In the Matter of Federal Communications Commission Before the Federal Communications Commission Washington, D.C. 20554 DA 99-1344 ) ) ) ) ) ) CUID No. CA0772 (City of Yorba Linda) Jones Growth Partners, II, L.P. Complaint Regarding Cable Programming Services Tier Rates ORDER Adopted: July 8, 1999 Released: July 9, 1999 By the Acting Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1. In this Order we consider complaints against the rates charged by the above-referenced operator ("Operator") for its cable programming services tier ("CPST") in the community referenced above. We have previously resolved complaints filed against Operator's CPST rates in effect through May 14, 1994 ("Prior Order").' In our Prior Order, we stated that our findings "do not in any way prejudge the reasonableness of the price for CPS service after May 14, 1994 under our new rate regulations. "2 This Order addresses only the reasonableness of Operator's CPST rates in effect after May 14, 1994. 2. Under the Communications Act,3 the Federal Communications Commission ("Commission") is authorized to review the CPST rates of cable systems not subject to effective competition to ensure that rates charged are not unreasonable. If the Commission finds a rate to be unreasonable, it shall determine the correct rate and any refund liability.4 The Cable Television Consumer Protection and Competition Act of 1992 (" 1992 Cable Act")5 requires the Commission to review CPST rates upon the filing of a valid complaint by a subscriber or local franchise authority ("LF A"). The Telecommunications Act of 1996 (" 1996 Act")6 and our rules implementing the new legislation ("Interim See In the Matter of Jones Intercable, Inc., 10 FCC Red 7259 (1995). 2 Id at n. 1. Communications Act, Section 623(c), as amended, 47 U.S.C. §543(c) (1996). 4 See Section 76.957 of the Commission's Rules, 47 C.F.R. §76.957. 5 Pub. L. No. 102-385, 106 Stat. 1460 (1992). 6 Pub. L. No. 104-104, 110 Stat. 56 (1996). 10626 Federal Communications Commission DA 99-1344 Rules"),7 require that, beginning February 8, 1996, complaints against CPST rates be filed with the Commission by an LF A that has received more than one subscriber complaint. 8 3. To justify rates for the period beginning May 15, 1994, operators must use the FCC Form 1200 series.9 Operators are permitted to make changes to their rates on a quarterly basis using FCC Form 1210. 1° Cable operators attempting to justify their rates through a cost of service showing must complete and file FCC Form 1220. 11 In reviewing an operator's FCC Form 1220 cost of service showing, we evaluate the operator's rate base and expense elements to determine whether the operator should be permitted to recover those items. Where a certain rate base or expense element is not justified under our rules, such cost is disallowed in whole or in part. 12 Where reported costs are disallowed, we make appropriate adjustments. 4. Upon review of Operator's FCC Form 1220, we find Operator's actual CPST rates of $8.29, effective May 15, 1994, and $9.79, effective January 1, 1995, to be reasonable. 13 Upon review of Operator's FCC Form 1210, covering the period from January 1, 1995 through December 31, 1995, we find Operator's actual CPST rate of $11.29, effective February 1, 1996, to be reasonable. 5. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F .R. § 0 .3 21, that the CPS T rates, charged by Operator in the franchise area referenced above, effective May 15, 1994, ARE REASONABLE. 7 See Implementation of Cable Act Reform Provisions of the Telecommunications Act of 1996, 11 FCC Red 5937 (1996). 8 See Communications Act, Section 623(c), as amended, 47 U.S.C. §543(c) (1996). 9 See Section 76.922 of the Commission's Rules, 47 C.F.R. §76.922. JO Id. 11 See Section 76.922(1) of the Commission's Rules, 47 C.F.R. §76.922(1). See also, Second Report and Order, First Order on Reconsideration, and Further Notice of Proposed Rulemaking, MM Docket No. 93-215 and CS Docket No. 94-28, FCC 95-502, 11 FCC Red 2220 (1996) ("Final Cost Order"). 12 The Commission made clear that the fact that an operator has incurred costs does not necessarily establish its right to recover those costs from subscribers. See Implementation of Sections of the Cable Television Consumer Protection and Competition Act of 1992: Rate Regulation, MM Docket No. 92-266, Report and Order and Further Notice of Proposed Rulemaking, 8 FCC Red 5631, 5794 at n. 619 (1993) ("Rate Order"). 13 This finding is based solely on the representations of Operator. Should information come to our attention that these representations were materially inaccurate, we reserve the right to take appropriate action. This Order is not to be construed as a finding that we have accepted as correct any specific entry, explanation or argument made by any party to this proceeding not specifically addressed herein. 10627 Federal Communications Commission DA 99-1344 6. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. Section 0.321, that the complaints referenced herein against the CPST rates charged by Operator in the community set forth above, ARE DENIED. FEDERAL COMMUNICATIONS COMMISSION Patrick A. Boateng, Acting Chief Financial Analysis and Compliance Division Cable Services Bureau 10628 Construction Permits to Be Auctioned: Pursuant to the Broadcast First Report and Order,3 participation in this auction is limited to those applicants identified in the Closed Broadcast Auction Public Notice, as modified herein. Applicants will be potentially eligible to bid only on those construction permits for which they have filed an appropriate long form application (FCC Forms 301, 346 or 349).4 A list of each MX Group in Auction No. 25, along with its upfront payment and minimum opening bid, is included as Attachment A. The listing contained in Attachment A reflects changes made by the Bureaus as a result of comments received on the Closed Broadcast Auction Public Notice and from other actions announced herein. Auction Date: The auction will begin on September 28, 1999. The initial schedule for bidding will be announced by public notice at least one week before the start of the auction. Unless otherwise announced, bidding will be conducted each business day and will continue until bidding has stopped on all licenses. Auction Title: Auction No. 25 (Closed Broadcast Auction). Bidding Metltodology: Simultaneous multiple round bidding. Bidding will be permitted only from remote locations, either electronically (by computer) or telephonically. Pre-Auction Deadlines: • Free Auction Seminar ........ : .............. August 3, 1999 • Short Fonn Application (FCC Form 175) ........ August 20, 1999; 5:30 p.m. ET • Orders for Remote Bidding Software ........... August 20, 1999 • Upfront Payments (via wire transfer). . . . . ....... September 13, 1999; 6:00 p.m. ET • Mock Auction September 24, 1999 3 See Implementation of Section 3090) of the Communications Act -- Competitive Bidding for Commercial Broadcast and Instructional Television Fixed Service Licenses, First Report and Order, MM Docket No. 97-234, GC Docket No. 92-52 and GEN Docket No. 90-264, 13 FCC Red 15920 (1998) ("Broadcast First Report and Order") and Memorandum Opinion and Order, FCC 99-234, rel. April 20, 1999 ("Memorandum Opinion and Order on Reconsideration"). In these items, the Commission adopted service and competitive bidding rules for mass media services, including standard broadcast (AM), frequency modulation (FM) and full service commercial television (TV). Also adopted were rules for the secondary services of low power television (LPTV), FM translator and television translator. 4 See Broadcast First Report and Order, 13 FCC Red at 15950, 15958-15960, ,~ 81, 105-109. See also Closed Broadcast Auction Public Notice at 2. 10633 Telephone Contacts: • FCC National Call Center (888) CALL-FCC ((888) 225-5322) or (717) 338-2888 (direct dial) For general auction information and seminar registration, press option #2 at the prompt. Hours of service: 8 a.m. -5:30 p.m. ET, Monday-Friday. • FCC Technical Support Hotline .......... (202) 414-1250 (voice), (202) 414-1255 (text telephone (TTY)) Hours of service: 8 a.m. - 6 p.m. ET, Monday - Friday. List of Attachments: Attachment A: Attachment B: Attachment C: Attachment D: Attachment E: Attachment F: Attachment G: Attachment H: Summary of Construction Permits to be Auctioned, Upfront Payments, and Minimum Opening Bids Guidelines for Completion of FCC Form 175 and Exhibits Auction-Specific Instructions for FCC Remittance Advice (FCC Form 159) Electronic Filing and Review of FCC Form 175 Accessing the FCC Network Using Windows 95/98 FCC Remote Bidding Software Order Form Summary Listing of Documents from the Commission and the Wireless Telecommunications Bureau Addressing the Application of the Anti-Collusion Rules Auction Seminar Registration Form Background: All spectrum to be auctioned is the subject of pending, mutually exclusive applications for construction permits for the AM, FM, TV, LPTV, and FM and television translator services, for which the Commission has not approved a settlement agreement that obviates the need for an auction. This includes mutually exclusive applications for full service FM, AM and television stations that were subject to the comparative freeze,5 instituted after the decision of the U.S. Court of Appeals for the District of Columbia in Bechtel v. FCC.6 The auction will also include pending mutually exclusive applications for LPTV, FM translator and television translator, as well as certain mutually exclusive LPTV and television translator DTV displacement relief applications. 7 Pursuant to the Broadcast First Report and Order, 5 Public Notice, FCC Freezes Comparative Hearings, 9 FCC Red 1055 (1994), modified, 9 FCC Red 6680 p 994),.further modified, I 0 FCC Red 12182 (1995). · Bechtel v. FCC, IO F.3d 875 (D.C. Cir. 1993). 7 See Public Notice, Low Power Television and Television Translators: Mutually Exclusive Displacement Applications, Mimeo No. 85299 (rel. Sept. 2, 1998); see also Public Notice, Commission Postpones Initial Date/or Filing TV Translator and Low Power TV Applications for Displacement Channels, Mimeo No. 82914 (rel. April 16. 1998). 10634 participation in the auction will be limited to those applicants identified in this Public Notice and applicants will be potentially eligible to bid on only those construction permits for which they filed an appropriate long-form application (FCC Forms 301, 346 or 349).8 Also pursuant to the Broadcast First Report and Order, the Bureaus will dismiss the previously-filed long-form application of any pending applicant failing to timely file a short-form application to participate in the Closed Broadcast Auction. 