*Pages 1--7 from Microsoft Word - 26600* PUBLIC NOTICE FEDERAL COMMUNICATIONS COMMISSION News Media Information: (202) 418- 0500 445 12th STREET, S. W. Fax- On- Demand: (202) 418- 2830 WASHINGTON, D. C. 20554 Internet: http:// www. fcc. gov ftp. fcc. gov DA 03- 1090 April 7, 2003 AUCTION OF LICENSES FOR LOWER AND UPPER PAGING BANDS Status of FCC Form 175 Applications to Participate in the Auction Report No. AUC- 03- 48- C (Auction No. 48) The Federal Communications Commission (“ Commission”) has received 114 FCC Form 175 applications to participate in Auction No. 48 scheduled to begin on Tuesday, May 13, 2003, for 10,202 licenses in the Lower and Upper Paging bands. The applications have been reviewed for completeness and compliance with the Commission’s rules, and have been classified into the categories listed below. Application Categories: ACCEPTED FOR FILING.............................................. 52 Applications INCOMPLETE.................................................................. 62 Applications Accepted: Applications accepted for filing are listed alphabetically in Attachment A. These applicants will become qualified bidders upon receipt of the required upfront payment due by 6: 00 p. m. ET on Monday, April 14, 2003. 1 With respect to the FCC Form 175 applications, these applicants need take no further action except as may be necessary to maintain the accuracy of their applications. 2 Attachment A also includes FCC account numbers that were automatically created by the FCC software system for each applicant and indicates the number of licenses selected by each applicant on its FCC Form 175 filing. In previous auctions, Attachment A has listed the licenses selected in each accepted application. However, due to the large volume of licenses in Auction No. 48, lists of the licenses selected in each accepted application will be provided in electronic format only, available with this public notice at http:// wireless. fcc. gov/ auctions/ 48/. 1 See 47 C. F. R. § 1. 2106. 2 See 47 C. F. R. § 1. 65. See also Auction of Licenses in the Lower and Upper Paging Bands Scheduled for May 13, 2003, Notice and Filing Requirements, Minimum Opening Bids, Upfront Payments and Other Auction Procedures, Public Notice, DA 02- 3560, at 18, 21- 24 (rel. December 20, 2002), 68 Fed. Reg. 6151 (“ Auction No. 48 Procedures Public Notice”). 1 2 Incomplete: Applications found to be incomplete are listed alphabetically in Attachment B. Applicants whose FCC Form 175 applications have been deemed incomplete will receive overnight correspondence indicating what information is required to make the applications acceptable for filing. These applicants may become qualified bidders only if they: (1) make the required upfront payments by 6: 00 p. m. ET on Monday, April 14, 2003; and (2) resubmit their applications by 6: 00 p. m. ET on Tuesday, April 15, 2003, to correct the deficiencies indicated. Applicants also must maintain the accuracy of their FCC Form 175 applications as required by the Commission’s rules. 3 Applicants are advised that Attachment B includes FCC account numbers that were automatically created by the FCC software system for each applicant. The filing window for resubmitting FCC Form 175 applications is now open. Corrected applications must be filed no later than 6: 00 p. m. ET on Tuesday, April 15, 2003. This will be the only opportunity to cure FCC Form 175 defects; late resubmissions will not be accepted. In addition, if an application remains incomplete or otherwise deficient after the resubmission deadline has passed, the application will be dismissed. UPFRONT PAYMENT DEADLINE Upfront payments and accompanying FCC Remittance Advice (FCC Form 159) for Auction No. 48 are due at Mellon Bank, Pittsburgh, Pennsylvania, no later than 6: 00 p. m. ET on Monday, April 14, 2003. Payments must be made by wire transfer and applicants must include their FCC Registration Number (FRN). No other payment method is acceptable for this auction. Applicants are reminded to use their FRN and Taxpayer Identification Number (TIN), not their FCC Account Numbers on the FCC Form 159. Applicants must fax a completed FCC Form 159 (Revised February 2000) to Mellon Bank at (412) 209- 6045 at least one hour before placing the order for the wire transfer (but on the same business day). Applicants that have filed applications deemed to be incomplete, as