid withdrawals and the amounts withdrawn in the same or subsequent auction( s)”). 2 Messrs. Mitchell Hauser, Michael Hirsch, Russ Taylor, and Michael Weinstein September 25, 2002 3 Because the seven licenses were unsold at the close of Auction No. 20, interim bid withdrawal payments equal to three percent (3%) of the withdrawn bids were deducted from any upfront payments or down payments deposited for WJG’s account with the Commission. The cumulative sum of these interim bid withdrawal payments is $3,900. 10 Therefore, in accordance with Section 1.2104 of the Commission’s rules, after applying the interim bid withdrawal payments of $3,900 to its final bid withdrawal payment obligations of $13,400, WJG owes an outstanding balance of $9,500. 11 As a result, WJG is in debt to the United States in the amount of $9,500, payable in full, immediately, and without further demand. As permitted under 31 U. S. C. § 3717, the debt is subject to interest, penalties, and administrative costs, and interest accrues from the date of this letter, which is also its mailing date. WJG, the debtor, may avoid payment of the interest if it tenders to the Commission full payment within 30 days of the date of this letter. Moreover, the debt is subject to an additional charge to cover the cost of processing and handling of delinquent debts, and a penalty charge in the amount permitted by law. The penalty charge for delinquent debt payments permitted by 31 U. S. C. § 3717 currently is 6 percent a year for the failure to pay any part of the debt more than 90 days past due. Ordering Clauses Accordingly, pursuant to Sections 4( i) and 309 of the Communications Act of 1934 as amended, 47 U. S. C. §§ 154( i), 309, and Section 1. 2104 of the Commission’s Rules, 47 C. F. R. § 1.2104( g), IT IS ORDERED that WJG MariTEL Corporation IS ASSESSED a final withdrawal payment in the amount of $9,400 for license VPC010, $2,000 for license VPC015, and $2, 000 for license VPC038 as computed in Attachment A. IT IS FURTHER ORDERED that no final withdrawal payments are due on licenses VPC020, VPC021, VPC022, and VPC040. IT IS FURTHER ORDERED that pursuant to 47 C. F. R. §§ 1.2104 and 1.2106 of the Commission’s rules WJG MariTEL’s interim bid withdrawal payments of $3, 900 will be applied towards its final bid withdrawal payments of $13,400 from Auction No. 20, leaving WJG MariTEL Corporation with a debt to the Commission of $9,500. IT IS FURTHER ORDERED that WJG MariTEL Corporation’s debt of $9,500 be paid in full immediately, in accordance with the payment instructions in Attachment B within 30 days of the date of this letter, and if it is unpaid 30 days of the date of this letter, interest will accrue from the date of this letter along with penalties and administrative costs permitted by 31 U. S. C. § 3717. 10 Auction No. 20 Wining Bidders PN, 14 FCC Rcd 480. 11 47 C. F. R. § 1. 2104( g)( 1) (“ The 3 percent interim bid withdrawal payment will be applied to any final bid withdrawal payment that assessed at the close of the subsequent auction of the license.”). To make a final bid withdrawal payment, WJG must submit payment in accordance with the instructions set forth in Attachment B. 3 Messrs. Mitchell Hauser, Michael Hirsch, Russ Taylor, and Michael Weinstein September 25, 2002 4 IT IS FURTHER ORDERED that this letter shall be sent to the applicant and its representatives by certified mail, return receipt requested. This action is taken pursuant to authority delegated by Section 0.331 of the Commission’s rules, 47 C. F. R. § 0.331. Sincerely, Margaret M. Wiener, Chief Auctions and Industry Analysis Division Wireless Telecommunications Bureau 4 Messrs. Mitchell Hauser, Michael Hirsch, Russ Taylor, and Michael Weinstein September 25, 2002 Attachment A VHF Public Coast Service Auction Multi- Auction Withdrawal Payment/ Refund Report License Number/ Market Description Auction 39 Auction No. 20: Auction No. 39: Net High Bid WJG MariTEL Corporation’s WJG MariTEL Corporation’s Withdrawn Net High Bid Withdrawal Payment VPC010 (Grand Forks, ND- MN) $9,600 $19,000 $9,400 VPC015 (North Platte, NE- CO) $8,900 $14,000 $2,000* VPC020 (Hobbs, NM- TX) $16,000 $14,000 $0 VPC021 (Lubbock, TX) $19,000 $16,000 $0 VPC022 (Amarillo, TX- NM) $19,000 $16,000 $0 VPC038 (Farmington, NM- CO) $21,000 $23,000 $2,000 VPC040 (El Paso, TX- NM) $36,000 $28,000 $0 Total Final Withdrawal Payments: $13,400 Less Total Interim Withdrawal Payments: ($ 3,900) Total Amount Due: $9,500 * This amount represents the difference between WJG MariTEL Corporation’s withdrawn high bid of $14,000 and Warren C. Haven’s subsequent withdrawn bid of $12, 000 for license VPC015 from Auction No. 20. 5 Messrs. Mitchell Hauser, Michael Hirsch, Russ Taylor, and Michael Weinstein September 25, 2002 6 Attachment B PAYMENT INSTRUCTIONS The following information is being provided to assist you in making your payment. All payments must be made in U. S. currency in the form of a wire transfer. No personal checks, cashier’s checks, or other forms of payment will be accepted. Wire transfer payments must be received by Mellon Bank by 6: 00 PM Eastern Time, no later than thirty days from the date of the ORDER; however, if the 30th day falls on a non- business day, e. g., Saturday, Sunday or holiday, it is due the next business day. Applicants must allow sufficient time for the wire transfer to be initiated and for the transmission to be completed prior to the deadline. To submit funds by wire, applicants will need the following information to properly effect the transmittal: ABA Routing Number: 043000261 Receiving Bank: Mellon Pittsburgh BNF: FCC/ Account #911- 6106 OBI Field: (Skip one space between each information item) “AUCTIONPAY” FCC REGISTRATION NO. (FRN) (same as FCC Form 159, Block 11 and/ or 21) PAYMENT TYPE CODE (enter “APEN”) same as FCC Form 159, Block 24A FCC CODE 1 (same as FCC Form 159, Block 28A: (“ 20”) PAYOR NAME (same as FCC Form 159, Block 2) LOCKBOX No.: 358850 A completed FCC Remittance Advice Form (FCC Form 159, Version 2/ 00) must accompany payments. On the same business day that the applicant submits payment to Mellon Bank, the applicant must submit a completed FCC Form 159 via facsimile at (412) 209- 6045, at least one- hour prior to placing the order for the wire transfer. The specified debt is due and payable to the United States immediately and without demand, and it is subject to interest, penalties, and additional administrative costs. Interest accrues from the date of the letter; however, to avoid the payment of charges (i. e., interest, penalties, and administrative costs) and enforced collection, full payment must be made and received within 30 days from the date of the letter. Debtor’s failure to make complete timely payment will result in assessment of such charges permitted by 31 U. S. C. § 3717. For questions regarding the submission of payment, and the FCC Form 159, contact Gail Glasser or Tim Dates, Office of the Managing Director, Financial Operations Center, Auctions Accounting Group, at (202) 418- 0578 or (202) 418- 0496. 6