9 Due Diligence: Potential bidders are solely responsible for investigating and evaluating all technical and marketplace factors that may have a bearing on the value of the facilities on which they intend to bid. The FCC makes no representations or warranties about the use of this spectrum for particular services. Applicants should be aware that an FCC auction represents an opportunity to become a FCC permittee in these services, subject to certain conditions and regulations. An FCC auction does not constitute an endorsement by the FCC of any particular services, technologies or products, nor does an FCC construction permit or license constitute a guarantee of business success. Applicants should perform their individual due diligence before proceeding as they would with any new business venture. Participation: Those wishing to participate in the auction must: • Submit a short form application (FCC Form 175) by 5:30 p.m. Eastern Time, August 20, 1999. • Submit a sufficient upfront payment and an FCC Remittance Advice Form (FCC Form 159) by 6:00 p.m. Eastern Time, September 13, 1999. • Comply with all provisions outlined in this Public Notice and applicable rules of the Commission. Prolzibition of Collusion: To ensure the competitiveness and integrity of the auction process, the Commission's Rules prohibit competing applicants from communicating with each other during the auction about bids, bidding strategies, or settlements. In Auction No. 25, for example, the rule applies to all applicants within a MX Group. This prohibition becomes effective at the short-form application deadline, and ends on the post-auction down payment due date. Bidders . competing for the same construction permit(s) are encouraged not to use the same individual as an authorized bidder. 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. Also, ifthe authorized bidders are different individuals employed by the same organization (e.g., law firm or technical consulting firm), a violation could similarly oc~ur. At a minimum, in such a case, applicants should certify that precautionary steps have been taken to prevent communication between authorized bidders and that applicants and their bidding agents will comply with the anti-collusion rule. 10 The Bureaus, however, caution that merely 8 9 See Broadcast First Report and Order at 15950; 15958-15960, ~~ 81, I 05-109. Id at 15950 ~ 82. ' 0 See, e.g., "Wireless Telecommunications Bureau Responds to Questions About the Local Multipoint Distribution Service Auction," Public Notice, 13 FCC Red 341 (1998); Application of Nevada Wireless for a 10635 filing a certifying statement as part of an application will not outweigh specific evidence that coIIusive behavior has occurred nor will it preclude the initiation of an investigation when warranted. 11 However, applicants may enter into bidding agreements before filing their FCC Form 175 short-form applications, as long as they disdose the existence of the agreement(s) in their Form 175 short-form applications. 12 By electronically submitting their FCC Form 175 short-form applications, applicants are certifying their compliance with Sections 1.2105(c) and 73.5002. In addition, Section 1.65 of the Commission's Rules requires an applicantto maintain the accuracy and completeness of information furnished in its pending application and to notify the Commission, as promptly as possible and in any event within 30 days, of any substantial change that may be of decisional significance to that application. 13 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 are therefore required to make such notification to the Commission immediately upon discovery. Bidder Information Package: Given the closed nature of Auction No. 25 and the fact that the pool of potential bidders is limited to those that had previously filed long-form applications, no Bidder Information Package will be provided. All information necessary to participate in the Closed Broadcast Auction is contained in this Public Notice, the Closed Broadcast Auction Public Notice, the Broadcast First Report and Order, the Memorandum Opinion and Order on Reconsideration and the Commission's rules. Further, since the notice and comment rulemaking proceeding looking toward implementation of this auction was initiated nearly two years ago and since the applicants themselves have had their long-form applications on file for an extensive period of time, there is no need for a Bidder Information Package. Applicants may access updated information about Auction No. 25 at the following address on WTB's web site: http://www.fcc.gov/wtb/auctions/auc25/auc25.html Applicants are strongly encouraged to check this site regularly for updated complete information regarding Auction No. 25. Future Releases: Further information regarding sequencing and length of bidding rounds and other procedural issues will be released in a future public notice. Relevant Authority: Prospective bidders must familiarize themselves thoroughly with the Commission's Rules relating to broadcast auctions, contained in Title 47, Part 73 of the Code of Federal Regulations. Prospective bidders must also be thoroughly familiar with the procedures, 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 Red 11973, l l 9771 I l (1998) ("Nevada Wireless"). II 12 13 See Nevada Wireless, supra note 9 at 11978, , 13. See 47 C.F.R. § l.2105(c). See Id § 1.65. 10636 terms and conditions contained in this Public Notice, the Closed Broadcast Auction Public Notice, the Broadcast First Report and Order and the Memorandum Opinion and Order on Reconsideration. Potential bidders must also familiarize themselves with Part 1, Subpart Q of the Commission's Rules concerning Competitive Bidding Proceedings. 14 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 its public notices at any time, and will issue public notices to convey any new or supplemental information to bidders. It is the responsibility of all prospective bidders to rem~n current with all Commission Rules and with all public notices pertaining to this auction. Copies of most Commission documents, including public notices, can be retrieved from the FCC Internet node via anonymousftp@ftp.fee.gov or the FCC World Wide Web site at http://www.fcc.gov/wtb/auctions. Additionally, documents may be obtained for a fee by calling the Commission's copy contractor, International Transcription Service, Inc. (ITS), at (202) 314- 3070. When ordering documents from ITS, please provide the appropriate FCC number (e.g., FCC 98-194 for the Broadcast First Report and Order and FCC 99-74 for the Memorandum Opinion and Order on Reconsideration). Bidder Alerts: All applicants must certify on their FCC Form 175 applications under penalty of perjury that they are legally, technically, financially and otherwise qualified to hold a license, and not in default on any payment for Commission construction permits or licenses (including down payments) or delinquent on any non-tax debt owed to any Federal agency. Applicants should be aware that by filing their FCC Form 175 applications, they are certifying that they have long-form applications on file and that there has been no change of control of their long-form applications that would render them ineligible to participate in the auction under 47 U.S.C. §309(1) or any applicable Commission rule. 15 Prospective bidders are reminded that submission of a false certification to the Commission is a serious matter that may result in severe penalties, including monetary forfeitures, construction permit or license revocations, exclusion from participation in future auctions, and/or criminal prosecution. Although applicants have had an extensive opportunity to conduct due diligence due to the length of time ensuing since the filing of their long-form applications, the following reminder is provided: As is the case with many business investment opportunities, some .unscrupulous entrepreneurs may attempt to use the broadcast spectrum to deceive and defraud unsuspecting investors. Common warning signals of fraud include the following: 14 IS • The first contact is a "cold call" from a telemarketer, or is made in response to an inquiry prompted by a radio or television infomercial. See Part I, Subpart Q of Title 47 of the Code ofFederal Regulations. See Broadcast First Report and Order at 15942 , 57. 10637 • The offering materials used to invest in the venture appear to be targeted at IRA funds, for example by including all documents and papers needed for the transfer of funds maintained in IRA accounts. • The amount of the minimum investment is less than $25,000. • The sales representative makes verbal representations that: (a) the Internal Revenue Service ("IRS"), Federal Trade Commission ("FTC"), Securities and · Exchange Commission ("SEC"}, FCC, or other government agency has approved the investment; (b) the investment is not subject to state or federal securities laws; or (c) the investment will yield unrealistically high short-term profits. In addition, the offering materials often include copies of actual FCC releases, or quotes from FCC personnel, giving the appearance of FCC knowledge or approval of the solicitation. Information about deceptive telemarketing investment schemes is available from the FTC at (202) 326-2222 and from the SEC at (202) 942-7040. Complaints about specific deceptive telemarketing investment schemes should be directed to the FTC, the SEC, or the National Fraud Information Center at (800) 876-7060. Consumers who have concerns about specific proposals may also call the FCC National Call Center at (888) CALL-FCC ((888) 225-5322). NATIONAL ENVIRONMENTAL POLICY ACT (NEPA) REQUIREMENTS Licensees must comply with the Commission's rules regarding the National Environmental Policy Act (NEPA). The constructi~n of a broadcast antenna facility is a federal action and licensees must comply with the Commission's NEPA rules for each such facility. See 47 C.F.R. §§ 1.1305-1.1319. The Commission's NEPA rules require that, among other things, licensees consult with expert agencies having NEPA responsibilities, including the U.S. Fish and Wildlife Service, the State Historic Preservation Office, the Army Corp of Engineers and the Federal Emergency Management Agency (through the local authority with jurisdiction over floodplains). Licensees must prepare environmental assessments for broadcast facilities that may have a significant impact in or on wilderness areas, wildlife preserves, threatened or endangered species or designated critical habitats, historical or archaeologic sites, Indian religious sites, floodplains, and surface features. Licensees must also prepare environmental assessments for broadcast facilities that include high intensity white lights in residential neighborhoods or excessive radiofrequency emission. 