noted in this public notice, must submit timely and sufficient upfront payments by the April 14, 2003 deadline for such payments, which is prior to the April 15, 2003 deadline for the resubmitted applications. If no upfront payment is made or the application remains incomplete following its resubmission, the application will be dismissed. If the applicant has provided its FRN, TIN and wire transfer instructions, any upfront payment made prior to dismissal will be refunded automatically. We remind applicants that to avoid untimely upfront payments they should discuss arrangements (including bank closing schedules) with their banker several days before making the wire transfer, and allow sufficient time for the transfer to be initiated and completed before the deadline. Detailed information regarding upfront payments including additional requirements for “former defaulters” can be found in the Auction No. 48 Procedures Public Notice under Section II. E and Section III. D. 4 Note: Applicants are reminded to submit the same FRN with all future payments. OTHER IMPORTANT INFORMATION 3 See Auction No. 48 Procedures Public Notice at 19. 4 Id. at 18, 22- 24. 2 3 Qualified Bidders: Approximately two weeks after the upfront payment deadline, following Commission review of resubmitted FCC Form 175 applications, and correlation of payments and applications, a public notice listing all applicants qualified to bid in the auction will be released. The same public notice will also include instructions for participating in the mock auction and a bidding schedule for the mock auction and the first day of the auction. Due Diligence: Potential bidders are reminded that there are a number of incumbent paging licensees already licensed and operating in the lower and upper paging bands on frequencies that will be subject to the upcoming auction. These incumbents may also have pending applications to make changes in authorized facilities. Geographic area licensees must protect such incumbents from harmful interference. 5 These limitations may restrict the ability of such geographic licensees to use certain portions of the electromagnetic spectrum or provide service to certain regions in their geographic license areas. To aid potential bidders, Attachment G to the Auction No. 48 Procedures Public Notice lists paging matters pending before the Commission in the bands being auctioned. The Commission makes no representations or guarantees that the matters listed in Attachment G are the only pending matters that could affect spectrum availability in these services. Potential bidders also should be aware that certain applications (including those for modification), petitions for rulemaking, requests for special temporary authority (“ STA”), waiver requests, petitions to deny, petitions for reconsideration, and applications for review may be pending before the Commission and relate to particular applicants or incumbent licensees. In addition, certain judicial proceedings that may relate to particular applicants or incumbent licensees, or the licenses available in Auction No. 48 may be commenced, or may be pending, or may be subject to further review. We note that resolution of these matters could have an impact on the availability of spectrum in Auction No. 48. Some of these matters (whether before the Commission or the Courts) may not be resolved by the time of the auction. Potential bidders are strongly encouraged to conduct their own research prior to Auction No. 48 in order to determine the existence of pending proceedings that might affect their decisions regarding participation in the auction. Participants in Auction No. 48 are strongly encouraged to continue such research during the auction. In addition, potential bidders seeking licenses for geographic areas adjacent to the Canadian and Mexican border should be aware that the use of some or all of the channels they acquire in the auction could be restricted as a result of current or future agreements with Canada or Mexico. 