*Pages 1--6 from Microsoft Word - 60664.doc* Federal Communications Commission Washington, D. C. 20554 October 31, 2006 DA 06- 2173 Via Certified Mail, Return Receipt Requested Space Data Spectrum Holdings, LLC Attn: Gerald M. Knoblach 460 South Benson Lane, Suite 11- 12 Chandler, AZ 85224 Re: Final Bid Withdrawal Payment For Auction No. 41 Dear Mr. Knoblach: Space Data Spectrum Holdings, LLC (“ SDSH”), a participant in Auction No. 41, withdrew high bids on 32 licenses in that auction. 1 Auction No. 50, the subsequent auction for the 32 licenses on which SDSH withdrew its high bids, has closed. As shown on Attachment A, in accordance with the Federal Communications Commission’s (“ Commission’s”) rules, we are now able to calculate SDSH’s final bid withdrawal payment obligations for the 32 licenses. Under the Commission’s rules, a bidder that withdraws a high bid during the course of an auction is subject to a bid withdrawal payment equal to the difference between the amount of the withdrawn bid and the amount of the subsequent winning bid. If a high bid is withdrawn on a license that remains unsold at the close of the auction, the withdrawing bidder will be required to make an interim payment equal to three percent (3%) of the net amount of the withdrawn bid. 2 This payment amount is deducted from any upfront payments or down payments deposited for this bidder’s account with the Commission. 3 If, in a subsequent auction, that license receives a winning bid in an amount equal to or greater than the withdrawn bid amount, then no final bid withdrawal payment will be assessed, and, upon appropriate request, the Commission will refund the interim three percent (3%)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. 4 If, in a subsequent auction, the winning bid for that 1 These licenses are listed in Attachment A. SDSH also withdrew bids on four other licenses in Auction No. 41: MTA022- 31 (Denver) and MTA024- 31 (Seattle), MTA004- 31 (San Francisco, Oakland, San Jose) and MTA039- 31 (El Pase- Albuquerque). For two licenses MTA022- 31 and MTA024- 31, the Commission received higher bids in Auction No. 41. Accordingly, the Commission did not assess withdrawal payments for those licenses. Two other licenses, MTA004- 31 and MTA039- 31 were resold for lower bids in Auction No. 41 and accordingly the Commission assessed withdrawal penalties totaling $11,250. 00 for those withdrawn bids. “Narrowband PCS Spectrum Auction Closes,” Public Notice, DA 01- 2429, 16 FCC Rcd 18663 (rel. Oct. 18, 2001). 2 Implementation of Section 309( j) of the Communications Act— Competitive Bidding, PP Docket No. 93-253, Fifth Report and Order, 9 FCC Rcd 5532, 5563 at n. 51 (1994); C. H. PCS, Inc., 11 FCC Rcd 14495 (1996) (requiring a three percent deposit). 3 47 C. F. R. § 1. 2106( d) and (e). 4 47 C. F. R. § 1. 2104( g)( 1). 1 Space Data Spectrum Holdings, LLC DA 06- 2173 October 31, 2006 2 license is less than the bidder’s withdrawn 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. 5 As shown in Attachment A, in accordance with Section 1.2104( g)( 1), after applying any interim bid withdrawal payments or amounts on deposit with the Commission, SDSH has an outstanding balance of $7,381.00. SDSH is in debt to the United States in the amount of $7,381.00, 6 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. SDSH, the debtor, may avoid payment of the interest if it tenders to the Commission full payment within 30 days of the date of the 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, IT IS ORDERED that, 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( g) of the Commission’s rules, 47 C. F. R. § 1.2104( g), Space Data Spectrum Holdings, LLC is ASSESSED final bid withdrawal payments as computed in Attachment A. IT IS FURTHER ORDERED that, pursuant to 47 C. F. R. §§ 1.2104 and 1.2106, Space Data Spectrum Holdings, LLC’s interim bid withdrawal payments or funds on deposit will be applied towards the sum of the final bid withdrawal payment. IT IS FURTHER ORDERED that Space Data Spectrum Holdings, LLC’s debt of $7,381.00 is to be paid 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 after 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. 5 47 C. F. R. § 1. 2104( g)( 1). 