10638 2. ELIGIBILITY FOR NEW ENTRANT BIDDil~G CREDIT A. General Eligibility Criteria For the Closed Broadcast Auction the Commission adopted the New Entrant Bidding Credit to promote and facilitate the diversification of ownership in the mass media. (1) Determination of Eligibility for Bidding Credit The interests of the bidder, and of any individuals or entities with an attributable interest in the bidder in other media of mass communications shall be considered when determining a bidder's eligibility for the New Entrant Bidding Credit. The bidder's attributable interests shall be determined as of the short form (FCC Form 175) filing deadline-August 20, 1999. Bidders intending to divest a media interest or make any other ownership changes, such as resignation of positional interests, in order to avoid attribution for purposes of qualifying for the New Entrant Bidding Credit must have consummated such divestment transactions or have completed such ownership changes by no later than the short-form filing deadline - August 20, 1999.16 For purposes of determining which entities qualify for a New Entrant Bidding Credit, the following information should be considered: the interests of the bidder, and of any individuals or entities with an attributable interest in the bidder, in other media of mass communications at the time of the short-form application filing deadline. These interest should be considered to the extent that they are considered attributable under the broadcast multiple ownership rules. Further, any bidder asserting new entrant status must have de facto as well as de jure control of the entity claiming the bidding credit. Typically, de jure control is evidenced by ownership of at least 50.1 percent of an entity's voting stock or equivalent level of interest in cases where the bidder is not a corporate entity. De facto control is determined on a case-by-case basis.17 Under traditional broadcast attribution rules, those entities or individuals with an attributable interest in a bidder include: all officers and directors of a corporate bidder; any owner of 5% or more of the voting stock of a corporate bidder; all partners and limited partners of a 16 The fact that, on August 20, 1999, a bidder has a pending or granted application to assign or transfer control of a media interest shall not be sufficient to avoid attribution. Bidders must have consummated the transaction by August 20, 1999, to avoid attribution. 17 For further guidance on the issue of control, see the Commission's affiliation rule at 47 C.F.R. § l.21 IO(b)(4). See also El/is Thompson Corp., 76 Rad. Reg. 2d (P & F) 1125, 1127-28 (1994), in which the Commission identified the following factors used to detennine control of a business: (1) use of facilities and equipment; (2) control of day-to-day operations; (3) control of policy decisions; (4) personnel responsibilities; (S) control of financial obligations; and (6) receipt of monies and profits; Intermountain Microwave, 24 Rad. Reg. (P & F) 983 (1963), and Application of Baker Creek Communications, LP, For Authority to Construct and Operate Local Multipoint Distribution Services In Multiple Basic Trading Areas, Memorandum Opinion and Order, DA 98- 1921 (released September 23, 1998). 10639 partnership bidder, unless the limited partners are sufficiently insulated from exercising management and control of the partnership; and all members of a limited liability company, unless sufficiently insulated. 18 In cases where a bidder is an individual and his or her spouse or other close family member holds interests in other media, such interests are not automatically attributable to the bidder, however bidders are reminded that the Commission decides attribution issues in this context based on certain factors that it has traditionally considered to be relevant. 19 Bidders are also reminded that, in the Memorandum Opinion and Order on Reconsideration, the Commission determined to consider, in a further order, whether to attribute the mass media interests of any individual or entity who holds a significant equity and/or debt interest in a broadcast auction bidder claiming New Entrant status, even if such an interest is nonvoting.20 Specifically, the Memorandum Opinion and Order on Reconsideration stated that this further order would consider the appropriateness of attributing the mass media interests (if any) held by substantial investors in a bidder claiming a credit as a New Entrant and the threshold at which a nonvoting equity and/or debt interest in a New Entrant should be attributable. 21 While the Commission has not yet released its further order resolving these issues, it stated in the Memorandum Opinion and Order on Reconsideration that the further order would be released "expeditiously" and its release would not delay the commencement of broadcast service auctions. 22 Therefore, bidders should be aware of these outstanding issues when considering their qualifications for the New Entrant Bidding Credit. The eligibility standards will be governed by the rule in effect on the short-form filing for the for the New·Entrant Bidding Credit. (2) Consortia and Joint Bidding Arrangements A party holding a non-controlling, attributa}?le interest in one applicant will be permitted to acquire an ownership interest, form a consortium with, or enter into a joint bidding arrangement with other applicants for construction permits in the same MX Group provided that I) the attributable interest holder certify that it has not and will not communicate with any party concerning the bids or bidding strategies of more than one of the applicants in which it holds an attributable interest, has formed a consortium, or has entered into a joint bidding arrangement; and 2) the arrangements do not result in a change in control of any of the applicants.23 While the anti-collusion rule doesn't prohibit non-auction related business negotiations among auction applicants, bidders are reminded that certain discussions or exchanges could broach on impermissible subject matters because they may convey pricing information and bidding strategies. Such subject areas include, but are not limited to, issues such as management, sales, local marketing agreements, rebroadcast agreements and other transactional arrangements. 24 18 19 20 21 22 23 24 See 47 C.F.R. § 73.3555 Note 2. See Clarification o/Commission Policies Regarding Spousal Attribution, 7 FCC Red 1920 {1992). Memorandum Opinion and Order on Reconsideration at~ 74. Id. Id See 47 C.F.R. § 1.210S(c)(4)(i) & (ii). See also Broadcast First Report and Order at 15982 ~ 158. Id at 159. 10640 (3) Application Showing Applicants should note that they will be required to file supporting documentation as Exhibits A and C to their FCC Form 175 short-form applications to establish that they satisfy the eligibility requirements to qualify for a New Entrant Bidding Credit.25 Ownership information must also be provided in the Closed Broadcast Auction in order for us to verify eligibility to participate in the auction. Accordingly, whether or not a New Entrant Bidding Credit is being sought, all applicants must provide the information set forth in this section. Specifically, for the Closed Broadcast Auction, applicants (or consortia of such applicants) will be required to file (in Exhibit A to their FCC Form 175 short-form application), a full and complete statement of the ownership of the bidding entity, to include all attributable interest holders. The information must comply, in all material respects, with the ownership information appearing on the applicant's previously filed long-form application. If the information reflects that there has been a change of control, the related long-form application will be dismissed and the applicant will be ineligible to participate in the auction. 26 The applicant must provide the ownership information for itself and its attributable interest-holders, as defined by Section 73.3555 and Note 2 of that section, including: all officers and directors of a corporate bidder; any owner of 5% or more of the voting stock of a corporate bidder; all partners and limited partners of a partnership bidder, unless the limited partners are sufficiently insulated from the management or operation of the partnership; and all members of a limited liability company, except those sufficiently insulated from its management or operation. Bidders must certify (in Exhibit A) compliance with the Commission's policies relating to media interests of immediate family members. In addition, in those cases where a New Entrant Bidding Credit is being sought, a certification under penalty of perjury must be set forth in Exhibit C attesting to the eligibility of the bidder for the level of Credit claimed. If the applicant is applying to bid as a consortium of applicants eligible for the New Entrant Bidding Credit, this information must be provided for each consortium member. In cases where a joint bidding arrangement is contemplated, an Exhibit B must be filed. Applicants owned by minorities or women, as defined in 47 C.F.R. § l.2110(b)(2) may attach an exhibit (Exhibit D) regarding this statt1$. This information assists the Commission in monitoring the participation of "designated entities" in its auctions. Applicants wishing to submit additional information may do so in Exhibit E (Miscellaneous Information). 25 26 See 47 C.F.R. § 1.2105. Broadcast First Report and Order, 13 FCC Red at 159421f 57. 10641 B. Bidding Credits Applicants that qualify for the New Entrant Bidding Credit, as set forth in 47 C.F.R. § 73.5007,27 are eligible for a bidding credit that represents the amount by which a bidder's winning bids are discounted. The size of a New Entrant Bidding Credit depends on the number of ownership interests in other media of mass communications that are attributable to the bidder-entity and its attributable interest-holders: • A 35 percent bidding credit will be given to a winning bidder if it, and/or any individual or entity with an attributable interest in the winning bidder has no attributable interest in any other media of mass communications, as defined in 47 C.F .R. § 73.5008; and, • A 25 percent bidding credit will be given to a winning bidder if it, and/or any individual or entity with an attributable interest in the winning bidder has an attributable interests in no more than three media of mass communications, as defined in 47 C.F.R. § 73.5008; and, • No bidding credit will be given if any of the commonly owned mass media facilities would serve the same area as the proposed broadcast or secondary broadcast station, as defined in 47 C.F.R. § 73.5007, or if the winning bidder, and/or any individual or entity with an attributable interest in the winning bidder, have attributable interests in more than three mass media facilities. Attributable interests held by a winning bidder in existing low power television, television translator or FM translator facilities will not be counted among the bidders' other mass media facilities. Bidding credits are not cumulative: qualifying applicants receive either the 25 percent or the 3 5 percent bidding credit, but not both. Attributable interests are defined in 4 7 C.F .R. § 73.3555 and Note 2 of that section. Closed Broadcast Auction bidders should note that unjust enrichment provisions apply to winning bidders that use bidding credits and subsequently assign or transfer control of their licenses to an entity not qualifying for the same level of bidding credit.28 Finally, Closed Broadcast Auction bidders should also note that there are no installment payment plans in the Closed Broadcast Auction. 