6 Potential bidders may obtain information about incumbent licensees through the Commission’s licensing database on the Internet at http:// wireless. fcc. gov/ uls. The Commission makes no representations or guarantees regarding the accuracy or completeness of information in its data bases, including the accuracy or completeness of information that has been provided by incumbent licensees and incorporated into the databases. Potential bidders are strongly encouraged to physically inspect any sites located in, or near, the EA, or MEA for which they plan to bid. Potential bidders 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 licenses available in Auction No. 48. Prohibition of Collusion: Bidders are reminded that Section 1.2105( c) of the Commission’s rules prohibits applicants for licenses in any of the same geographic license areas from communicating with 5 See Auction No. 48 Procedures Public Notice at 8- 10. 6 For reference to relevant agreements, see id., at 9, nn. 22- 23. 3 4 each other during the auction about bids, bidding strategies, or settlements unless they have identified each other as parties with whom they have entered into agreements under Section 1.2105( a)( 2)( viii). The Bureau has previously stated that auction applicants who have applied for licenses in any of the same geographic areas, and who are also applicants for licenses in the same or competing services must affirmatively avoid all discussions with each other that affect, or in their reasonable assessment have the potential to affect their bidding or bidding strategy. 7 For Auction No. 48, this prohibition became effective at the short- form application filing deadline on Friday, March 21, 2003, and will end on the post- auction down payment deadline, which will be announced in a future public notice. 8 If parties had agreed in principle on all material terms, those parties must have been identified on the short- form application under Section 1.2105( c), even if the agreement had not been reduced to writing. If parties had not agreed in principle by the filing deadline, an applicant should not have included the names of those parties on its application, and must not have continued negotiations with other applicants for licenses in the same geographic areas. 9 The Bureau has encouraged bidders competing for licenses in the same geographic license areas not to use the same individual as an authorized bidder. 10 A violation of the anti- collusion rule could occur if an individual acts as the authorized bidder for two or more competing applicants, and conveys information concerning the substance of bids or bidding strategies between the bidders he or she is authorized to represent in the auction. A violation could similarly occur if the authorized bidders are different individuals employed by the same organization (e. g., law firm or consulting firm). In such a case, at a minimum, applicants should take precautionary steps to prevent communication between authorized bidders. 11 In addition, Section 1.65 of the Commission’s rules requires an applicant to maintain the accuracy and completeness of information furnished in its pending application and to notify the Commission within 30 days of any substantial change that may be of decisional importance to that application. 12 Thus, Section 1.65 requires an auction applicant to notify the Commission of any violation of the anti- collusion rules upon learning of such violation. Bidders therefore are required to make such notification to the Commission immediately upon discovery. 13 For further details regarding the prohibition against collusion refer to the Auction No. 48 Procedures Public Notice under Section I. B. 2. 7 See Wireless Telecommunications Bureau Provides Guidance on the Anti- Collusion Rule for D, E, and F Block Bidders, Pubic Notice, DA 96- 1460, 15 FCC Rcd 6196 (1996). 8 47 C. F. R. § 1.2105( c)( 1). 9 See “Wireless Telecommunications Bureau Clarifies Spectrum Auction Anti- Collusion Rules,” Public Notice, 11 FCC Rcd 9645 (1995). 10 See Auction No. 48 Procedures Public Notice at 7- 8. 11 See In re Application of Nevada Wireless for a License to Provide 800 MHz Specialized Mobile Radio Service in the Farmington, NM- CO Economic Area (EA- 155) Frequency Band A, Memorandum Opinion and Order, 13 FCC Rcd. 11973, 11977 ¶ 11 (1998) (“ Nevada Wireless”). 12 See 47 C. F. R. § 1.65. 13 The Commission recently amended Section 1.2105 to require auction applicants to report prohibited communications in writing to the Commission immediately, but in no case later than five business days after the communication occurs. In the Matter of Amendment of Part 1 of the Commission’s Rules – Competitive Bidding Procedures, Seventh Report and Order, 16 FCC Rcd 17546, 17555, ¶ 17 (2001). 