Federal Communications Commission Washington, D.C. 20554 April 3, 2012 DA 12-520 Via Certified Mail, Return Receipt Requested Tel-Com Wireless Cable TV Corporation Attn: Fern L. Duquette 501 N. Grandview Avenue, Suite 201 Daytona Beach, FL 32118 Re: Final Default Payment for Auction 6 License BTA189 (Hickory, North Carolina) DO NOT DISCARD THIS IMPORTANT NOTICE OF A DEMAND FOR PAYMENT OF A DEBT OWED THE UNITED STATES AND ORDER OF PAYMENT Dear Mr. Duquette: This Order provides notice and demands payment of a debt owed to the United States based on the default of Tel-Com Wireless Cable TV Corporation (“Tel-Com Wireless”) on its final payment for a license it won in Auction 6. Tel-Com Wireless had the winning bid in Auction 6 for the Broadband Radio Service (“BRS”)1 license in the Hickory, North Carolina Basic Trading Area (“BTA”). After the close of Auction 6, Tel- Com Wireless defaulted on its final payment obligation for this license.2 Thus, pursuant to the Commission’s rules,3 Tel-Com Wireless owes a default payment, which is a debt owed to the United States.4 In 1997, the Commission assessed Tel-Com Wireless a total initial default payment of $55,711.81, from the monies it had on deposit.5 A new license for the same spectrum rights was offered 1 The Broadband Radio Service was originally called the Multipoint Distribution Service (“MDS”), and the Tel- Com Wireless license was for MDS spectrum. However, in 2004, the Commission renamed MDS as BRS. See Amendment of Parts 1, 21, 73, 74 and 101 of the Commission's Rules to Facilitate the Provision of Fixed and Mobile Broadband Access, Educational and Other Advanced Services in the 2150-2162 and 2500-2690 MHz Bands, Report and Order and Further Notice of Proposed Rulemaking, 19 FCC Rcd 14165 (2004). Accordingly, in this order we refer to the service by its current name of BRS. 2 Tel-Com Wireless defaulted on Hickory, North Carolina (BTA) B189 authorization in Auction 6. See In the Matter of Tel-Com Wireless Cable TV Corporation, BTA No. B189 Multipoint Distribution Service, File No. BMDS960510HAS, Order, 12 FCC Rcd 6747 (1997). 3 See 47 C.F.R. §§ 1.2104(g)(2), 1.2109(b). 4 See 31 U.S.C. § 3701(b)(1). 5 See also Order, 12 FCC Rcd at 6749; see 47 C.F.R. § 1.2104(g)(2). Tel-Com Wireless Cable Television DA 12-520 April 3, 2012 Page 2 in a subsequent auction of BRS licenses (Auction 86),6 and because it received a winning bid,7 the Commission is now able to calculate Tel-Com Wireless’ final default payment obligation with respect to the license.8 Under the Commission’s rules, at the close of the auction, a winning bidder assumes a binding obligation to pay the full amount of its accepted winning bid. A bidder who defaults on that obligation or is disqualified is subject to a default payment.9 The default payment has two components. The first component is the difference between the bidder’s net defaulted bid and the subsequent net winning bid, or the difference between the bidder’s gross defaulted bid and the subsequent gross winning bid, whichever is less, the next time a license for the spectrum is won, should the subsequent winning bid be less than the defaulted bid.10 The second component of the default payment is an additional payment, which, pursuant to the rule in effect at the time of Auction 6, is equal to three percent (3%) of the defaulter’s bid, or the subsequent winning bid, whichever is less.11 In the event that the subsequent winning bid is greater than or equal to the defaulted bid, the total default payment is equal to three percent (3%) of the defaulted bid.12 As shown in Attachment A, in accordance with section 1.2104(g)(2) of the Commission’s rules, we have completed the final default payment calculation and, after applying the monies Tel-Com Wireless has on deposit, Tel-Com Wireless owes an outstanding balance of $1,354,164.40. This debt to the United States is payable in full and without further demand within 30 days of the date of this Order in accordance with the Notice Information provided below and Payment Instructions at Attachment B. Important Notice Information The following provides notification of procedures and information required by the Debt Collection Improvement Act of 1996 (“DCIA”).13 The outstanding balance shown in Attachment A is a debt Tel-Com Wireless owes to the United States. It is payable in full and without further demand, and payment must be received no later than the payment due date, which is 30 days from the date of this Order (“Due Date”).14 Any portion of the debt unpaid at the end of the Due Date will be considered 6 See 47 C.F.R. § 27.5(i)(2). 7 See Auction of Broadband Radio Service Licenses Closes; Winning Bidders Announced for Auction 86, Public Notice, 24 FCC Rcd 13572 (2009). 8 47 C.F.R § 1.2104(g)(2). 9 47 C.F.R. §§ 1.2104(g)(2), 1.2109(b). 10 47 C.F.R § 1.2104(g)(2)(i). 11 47 C.F.R § 1.2104(g)(2)(1996). 12 Id. 13 Public Law 104-134, 110 Stat. 1321, 1358 (Apr. 26, 1996) codified in relevant part at 31 U.S.C. §§ 3716 (administrative offset) and 3717 (interest and penalty on claims); see also 47 C.F.R. §§ 1.1911, 1.1912, and 1.1940. 