27 § 73.5007 was most recently revised pursuant to the Memorandum Opinion and Order on Reconsideration. The revised version of the rule, applicable to the Closed Broadcast Auction, became effective on July 6, 1999. 28 See 47 C.F.R. § 73.5007(c), as revised. 10642 3. PRE-AUCTION PROCEDURES A. Short-Form Application (FCC Form 175)-Due August 20, 1999, 5:30 p.m. ET In order to be eligible to bid in this auction, applicants must first electronically submit an FCC Form I 75 application. This application must be received at the Commission by 5:30 p.m. ET on August 20, 1999. Late applications will not be accepted. There is no application fee required when electronically filing an FCC Form 175. However, to purchase bidding eligibility, an applicant must submit an upfront payment. See Section 3.C, infra. (1) Electronic Filing As of January 1, 1999, applications to participate in FCC auctions must be filed electronically, unless it is not operationally feasible.29 Applicants will be permitted to file their FCC Form 175 applications in paper form only in the event the FCC experiences technical difficulties with its electronic systems. 30 In such an event, the FCC will announce the procedure for submitting paper applications. For Auction No. 25, applicants may file applications electronically beginning August 3, 1999. The system will generally be open for filing on a 24-hour basis. The Form 175 filing window will remain open until 5:30 p.m. ET on August 20, 1999. Applicants are strongly encouraged to file early, and applicants are responsible for allowing adequate time for filing their applications. Applicants may update or amend their electronic applications multiple times until the filing deadline on August 20, 1999. Information about the electronic filing of the FCC Form 175 application is included as Attachment D to this Public Notice. Technical support is available at (202) 414-1250 (voice) or (202) 414-1255 (text telephone (TTY)); the hours of service are 8 a.m. - 6 p.m. ET, Monday-Friday. (2) Completion of the FCC Form 175 Applicants should carefully review 4 7 C.F .R. § § 1.2105 and 73 .5002 and must complete all items on the FCC Form 175. Instructions for completing the FCC Form 175 are in Attachment B of this Public Notice. Applicants should not consider their form submitted to the FCC until they press the "Submit Form 175" button on the "Submit" page and receive confirmation from the filing system that the form has been received by the Commission. 29 30 See Part l Third Report and Order, 13 FCC Red at 410-11, ,, 59-62; 47 C.F.R. § l.2105(a). id at 412, 1162. 10643 (3) Electronic Review of FCC Form 175 The FCC Form 175 review software may be used to review and print applicants' FCC Form 175 applications. Applicants may review their own completed FCC Form 175. Applicants may also view other applicants' completed FCC Form l 75s after the filing deadline has passed and the FCC has issued a public notice explaining the status of the applications. For this reason, it is important that applicants do not include their Taxpayer Identification Numbers (TINs) on any Exhibits to their FCC Form 175 applications. There are no fees for accessing this system or for submitting an FCC Form 175. B. Application Processing and Minor Corrections After the deadline for filing the FCC Form 175 applications has passed, the FCC will process all timely submitted short-form applications to determine which are mutually exclusive and which are acceptable for filing, and will subsequently issue a public notice identifying: (1) those short-form applications which are mutually exclusive and are acceptable for filing (including FCC file numbers and the construction permits for which they applied); (2) those applications rejected; and (3) those short-form applications that have minor defects that may be corrected, and the deadline for filing such corrected applications. Where no mutually exclusive Form 175 applications are filed by August 20, 1999, the related long-form application (FCC Forms 30 I, 346 and 349) will be removed from the auction and processed, and, if acceptable, will be granted. As described more fully in the Commission's Rules, after the August 20, 1999, short­ form filing deadline, applicants may make only minor non-technical corrections to their FCC Form 175 applications. Applicants will not be permitted to make major modifications to their applications (e.g., change their construction permit selections or proposed service areas, change the certifying official or change control of the applicant or change bidding credits). See 47 C.F.R. § 1.2105. 10644 C. Upfront Payments -Due September 13, 1999 In order to be eligible to bid in the auction, applicants must submit an upfront payment accompanied by an FCC Remittance Advice Form (FCC Form 159). Applicants will have access to filling out an electronic version of the FCC Form 159 (August 1998 version) after completing the electronic FCC Form 175; however, the FCC Remittance Advice Form (FCC Form 159) is to be submitted by facsimile transmission to Mellon Bank in accordance with the instructions below. Earlier versions of this form will not be accepted. All upfront payments must be received at Mellon Bank in Pittsburgh, Pennsylvania, by 6:00 p.m. ET on September 13, 1999. · Please note that: • All payments must be made in U.S. dollars. • All payments must be made by wire transfer. • Upfront payments for Auction No. 25 go to a lockbox number different from the ones used in previous FCC auctions, and different from the lockbox number to be used for post-auction payments. • Failure to deliver the upfront payment by the September 13, 1999 deadline will result in no bidding eligibility being accorded the applicant. (1) Making Auction Payments by Wire Transfer Wire transfer payments must be received by 6:00 p.m. ET on September 13, 1999. To avoid untimely payments, applicants should discuss arrangements (including bank closing schedules) with their banker several days before they plan to make the wire transfer, and allow sufficient time for the transfer to be initiated and completed before the deadline. Applicants will need the following information: ABA Routing Number: 043000261 Receiving Bank: Mellon Pittsburgh BNF: FCC/ 910-0171 OBI Field: (Skip one space between each information item) "AUCTIONPA Y" TAXPAYER IDENTIFICATION NO. (same as FCC Form 159, block 26) PAYMENT TYPE CODE (enter "A25U") FCC CODE 1 (same as FCC Form 159, block 23A: "25") PAYER NAME (same as FCC Form 159, block 2) LOCK.BOX NO. 358430 10645 NOTE: The BNF and Lockbox number are specific to the upfront payments for this auction; do not use BNF or Lockbox numbers from previous auctions. Applicants must fax a completed FCC Form 159 to Mellon Bank at (412) 236-5702 at least one hour before placing the order for the wire transfer (but on the same business day). On the cover sheet of the fax, write "Wire Transfer- Auction Payment for Auction Event No. 25." Bidders may confirm receipt of their upfront payment at Mellon Bank by contacting their sending financial institution. (2) FCC Form 159 Each upfront payment must be accompanied by a completed FCC Remittance Advice Form (FCC Form 159). Proper completion of FCC Form 159 is critical to ensuring correct credit of upfront payments. Detailed instructions for completion of FCC Form 159 are included in this Public Notice as Attachment C. (3) Amount of Upfront Payment In the Broadcast First Report and Order the Commission delegated to the Bureaus the authority and discretion to determine an appropriate upfront payment for each construction permit being auctioned.31 In the Closed Broadcast Auction Public Notice, the Bureaus proposed certain upfront payments that were set forth in Attachment A to that Notice. We received comments on this proposal from a number of parties, including the National Translator Association ("NTA") and George W. Kimble ("Kimble"). NTA states that any organization which is exempt from annual regulatory fees should be exempted from the requirement of filing upfront payments.32 However, Section 73.5003 of the Commission's rules requires that in order to be eligible to bid, every bidder in every broadcast service shall submit an upfront payment prior to the commencement of bidding. Further, the Commission's rules have mandated this for every prior auction as a means of increasing auction efficiency and discouraging insincere bidders. 33 Therefore, we shall not adopt NT A's suggestion and all bidders will be required to submit an upfront payment. Kimble states that he believes the following four corollaries are correct statements of auction procedures and asks that we clarify this to be the case: I) that an applicant that submits an upfront payment is entitled to a refund if it subsequently does not bid at the auction; 2) that 31 See Amendment of Part I of the Commission's Rules - Competitive Bidding Proceeding, WT Docket No. 97-82, Order, Memorandum Opinion and Order and Notice of Proposed Rule Making, 12 FCC Red. 5686, 5697- 5698,, 16 (1997). See also Broadcast First Report and Order at 15967, ,, 127-128. 32 Comments ofNTA at 3. 33 47 C.F.R. § 1.2106 10646 the application of a party that does not submit an upfront payment will automatically be dismissed; 3) that if only one party submits an upfront payment, it would be treated as a "singleton" applicant and would not be required to bid at the auction (and such an applicant would be entitled to a refund of his upfront payment); and 4) that if more than one party submits an upfront payment but no party bids at the auction, the parties are entitled to a refund. Kimble does not state in his hypothetical cases, whether the application he is referring to in each case is a long-form or a short-form application.34 The Commission requires the submission of short-form applications by pending applicants and will dismiss the previously-filed long-form application of any pending applicant that fails to timely file a short-form application to participate in the auction.35 With this in mind, we consider the hypotheticals assuming that Kimble's references are to a short-form application. If the Commission were to receive only one short-form application and thus no mutual exclusivity were to exist for auction purposes, the auction for any such construction permit would cancel.36 However, should two or more short-forms be tendered within an MX Group, mutual exclusivity would exist for auction purposes. Accordingly, in Hypothetical l, whether or not there is more than one short-form application filed in an MX Group, an applicant that does not bid or have other outstanding obligations to the Commission such as winning bids or withdrawal payments due in other markets, would be entitled to a refund of its upfront payment. As to Hypothetical 2, if an app!icant were to submit a short-form application but fail to timely tender an upfront payment, it would retain its place in the MX Group but, having purchased no bidding eligibility, would not be eligible to bid. As to Hypothetical 3, assuming that two or more parties file short-form applications in their MX Group, but only one submits an upfront payment, mutual exclusivity would exist for auction purposes (since multiple short-form applications are tendered) and, in such case, the party making its upfront payment is not entitled to both a refund and the grant of a construction permit. In Hypothetical 3, while the sole applicant tendering the upfront payment is not required to bid, should it choose not to do so, its upfront payment would be returned but no construction permit would issue. Once mutual exclusivity exists for auction purposes (which occurs when more than one short-form application is filed) the Budget Act mandates that mutually exclusive construction permits be granted only by means of competitive. bidding. As to Hypothetical 4, involving the multiple submission of upfront payments, but with no subsequent bidding activity, all parties are entitled to refunds unless withdrawal payment(s) or other collateral obligation(s) are owed to the Commission from other bidding activities. We therefore adopt our proposed upfront payment amounts for Auction No. 25, subject to reductions being made for certain MX Groups. See Section 4.B.