6 See Attachments A and B. 2 Space Data Spectrum Holdings, LLC DA 06- 2173 October 31, 2006 3 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, Rita Cookmeyer Financial Policy Analyst Auctions and Spectrum Access Division Wireless Telecommunications Bureau 3 Space Data Spectrum Holdings, LLC DA 06- 2173 October 31, 2006 4 ATTACHMENT A Multi- Auction Bid Withdrawal Payment Report License Number Frequency Block License Description Withdrawn Gross Bids Auction #41 Withdrawn Net Bids Auction #41 Re- auction Gross Bids Auction #50 Re- auction Net Bids Auction #50 Final Bid Withdrawal Payment MTA003- 31 Chicago $48, 000.00 $36, 000.00 $47, 000.00 $35, 250.00 $750. 00 MTA005- 31 Detroit $40, 000.00 $30, 000.00 $52, 000.00 $39, 000.00 $0. 00 MTA006- 31 Charlotte- Greensboro- Greenville $39, 000.00 $29, 250.00 $37, 000.00 $27, 750.00 $1, 500. 00 MTA011- 31 Atlanta $28, 000.00 $21, 000.00 $21, 000.00 $15, 750.00 $5, 250. 00 MTA012- 31 Minneapolis- St. Paul $24, 000.00 $18, 000.00 $23, 000.00 $17, 250.00 $750. 00 MTA013- 31 Tampa- St Petersburg- Orlando $22, 000.00 $16, 500.00 $30, 000.00 $22, 500.00 $0. 00 MTA015- 31 Miami- Fort Lauderdale $21, 000.00 $15, 750.00 $15, 000.00 $11, 250.00 $4, 500. 00 MTA016- 31 Cleveland $20, 000.00 $15, 000.00 $20, 000.00 $15, 000.00 $0. 00 MTA017- 31 New Orleans- Baton Rouge $20, 000.00 $15, 000.00 $20, 000.00 $15, 000.00 $0. 00 MTA018- 31 Cincinnati- Dayton $19, 000.00 $14, 250.00 $18, 000.00 $13, 500.00 $750. 00 MTA019- 31 St. Louis $19, 000.00 $14, 250.00 $42, 000.00 $31, 500.00 $0. 00 MTA025- 31 Puerto Rico- U. S. Virgin Islands $14, 000.00 $10, 500.00 $13, 400.00 $10, 050.00 $450. 00 MTA026- 31 Louisville- Lexington- Evansville $14, 000.00 $10, 500.00 $14, 000.00 $10, 500.00 $0. 00 MTA027- 31 Phoenix $14, 000.00 $10, 500.00 $13, 200.00 $9, 900. 00 $600. 00 MTA028- 31 Memphis- Jackson $14, 000.00 $10, 500.00 $13, 900.00 $10, 425.00 $75. 00 MTA029- 31 Birmingham $13,000. 00 $9, 750. 00 $12, 600. 00 $9, 450. 00 $300. 00 MTA030- 31 Portland $12, 000.00 $9, 000. 00 $12, 000. 00 $9,000. 00 $0. 00 MTA031- 31 Indianapolis $12, 000.00 $9, 000. 00 $11, 600. 00 $8,700. 00 $300. 00 MTA032- 31 Des Moines- Quad Cities $12, 000.00 $9, 000. 00 $11, 800. 00 $8,850. 00 $150. 00 MTA034- 31 Kansas City $12, 000.00 $9, 000. 00 $11, 600. 00 $8,700. 00 $300. 00 MTA035- 31 Buffalo- Rochester $11, 000.00 $8, 250. 00 $11, 000. 00 $8,250. 00 $0. 00 4 Space Data Spectrum Holdings, LLC DA 06- 2173 October 31, 2006 5 ATTACHMENT A (continued) Multi- Auction Bid Withdrawal Payment Report Sum of Final Bid Withdrawal Payments $18, 825.00 Less Total of Interim Withdrawal Payments and Amounts on Deposit $11, 444.00 Outstanding Balance Due on Final Withdrawal Payments $7, 381. 00 License Number Frequency Block License Description Withdrawn Gross Bids Auction #41 Withdrawn Net Bids Auction #41 Re- auction Gross Bids Auction #50 Re- auction Net Bids Auction #50 Final Bid Withdrawal Payment MTA036- 31 Salt Lake City $10,000. 00 $7, 500. 00 $46, 000. 00 $34, 500. 00 $0. 00 MTA037- 31 Jacksonville $9, 100. 00 $6,825. 00 $6,700. 00 $5,025. 00 $1, 800. 00 MTA038- 31 Columbus $8, 600. 00 $6,450. 00 $8,300. 00 $6,225. 00 $225. 00 MTA040- 31 Little Rock $8, 200. 00 $6,150. 00 $7,800. 00 $5,850. 00 $300. 00 MTA041- 31 Oklahoma City $7, 500. 00 $5,625. 00 $7,500. 00 $5,625. 00 $0. 00 MTA042- 31 Spokane- Billings $7, 500. 00 $5,625. 00 $7,300. 00 $5,475. 00 $150. 00 MTA043- 31 Nashville $7, 100. 00 $5,325. 00 $6,700. 00 $5,025. 00 $300. 00 MTA044- 31 Knoxville $6, 900. 00 $5,175. 00 $6,700. 00 $5,025. 00 $150. 00 MTA045- 31 Omaha $6, 600. 00 $4,950. 00 $6,400. 00 $4,800. 00 $150. 00 MTA046- 31 Wichita $4, 500. 00 $3,375. 00 $4,400. 00 $3,300. 00 $75. 00 MTA048- 31 Tulsa $4, 400. 00 $3,300. 00 $4,400. 00 $3,300. 00 $0. 00 5 Space Data Spectrum Holdings, LLC DA 06- 2173 October 31, 2006 6 ATTACHMENT B The following information is being provided to assist you in making your payment. PAYMENT INSTRUCTIONS 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 500 Ross Street Pittsburgh, PA 15262 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: (“ 41”) PAYOR NAME (same as FCC Form 159, Block 2) LOCKBOX No.: 358850 A completed FCC Remittance Advice Form (FCC Form 159, Version 2/ 03) 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 ORDER; 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 ORDER. 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, Office of the Managing Director, Financial Operations Center, Auctions Accounting Group, at (202) 418- 0578. 6