14 As noted at Attachment B, if the 30th day falls on a non-business day, payment must be received on the next business day. Tel-Com Wireless Cable Television DA 12-520 April 3, 2012 Page 3 delinquent and administrative charges (incurred for processing and handling delinquent debts),15 interest,16 and penalties17 will accrue beginning from that date. Interest accrues at a minimum annual rate established annually by the United States Treasury in accordance with 31 U.S.C. § 3717.18 A penalty of six percent (6%) accrues on any portion of the debt that remains unpaid for more than 90 days from the Due Date.19 However, the Commission will waive payment of the accrued interest, if the full amount of the debt is paid within 30 days of the Due Date.20 In addition to these charges, the Commission may initiate administrative offset,21 and it may refer the delinquent debt to the United States Treasury or the Department of Justice (“DOJ”) for further collection action.22 The United States Treasury will impose an additional administrative collection charge,23 and it may also commence administrative offset.24 An additional surcharge may be imposed, if DOJ initiates judicial action to recover judgment.25 Furthermore, any portion of the debt that is unpaid after the Due Date is a delinquent debt, which will trigger application of the Commission’s red light procedures at 47 C.F.R. § 1.1910. 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)(2) of the Commission’s rules, 47 C.F.R. § 1.2104(g)(2), Tel-Com Wireless Cable TV Corporation is ASSESSED a final default payment obligation as computed in Attachment A. IT IS FURTHER ORDERED that, pursuant to sections 1.2104 and 1.2106 of the Commission’s rules, 47 C.F.R. §§ 1.2104 and 1.2106, Tel-Com Wireless Cable TV Corporation’s interim payment or funds on deposit will be applied towards the final default payment. 15 31 U.S.C. § 3717(e)(1); 47 C.F.R. § 1.1940(c). 16 31 U.S.C. § 3717(b); 47 C.F.R. § 1.1940(b). 17 31 U.S.C. § 3717(e); 47 C.F.R. § 1.1940(d). 18 47 C.F.R. § 1.1940(b). 19 31 U.S.C. § 3717(e)(2); 47 C.F.R. § 1.1940(d). 2031 U.S.C. § 3717(d); 47 C.F.R. § 1.1940(g). 2147 C.F.R. § 1.1912. Under this provision the Commission may refer the debt to the United States Treasury for centralized administrative offset whereby, subject to certain exceptions, money otherwise payable to the debtor by the United States government may be used to satisfy the debt. In addition, “unless otherwise prohibited by law,” the Commission may conduct “non-centralized, ad hoc case-by-case offsets when centralized offset is unavailable or inappropriate.” 47 C.F.R. § 1.1912(c). 22 31 U.S.C. §§ 3711(g), 3716; 28 U.S.C. § 3001, et seq.; 47 C.F.R. § 1.1912. Transfer may be made without further notice at any time after the Due Date. 23 31 U.S.C. § 3717(e); 31 C.F.R. § 285.12 (j). 24 31 U.S.C. § 3716; 47 C.F.R. § 1.1912(b) (mandatory centralized administrative offset). 25 28 U.S.C. § 3011. Tel-Com Wireless Cable Television DA 12-520 April 3, 2012 Page 4 IT IS FURTHER ORDERED that Tel-Com Wireless Cable TV Corporation’s debt of $1,354,164.40 is payable in full and without further demand, and it must be paid within 30 days of the date of this Order (the Due Date), in accordance with the payment instructions in Attachment B, and any portion of the debt unpaid after the Due Date is delinquent, and under 31 U.S.C. § 3717, administrative charges, interest, and penalties will accrue. IT IS FURTHER ORDERED that this Order and a FCC Remittance Advice Form (FCC Form 159, Version 2/03) shall be sent to Tel-Com Wireless Cable TV Corporation 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, Gary D. Michaels Deputy Chief, Auctions and Spectrum Access Division Wireless Telecommunications Bureau Tel-Com Wireless Cable Television DA 12-520 April 3, 2012 Page 5 ATTACHMENT A Multi-Auction Default Payment Report License Number Frequency Block Defaulted Gross Bid Auction 6 Defaulted Net Bid Auction 6 Re-auction Gross Bid Auction No. 86 Re-auction Net Bid Auction No. 86 3% Payment Lower Difference Payment Final Payment MD-BTA189 (Hickory, North Carolina) $2,184,777.00 $1,857,060.45 $327,000.00 $327,000.00 $9,810.00 $1,530,060.45 $1,539,870.45 Total Final Default Payment Due $1,539,870.45 Less Amount on Deposit $185,706.05 Outstanding Balance Due on Final Default Payment $1,354,164.40 Tel-Com Wireless Cable Television DA 12-520 April 3, 2012 Page 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 6:00 PM Eastern Time, no later than thirty days from the date of this 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: 021030004 Receiving Bank: TREAS NYC 33 Liberty Street New York, NY 10045 ACCOUNT NAME: FCC ACCOUNT NUMBER: 27000001 OBI Field: (Skip one space between each information item) “AUCTIONPAY” APPLICANT FRN: (same as FCC Form 159, block 21) PAYMENT TYPE CODE: (same as FCC Form 159, block 24A: “APEN”) FCC CODE 1: (same as FCC Form 159, Block 28A: (“35”) PAYOR NAME: (same as FCC Form 159, Block 2) LOCKBOX NO.: #979088 Please fax a completed remittance advice (Form 159) to U.S. Bank, St. Louis, Missouri at (314) 418-4232 at least one hour before initiating the wire transfer (but on the same business day). For questions regarding the submission of payment, and the FCC Form 159, contact Gail Glasser, Office of the Managing Director, Financial Operations, Auctions Accounting Group, at (202) 418-0578.