(2), infra. In such cases, the minimum opening bids ·of those applicants are also being reduced. This will make the relationship of upfront payments to minimum opening bids commensurate with all other applicants. (In the Closed Broadcast Auction, minimum opening bids are set at the same level as 34 35 36 Comments of Kimble at l - 2. See Broadcast First Report and Order at 15950 ~ 82. Id. 10647 upfront payments, in all cases.) The upfront payment amount for each construction permit is listed in Attachment A. Applicants potentially eligible to participate in competitive bidding in more than one MX Group should note that upfront payments are not attributed to specific construction permits, but instead will be translated to bidding units to define a bidder's maximum bidding eligibility. For Auction No. 25, the amount of the upfront payment will be translated into bidding units on a one­ to-one basis, e.g., a $25,000 upfront payment provides the bidder with 25,000 bidding units. The total upfront payment defines the maximum amount of bidding units on which the applicant will be permitted to bid (including standing high bids) in any single round of bidding. ·Thus, an applicant does not have to make an upfront payment to cover all construction permits which the applicant has selected on FCC Form 175, but rather to cover the maximum number of bidding units that are associated with construction permits on which the bidder wishes to place bids and ·hold high bids on at any given time. In this regard, bidders are reminded that failure to submit an upfront payment of sufficient size to provide bidding eligibility for every MX Group in which an applicant has a pending long-form application will limit the bidding eligibility of that applicant. To be able to place a bid on a construction permit, in addition to having specified that permit on the FCC Form 175, a bidder must have an eligibility level that meets or exceeds the number of bidding units assigned to that li'cense. At a minimum, an applicant's total upfront payment must be enough to establish eligibility to bid on at least one of the construction permits applied for on the FCC Form 175, or else the applicantwill not be eligible to participate in the auction. In calculating the upfront payment amount, an applicant should determine the maximum number of bidding units it may wish to bid on in any single round, and submit an upfront payment covering that number of bidding units. Bidders should check their calculations carefully as there is no provision for increasing a bidder's maximum eligibility after the upfront payment deadline. NOTE: An applicant potentially eligible to bid in more than one MX Group may, on its FCC Form 175, indicate an intent to bid on every construction permit for which an underlying long-form has been filed, but its actual bidding in any round will be limited by the bidding units reflected in its upfront payment. (4) Applicant's Wire Transferlnformation for Purposes of Refunds Because experience with prior auctions has shown that in most cases wire transfers provide quicker and more efficient refunds than paper checks, the Commission will use wire transfers for all Auction No. 25 refunds. To avoid delays in processing refunds, applicants should include wire transfer instructions with any refund request they file; they may also 10648 provide this information in advance by faxing it to the FCC Billings and Collections Branch, ATTN:Michelle Bennett or Gail Glasser at (202) 418-2843. Please include the following information: Name of Bank ABANumber Account Number to Credit Correspondent Bank (if applicable) ABANumber Account Number Contact and Phone Number (Applicants should also note that implementation of the Debt Collection Improvement Act of 1996 requires the FCC to obtain an applicant's Taxpayer Identification Number (TIN) before it can disburse refunds.) Eligibility for refunds is discussed in Section 5.C., infra. D. Auction Registration Approximately ten days before the auction, the FCC will issue a public notice announcing all qualified bidders for Auction No. 25. Qualified bidders are those applicants whose FCC Form 175 applications have been accepted for filing and that have timely submitted upfront payments sufficient to make them eligible to bid on at least one of the construction permits for which a long-form application was previously accepted. All qualified bidders are automatically registered for the auction. Registration materials will be distributed prior to the auction by two separate overnight mailings, each containing part of the confidential identification codes required to place bids. These mailings will be sent only to the contact person at the applicant address listed in the FCC Form 175. Applicants that do not receive both registration mailings will not be able to submit bids. Therefore, any qualified applicant that has not received both mailings by noon on September 23, 1999 should contact the FCC National Call Center at (888) CALL-FCC ((888) 225-5322, press option #2 at the prompt). Receipt of both registration mailings is critical to participating in the auction and each applicant is responsible for ensuring ithas received all of the registration material. Qualified bidders should note that lost login codes, passwords or bidder identification numbers can be replaced only by appearing in person at the FCC Auction Headquarters located at 445 -12th Street, S.W., Washington, DC 20554. Only an authorized representative or certifying official, as designated on an applicant's FCC Form 175, may appear in person with two forms of identification (one of which must be 10649 a photo identification) in order to receive replacement codes. Bidders needing replacement codes must call technical support at 202-414-1250 prior to arriving at the FCC. E. Remote Electronic Bidding Software Qualified bidders that file or amend the FCC Form 175 electronically are strongly encouraged to bid electronically. Due to the fact that each of the potential bidders has already paid substantial fees to the Commission in connection with the filing of their long-form applications, the software packages required to participate in remote electronic bidding will be provided on request at no charge to the bidders in the Closed Broadcast Auction. These software packages must be ordered by August 20, 1999. (Auction software is tailored to a specific auction, so software from prior auctions will not work for Auction No. 25). A software order form is included in this Public Notice in Attachment F. F. Auction Seminar On August 3, 1999, the FCC will sponsor a free, informational seminar for the Closed Broadcast Auction at the Main Meeting Room on the first floor of the Headquarters Building of the Federal Communications Commission located at 445 - 12th Street, S.W., Washington, DC 20554. The seminar will provide attendees with information about pre-auction procedures, conduct of the auction, FCC remote biddihg software, and the Closed Broadcast Auction service· and auction rules. To register, refer to the registration materials included as Attachment H to this Public Notice. The registration form includes details about the time and location of the seminar. Registrations are accepted on a first-come, first-ser\red basis. G. Mock Auction All qualified bidders will be eligible to participate in a mock auction on September 24, 1999. The mock auction will enable applicants to become familiar with the electronic software prior to the auction. Free demonstration software will be available for use in the mock auction. Participation by all bidders is strongly recommended. Details will be announced by Public Notice. 10650 4. AUCTION EVENT The first round of the auction will begin on September 28, 1999. The initial round schedule will be announced in a Public Notice listing the qualified bidders, to be released approximately I 0 days before the start of the auction. A. Auction Structure (1) Simultaneous Multiple Round Auction In the Closed Broadcast Auction Public Notice, we proposed to award the construction permits in a single, simultaneous multiple round auction. 37 On this proposal, Community Broadcasters Association ("CBA") responds that auctions for LPTV displacement applications should be set up to run seriatim.38 CBA stresses the importance of the auction for displaced LPTV licensees and notes that this category of bidder consists of small operators who can't afford the time or staff to stay on-line indefinitely. However, contrary to CBA's expressed concerns, bidders in the Closed Broadcast Auction are not compelled by our procedures to stay online indefinitely. It normally takes no more than a few minutes for a typical bidder to place a bid electronically. Round results are then posted to the Internet at approximate set times following the close of each round. Additionally, round results will be made available by telephone. There is no need to stay on-line for extensive periods of time. Thus, only a periodic presence will be required during each round of the auction; first to place a bid; then later to check round results. We therefore conclude that the construction permits'in the Closed Broadcast Auction will be awarded through a single, simultaneous multiple round auction. Unless otherwise announced, bids will be accepted on all construction permits in each round of the auction. This approach, we believe, allows for a more efficient auction process and, in cases where bidders are eligible to participate in multiple markets, allows them to take advantage of any synergies that exist among construction permits. Due to the large number of potential bidders in this auction, we. may decide to partition the bidding period to allow bidding to occur on different groups of construction permits during different time intervals on some or all of the days that the auction is underway. This would alleviate any delays bidders might experience while trying to place bids. In this regard, we note that electronic bidding provides for a substantially enhanced simultaneous bidding capacity than does telephonic bidding, where the number of callers during peak bidding times may result in the formation of queues. For that reason, bidders are encouraged to utilize the electronic filing resources of the Commission to place their bids. 37 38 Closed Broadcast Auction Public Notice at 4 - 5. Comments of CBA at 2. 