4 5 Winning bidders will be required to disclose in their long- form applications the specific terms, conditions, and parties involved in all bidding consortia, joint ventures, partnerships, and other arrangements entered into relating to the competitive bidding process. Bidders found to have violated the anti- collusion rule may be subject to sanctions. 14 In addition, applicants are reminded that they are subject to the antitrust laws, which are designed to prevent anti- competitive behavior in the marketplace. If a bidder is found to have violated the antitrust laws 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. 15 Auction Discount Voucher: On June 8, 2000, the Commission awarded Qualcomm, Inc. a transferable Auction Discount Voucher (“ ADV”) in the amount of $125,273, 878.00. 16 This ADV may be used by Qualcomm or its transferee, in whole or in part, to adjust a winning bid in any spectrum auction prior to June 8, 2003, subject to terms and conditions set forth in the Commission’s Order. 17 Qualcomm transferred $10,848,000.00 of the ADV to a winning bidder in FCC Auction No. 35 and the transferee used its portion of the ADV to adjust one of its winning bids in Auction No. 35. 18 The remaining portion of Qualcomm’s ADV could be used to adjust winning bids in another FCC auction, including Auction No. 48. Ex Parte Rule: Applicants should also be aware that the Commission has generally exempted auction proceedings from the strict requirements of the ex parte rule found in Section 1.1208 19 of the Commission’s rules. 20 Mock Auction: All applicants found to be qualified bidders will be eligible to participate in a mock auction on Thursday, May 8, 2003. We encourage all qualified bidders to take advantage of this mock 14 See 47 C. F. R. §§ 1.2105( c), 1.2107( d), and 1.2109( d). 15 47 C. F. R. §1. 2109 (d). 16 Qualcomm Incorporated Petition for Declaratory Ruling Giving Effect to the Mandate of the District of Columbia Circuit Court of Appeals, Order, 16 FCC Rcd 4042 (2000) (“ Qualcomm Order”). 17 Id. See also Qualcomm, Inc. Petition for Waiver of Certain Terms and Conditions of its Auction Discount Voucher, Order, FCC 02- 321, 17 FCC Rcd. 24311 (WTB 2002). 18 See Supplement to Public Notice Released August 22, 2001 By Wireless Telecommunications Bureau Announcing It Is Prepared to Grant Four C and F Block Broadband Personal Communications Services (PCS) Licenses Upon Full and Timely Payment, Auction Event No. 35, DA 01- 2071, Public Notice, 16 FCC Rcd 16025 (2001). All of the terms and conditions applicable to Qualcomm’s use of the ADV shall apply to its use by a transferee, except that a transferee may not transfer the ADV to an entity other than back to Qualcomm. See Qualcomm Order, 16 FCC Rcd 4042 (2000); see also Letter from Thomas J. Sugrue, Chief, Wireless Telecommunications Bureau, Federal Communications Commission, to Veronica M. Ahern, Attorney for Qualcomm Incorporated (December 22, 2000). 19 47 C. F. R. §1. 1208. 20 See “Commission Announces that Mutually Exclusive ‘Short- Form’ Applications (Form 175) to Participate in Competitive Bidding Process (‘ Auctions’) Are Treated as Exempt for Ex Parte Purposes,” Public Notice, 9 FCC Rcd 6760 (1994). 5 7 (800) 876- 7060. Consumers who have concerns about specific proposals may also call the FCC Consumer Center at (888) CALL- FCC (( 888) 225- 5322). CONTACT INFORMATION For questions about payment or instructions for wiring upfront payments, contact Gail Glasser or Tim Dates, Auctions Accounting Group, at (202) 418- 1995. For specific questions about an applicant’s incomplete status, the applicant should contact the staff reviewer identified in the correspondence sent to the applicant by overnight mail. For technical assistance with using the FCC Automated Auction System, contact the FCC Technical Support Hotline at (202) 414- 1250 (V) or (202) 414- 1255 (TTY). The FCC Technical Support Hotline is generally available Monday through Friday from 8: 00 a. m. to 6: 00 p. m. ET. All calls to the FCC Technical Support Hotline are recorded. For additional information, contact: Rosemary Cabral, Auctions Legal Branch (regarding legal questions) at (202) 418- 0660; Roy Knowles, Analyst, Auctions Operations (regarding bidding and auction structure), or Barbara Sibert, Auctions Operations (regarding bidding and general filing status) at (717) 338- 2888. - FCC - 7