10651 (2) Maximum Eligibility and Activity Rules In the Closed Broadcast Auction Public Notice, we proposed that the amount of the upfront payment submitted by a bidder would determine the initial maximum eligibility (as measured in bidding units) for each bidder.39 We received comments from Fant Broadcasting Company ("Fant") on our proposed eligibility rule. Fant believes that the 100% eligibility rule is too high for a multiple market bidder and that this will force such bidders to either exercise a waiver or to bid.40 This will produce artificially low bid amounts for markets with smaller bidding units as bidders will shy away from them to maintain more eligibility. Fant states that we should require only 50% eligibility in stage one of the auction.41 First, we note that in the Closed Broadcast Auction, only a very small percentage of bidders are potentially eligible to bid on more than one market. For that reason, even if valid, we do not see the factors stated by Fant as having a significant impact on the conduct of the Closed Broadcast Auction. Further, no other commenter raises similar concerns and none of the reply comments express support for this position. Accordingly, we can see no reason to reduce our proposed activity requirement designed to increase efficiency. As t~ the 50% eligibility proposal, we note that there shall be no multiple stages in the Closed Broadcast Auction. Rather, a single stage auction is proposed.42 We adopt the maximum eligibility and activity rule proposal for the Closed Broadcast Auction. The amount of the upfront payment submitted by a bidder determines the initial maximum eligibility (in bidding units) for each bidder. Note again that upfront payments are not attributed to specific construction permits, but instead will be translated into bidding units to define a bidder's initial maximum eligibility. The total upfront payment defines the maximum number of bidding units on which the applicant will initially be permitted to bid. To ensure that the auction closes within a reasonable period of time, an activity rule requires bidders to bid actively throughout the auction, rather than wait until the end before participating. Bidders are required to be active on 100 percent of their maximum eligibility during each round of the auction. A bidder is considered active on a construction permit in the current round if it is either the high bidder at the end of the previous bidding round and does not withdraw the high bid in the current round, or if it submits an acceptable bid in the current round (see "Minimum Accepted Bids" in Section 4.B.(3), infra). A bidder's activity level in a round is the sum of the bidding units associated with construction permits on which the bidder is active. Required 39 40 Closed Broadcast Auction Public Notice at 6. Comments of Fant at 2 - 3. Id at 3. 41 42 SefC/osed Broadcast Auction Public Notice at 6. See also Supplement and Erratum to Public Notice DA 99- 940 Announcing Closed Broadcast Auctions Scheduled for September 28, 1999, Public Notice, DA 99-940 (released May 26, 1999). - 10652 minimum activity levels ensure that an auction will proceed expeditiously and efficiently. Because such procedures have proven successful in maintaining the pace of previous auctions. we adopt them for the Closed Broadcast Auction. (3) Activity Rule Waivers, Reducing Eligibility and Stopping Rules In the Closed Broadcast Auction Public Notice, we proposed that each bidder in the auction would be provided five activity rule waivers that may be used in any round during the course of the auction.43 We also proposed to employ a simultaneous stopping rule in Auction No. 25,44 meaning that all construction permits would remain open until the first round in which no new acceptable bids, proactive waivers or withdrawals were received. We sought comment on a modified version of this rule, in which the auction would close for all construction permits after the first round in which no bidder submits a proactive waiver, a withdrawal, or a new bid on any construction permit on which.it is not the standing high bidder.45 We further proposed to retain the discretion to keep the auction open, even if no new acceptable bids or proactive waivers are submitted and no previous high bids are withdrawn.46 Finally, we proposed to reserve the right to declare that the auction will end after a specified number of additional rounds ("special stopping rule"),47meaning that the Bureaus would accept bids in the final round(s) only for construction permits on which the high bid increased in at least one of the preceding specified number of rounds. We proposed to exercise this option only in circumstances such as where the auction is proceeding very slowly, where,there is minimal overall bidding activity, or where it appears likely that the auction will not close within a reasonable period oftime.48 We received comments on our proposals regarding activity rule waivers, eligibility reduction and the stopping rules from Nobco, Inc. ("Nobco"), Pappas Telecasting of the Midlands, Inc. ("Pappas") Biltmore Forest Broadcasting FM, Inc. ("Biltmore Forest"), Guam Radio Services, Inc. ("Guam") and NT A. Reply comments were filed by Snyder Hill Broadcasting, Inc. ("Snyder Hill") and KM Communications, Inc. ("KM"). Nobco wants no activity rule waivers as they believe it will slow down the process of the auction too much.49 However, activity rule waivers are designed to cover exigent circumstances over which a bidder may have no control, for example, technical problems with a computer, telephone disruptions, etc. They are not intended for strategic use and there is no evidence of their abuse in the auctions conducted to date. 43 44 45 46 47 48 49 Closed Broadcast Auction Public Notice at 8. Id. at 9. Id. Id. Id. at 10. Id. Comments of Nobco at I - 2. 10653 Pappas thinks it inadvisable for the Commission to provide for any reduction in eligibility for failure to maintain a 100 percent activity level.so It sees this as favoring a small percentage of multiple market bidders and believes that multiple market applicants should be required to maintain their eligibility in each market in every round.51 Snyder Hill replies in agreement that any multiple market applicant in the Closed Broadcast Auction should be required to maintain activity in every round in every market. s2 Pappas thinks that if they do not have this requirement, multiple market applicants will enjoy an advantage over the vast majority of applicants that are only potentially eligible to bid in a single market.s3 KM asserts that competitive bidding in each MX Group should close only when all bidders have exhausted their eligibility. It disagrees with the position that multiple market bidders should be held to a 100 percent activity level in all markets. 54 After consideration, we believe that the 100 percent activity requirement will not favor the multiple market bidder. It is important to the overall function of the auction process that all bidders retain the flexibility to voluntarily reduce their eligibility once they are no longer interested in a given market. Biltmore Forest argues that simultaneously auctioning all of the MX Groups delays the end of the auction for all applicants. It asserts that the close of the auction for one market should not depend on the market interest or activity in another market. Biltmore Forest suggests that a market (MX Group) should close out as activity ceases in that market. By way of reply, Snyder Hill agrees that the close of one market should not be dependent on another, seeing such a practice as affording unfair advantage to multiple market applicants. ss In this regard, we note that once all applicants in a MX Group (except, of course, the standing high bidder) have lost their eligibility following the automatic application of any remaining activity waivers, no other bidders in that MX Group will be able to bid. This effectively closes the bidding in that market while the rest of the auction continues. NT A believes that the proposed use of five activity waivers is "entirely sufficient. "s6 We agree. · Guam thinks that the Commission should be able to stop a competitive bidding contest if the only bids placed in a given round are those made by one or more standing high bidders that are merely topping their own pre-existing high bids, thereby artificially extending bidding activity.57 We view this comment as one supportive of our proposed modified stopping rule and we note that we already have the authority to take such action, should it become necessary to prevent any potential abuse of the auction process. 50 51 52 53 54 55 56 57 Comments of Pappas at 4 - 5. Id at 5. Reply Comments of Snyder Hill at 3. Comments of Pappas at 5. Reply Comments of KM at 5. Reply Comments of Snyder Hill at 3. Comments of NT A at 3. Comments of Guam at 8 - 9. 10654 Based upon our experience in previous auctions, we adopt our proposals and each bidder will be provided five activity rule waivers that may be used in any round during the course of the auction. Use of an activity rule waiver preserves the bidder's current bidding eligibility despite the bidder's activity in the current round being below the required minimum level. An activity rule waiver applies to an entire round of bidding and not to a particular construction permit. The FCC auction system assumes that bidders with insufficient activity would prefer to use an activity rule waiver (if available) rather than lose bidding eligibility. Therefore, the system will automatically apply a waiver (known as an 11automatic waiver") at the end of any round where a bidder's activity level is below the minimum required unless: (I) there are no activity rule waivers available; or (2) the bidder overrides the automatic application of a waiver by reducing eligibility, thereby meeting the minimum requirements. A bidder with insufficient activity that wants to reduce its bidding eligibility rather than use an activity rule waiver must affirmatively override the automatic waiver mechanism during the round by using the "reduce eligibility11 function in the software. In this case, the bidder's eligibility is permanently reduced to bring the bidder into compliance with the activity rules. Once eligibility has been reduced, a bidder will not be permitted to regain its lost bidding eligibility. A bidder may proactively use an activity rule waiver as a means to keep the auction open without placing a bid. If a bidder submits a proactive waiver (using the proactive waiver function in the bidding software) during a round in which no bids are submitted, the auction will remain open and the bidder's eligibility will be preserved. An automatic waiver invoked in a round in which there are no new valid bids or withdrawals will not keep the auction open. Barring extraordinary circumstances, bidding will remain open on all construction permits until bidding stops on every construction permit. Thus, the auction will close for all construction permits when one round passes during which no bidder submits a new acceptable bid on any construction permit, applies a proactive waiver, or withdraws a previous high bid. In addition, however, the Bureaus retain the discretion to close the auction for all construction permits after the first round in which no bidder submits a proactive waiver, a withdrawal, or a new bid on any license on which it is not the standing high bidder. Thus, absent any other bidding activity, a bidder placing a new bid on a construction pennit for which it is the standing high bidder would not keep the auction open under this modified stopping rule. The Bureaus retain the discretion, however, to keep an auction open even if no new acceptable bids or proactive waivers are submitted, and no previous high bids are withdrawn. In this event, the effect will be the same as if a bidder had submitted a proactive waiver. Thus, the activity rule will apply as usual, and a bidder with insufficient activity will either lose bidding eligibility or use an activity rule waiver (if it has any left). 10655 Further, in their discretion, the Bureaus reserve the right to declare that the auction will end after a specified number of additional rounds ("special stopping rule"). If the FCC invokes this special stopping rule, it will accept bids in the final round(s) only for construction permits on which the high bid increased in at least one of the preceding specified number of rounds. The FCC intends to exercise this option only in extreme circumstances, such as where the auction is proceeding very slowly, where there is minimal overall bidding activity, or where it appears likely that the auction will not close within a reasonable period of time. Before exercising this option, the FCC is likely to attempt to increase the pace of the auction by, for example, increasing the number of bidding rounds per day, and/or increasing the amount of the minimum bid increments for the limited number of construction permits where there is still a high level of bidding activity. (5) Auction Delay, Suspension, or Cancellation In the Closed Broadcast Auction Public Notice, we proposed that, by public notice or by announcement during the auction, the Bureaus may delay, suspend, or cancel the auction in the event of natural disaster, technical obstacle, evidence of an auction security breach, unlawful bidding activity, administrative or weather necessity, or for any other reason that affects the fair and competitive conduct of competitive bidding. 58 We received no comments on this proposal. Because this approach has proven,'effective in resolving exigent circumstances in previous auctions, we will adopt our proposed auction cancellation rules. By public notice or by announcement during the auction, the Bureaus may delay, suspend or cancel the auction in the event of natural disaster, technical obstacle, evidence of an auction security breach, unlawful bidding activity, administrative or weather necessity, or for any other reason that affects the fair and competitive conduct of competitive bidding. Iri such cases, the Bureaus, in their sole discretion, may elect to: resume the auction starting from the beginning of the current round; resume the auction starting from some previous round; or cancel the auction in its entirety. Network interruption may cause the Bureaus to delay or suspend the auction. We emphasize that exercise of this authority is solely within the discretion of the Bureaus, and its use is not intended to be a substitute for situations in which bidders may wish to apply their activity rule waivers. B. Bidding Procedures (1) Round Structure The initial bidding schedule will be announced by public notice at least one week before the start of the auction, and will be included in the registration mailings. The round structure for each bidding round contains a single bidding round followed by the release of the round results. Also, as noted in Section 4.A.(1) above, we may partition the bidding rounds to allow bidding to occur on different groupings of MX Groups during different time periods within a given round. SS Id. at 9. 10656 In the event that we institute such a procedure, a publicly released bidding schedule will clearly indicate when bids will be accepted for each group of construction permits during a round The FCC has discretion to change the bidding schedule in order to foster an auction pace that reasonably balances speed with the bidders' need to study round results and adjust their bidding strategies. The FCC may increase or decrease the amount of time for the bidding rounds and review periods, or the number of rounds per day, depending upon the bidding activity level and other factors. (2) Reserve Price or Minimum Opening Bid Generally, the Budget Act calls upon the Commission to prescribe methods by which a reasonable reserve price will be required or a minimum opening bid established when FCC licenses are subject to auction (i.e., because they are mutually exclusive), unless the Commission determines that a reserve price or minimum opening bid is not in the public interest. 59 Consistent with this mandate, the Commission has directed the Bureaus to seek comment on the use of a minimum opening bid and/or reserve price prior to the start of each auction.60 The Bureaus were directed to seek comment on the methodology to be employed in establishing each of these mechanisms. Among other factors, the Bureaus may consider the type of service that will be offered, the amount of spectrum being auctioned, the degree of competition from incumbent providers, the size of the geographic service areas, potential advertising revenue, physical phenomena, equipment design limitations and interference with other spectrum bands.61 The Commission concluded that the Bureaus should have the discretion to employ either or both of these mechanisms for future auctions. 62 In the Closed Broadcast Auction Public Ndtice, the Bureaus proposed to establish minimum opening bids and to retain discretion to lower the minimum opening bids. 63 In the alternative, the Bureaus sought comment on whether, consistent with the Budget Act, the public interest would be served by having no minimum opening bid or reserve price. 64 Numerous comments addressed the issue of minimum opening bids and reserve prices. A number of commenters requested that certain minimum opening bids be lowered for specific primary service television markets. Fant, Lam.co Communications, Inc. (Lamco ), KOB­ TV, LLC (KOB), Meridian Communications of Montana, Inc. (Meridian), Sunbelt Broadcasting Company(Sunbelt)/Falls Broadcasting Company/Sierra Radio Company (collectively - Sunbelt/Falls/Sierra), Ramar Communications II, Ltd. (Ramar) and Uhlmann/Latshaw Broadcasting, LLC (Uhlmann/Latshaw) point out what they believe are disproportionate S9 60 61 62 63 64 Budget Act, see supra note 2. See Part I Third Report and Order, 13 FCC Red. at 455-456, 'If 141. See Broadcast First Report and Order at 1597 I ~ 134. Id. Closed Broadcast Auction Public Notice at 4. Id at4 - 5. 10657 differences in the sizes of certain primary service television markets in terms of both households and revenues and the minimum opening bids for those markets. 65 As indicative of this apparent disparity, these commenters specifically point to the minimum opening bids for: International Falls, Minnesota; Ironwood, Michigan; Logan, Utah, Manteo, North Carolina; Rapid City, South Dakota, Roswell, New Mexico; Silver City, New Mexico; and Sun Valley, Idaho. We find merit in these commenters' argilments and, with the exception of Rapid City, South Dakota, we have revised the minimum opening bids for each of these markets and for Coos Bay, Oregon, for similar reasons. The revised minimum opening bids are contained in Attachment A. As for Rapid City, South Dakota, we believe the minimum opening bid is appropriate fo~ UHF spectrum in a market of that size and, for the reasons set forth below, we do not adopt Sunbelt's alternative bid proposal for that market. Meridian and Sunbelt/Falls/Sierra suggest that the minimum opening bids for television be based upon the number of households in the proposed market and calculated at $1.00 per household.66 For undefined television markets (those with less than 25,000 households), Sunbelt/Falls/Sierra suggest that a minimum bid of $25,000 be required.67 Sunbelt/Falls/Sierra also suggest that radio markets be based on the population within the station's predicted 1 m V /m contour and calculated at $0.20 per person or with a minimum bid of $10,000 per applicant.68 None of these commenters provide any documentation or evidence to support any of their proposed minimum opening bids. It is not clear why the $1.00 and $0.20 figures were chosen. Therefore, since there is no method to determine the accuracy of these alternative proposals, we shall not adopt them. Kimble and Hudson Communications, Inc. (Hudson), applicants for a new FM radio station in Oro Valley, Arizona, request that the minimum opening bid for that market be lowered from $250,000, to $50,000.69 Kimble argues that the population within the l.OmV/m contour of his proposed facility is only 27,706 and that the only way to justify a minimum ·opening bid of $250,000 is to assume that the new Oro Valley station would be able to serve the Tucson radio market. 70 Hudson and Kimble conclude that their proposed facilities cannot serve Tucson. 71 The fact that neither Kimble nor Hudson have proposed a station that would provide service to Tucson, Arizona, does not support lowering of the minimum opening bid for the FM spectrum at Oro Valley, Arizona. The minimum opening bid was based upon a maximum class facility operating at the Commission's allotment reference coordinates and not individual 65 Comments off ant at 1-3; Comments ofKOB at 1-5 and Reply Comments ofKOB at 1-3; Comments at Lamco at I; Comments of Meridian at 1-8; Comments of Ramar at 1; Comments of Sunbelt/Falls/Sierra at 1-8 and I 0-11; Comments ofUhlmann/Latshaw at 1-4. 66 67 68 69 70 71 Comments of Meridian at 7; Comments of Sunbelt/Falls/Sierra at 10-1 l. Comments of Sunbelt/Falls/Sierra at 10-11. Id Comments of Kimble at 1-3; Comments of Hudson at 1-2. Id. Id 10658 applicants' proposals. Furthermore, neither Kimble nor Hudson have demonstrated why the minimum opening bid should be reduced to $50,000. Guam maintains that the minimum opening bid for the FM spectrum on Channel 275C at Agana, Guam ($160,000) is too high.72 Guam argues that the class of the facility is irrelevant on the island of Guam because any class station will cover the entire island population. 73 Guam also believes that the population to be served by the proposed station is also not an accurate indicator of the proposed station's value.74 Guam contends that traditionally, a station's value assumes that a significant portion of a station's overall value is contributed by the listeners in automobiles traveling into the station's service area from other areas. According to Guam, no such listeners exist on the island ofGuam.75 Furthermore, Guam notes that the residents of Guam are in the middle of a deep economic depression.76 Finally, Guam notes that there are already four network television stations, nine FM stations and three AM stations serving the island and that the new FM station would have to compete with a small pool of potential advertisers.77 Given these factors, Guam estimates that the minimum opening bid for the new FM station on Channel 275C at Agana, Guam, should be l 0% of what would be appropriate for Class C FM spectrum on the mainland of the United States or $16,000.78 Guam does not suggest that the minimum opening bid for Channel 275C at Agana, Guam, is greater than what the actual station is worth. Furthermore, Guam has not specifically demonstrated why the minimum opening,bid should be reduced by 90% to $16,000. Therefore, we shall not reduce the minimum opening bid for that market. Three Angels Broadcasting Network, Inc. (Three Angels), an applicant in sixteen of the secondary television markets, notes that its minimum opening bids average more than $65,000 per market.79 Three Angels maintains that this figure is "ridiculously high" and asks that the Commission set minimum opening bids for SST markets at $5,000 per market.80 Three Angels provides the "purchase prices" it paid for the stations it owns and Three Angels calculates that the average price for such stations was $5,000. 81 Three Angels states that this is a more realistic level for such stations and that the current minimum opening bids are much higher than warranted. 82 CBA argues that the minimum opening bids for some secondary television are beyond the means of LPTV applicants. Because the inability to obtain a grant of a displacement 72 73 74 75 76 77 78 79 80 81 82 Comments of Guam at 1 · Id. at 2. Id. at 3. Id. at 3. Id. at 3-4. Id Id. at 6' Comments of Three Angels at I. Id. at I. Id. at 2 & Exhibit I. Id 10659 application could mean the "death" of an LPTV station, CBA urges that the Commission lower the minimum opening bids if no minimum opening bids are received for SST markets. NT A requests that the minimum opening bids for the secondary television services be adjusted downward to a "fraction of the amounts shown. "83 CTI specifically complains that the minimum opening bid for the low power channel 28 at Hartford, Connecticut ($120,000) is too high.84 Finally, Dove Broadcasting, Inc. (Dove), complains that the minimum opening bid for its secondary television market (SST-80- $30,000) is too high.8s Dove notes that three of the four applicants in that market are for low power television stations in Augusta, Georgia, and its application is for a television translator station at Johnston, South Carolina. 86 Dove argues that, while a $30,000 minimum opening bid for the Augusta applications may be keepii:ig with the Commission's formula, only an infinitesimal fraction of that amount would fit into any reasonable formula for the Johnston application. 87 Without further explanation, Dove requests that it be released from any minimum opening bid or up front payment for its Johnston application. 88 Apart from Three Angels providing anecdotal evidence of what it claims it paid for its stations, none of these commenters provide methodologies or documentation for what they believe the minimum opening bid should be in their markets. It is not clear whether the "purchase prices" that Three Angels paid for its stations is an accurate reflection of the value of LPTV or television translator stations. Therefore, we are not persuaded that any change of the minimum opening bids is appropriate in any of the markets cited by these commenters. NTA, Channel 13 Television, Inc. (CTI) and KARE Network Management, Inc. (KARE) request that there be no minimum opening bids for secondary services. NTA argues that extending the length of competitive bidding is a preferable alternative to the setting of minimum opening bids. 89 NTA, CTI and KARE believe that the public interest would best be served by having no minimum opening bids associated with television secondary services.90 CTI argues that there should be no minimum opening bid for secondary television service markets because these applications are for facilities that may be displaced at any time by full service television facilities.91 The Commission has previously considered the matter of special relief for secondary · service applicants in the context of the competitive bidding process. 92 Special exceptions to the anti-collusion rule were adopted by the Commission allowing for certain kinds of settlement discussions to occur between mutually exclusive applicants after the deadline for filing short- 83 84 85 86 87 88 89 90 91 92 Id Comments of CTI at 2. Comments of Dove at I. Id Id. at2. Id Comments of NT A at 2. Comments of CTI at 1-3; Comments of NT A at 2-3; Comments of KARE at 1-2. Comments of CTI at 2. · See Memorandum Opinion and Order on Reconsideration at n 46, et seq. 10660 form applications. While the Commission had the opportunity to grant further forms of relief for secondary services, including relief from minimum opening bids, it chose not to do so. We see no reason now to deviate from our customary practice of setting minimum opening bids for LPTV and other secondary service applicants in the same manner as we have dealt with other services. Further, efficiency factors militate toward the use of minimum opening bids and our prior experience in conducting auctions has demonstrated the importance of minimum opening bids as tools to ensure their expeditious execution. CBA asserts that the Commission should exercise discretion to lower minimum opening bids to below the level of upfront payments in cases where no opening bid is made. While we already have such discretion, we _feel it is important that bidders not attempt to "game" the auction in this regard. Waiting out a round in anticipation of a reduction in the minimum opening bid amount would be inadvisable in that a loss of activity rule waivers would automatically occur. This, in tum, reduces the flexibility that a bidder might have in progressing through the competitive bidding process. Further, it is important for bidders to take note of the fact that the Commission has not opted to reduce minimum opening bids in previous auctions. We note that many commenters chose to address the topic of minimum opening bids, generically. Roy E. Henderson (Henderson) and Guam do not believe it is in the public interest to have any minimum opening bids in this auction.93 Riverbanks Restaurants, Inc. (Riverbanks), while not an applicant in this auction, urges the Commission to not adopt minimum opening bids for television markets 150 and below.94 ,' Unlike most of the recently auctioned wireless services, Henderson maintains that broadcasting is a mature service and the most valuable spectrum in the major markets has long been allocated. 95 The remaining spectrum to be auctioned, Henderson believes, represents the interests of small market broadcast entrepreneurs seeking to bring radio service to underserved communities in largely rural.environments.96 However, even ifit were to be assumed that the most valuable spectrum has previously been licensed by the Commission, this does not mean that the spectrum about to be auctioned is without value. The large number of long-form applications on file belie this fact. Guam argues that many applicants applied for their facilities without budgeting for an auction.97 Unlike other services~ Henderson notes that many of the applicants in this auction have already expended resources prior to the upfront payment. 98 Orion Communications Limited (Orion), one of the applicants for a new FM station at Biltmore Forest, North Carolina, notes that, in five of the FM radio markets, applicants have already gone through a comparative hearing and expended large sums to prosecute their applications.99 Orion requests that applicants in markets where applications have already gone through a comparative hearing 93 94 95 96 97 98 99 Comments of Henderson at 1-7 and Reply Comments of Henderson at 1-3; Comments of Guam at 7. Comments of Riverbanks at 1-7. Comments of Henderson at 2. Id at 3. Comments of Guam at 7. Id Comments of Orion at 2. 10661 be exempted from a minimum opening bid or that the minimum opening bid be de minimis. 100 We disagree with these commenters that setting·a minimum opening bid for broadcast markets is not in the public interest. Based on our experience in using minimum opening bids in prior auctions, we believe that minimum opening bids speed the course of the auction and ensure that valuable public assets are not sold for nominal prices, without unduly interfering with the efficient assignment of construction permits or licenses. 101 None of the commenters have indicated that the minimum opening bid in their market is higher than the actual value of their proposed station. They simply believe that the bidders should be able to start the_ bidding at a level they deem appropriate. However, we have found that allowing such flexibility invariably delays the auction process as bids take an inordinate amount of time to reach their final levels. Setting a minimum opening bid will mean that only those bidders that are sincerely interested in a facility will be participating in the auction and that the bidding will be resolved more rapidly. While some applicants in this auction may already have expended funds to prosecute their applications, we do not see that this fact supports the proposition that no minimum opening bids be adopted. All applicants in the Closed Broadcast Auction will have underwritten varying levels of cost associated with their prospective business ventures. While it is true that hearing case applicants have encountered very significant costs to date, this does not change that fact that our rules and past practices uniformly have required that bidders purchase their bidding eligibility. Providing such eligibility at no charge or at a reduced rate to a single class of bidders would raise questions of whether we are conducting the auction in an even-handed manner. Once again, no commenter suggests that the minimum opening bid in their market is actually higher than the fair market value of the station and we anticipate that applicants will factor their existing expenses into how much they decide to bid for their station, as has been the case in past auctions. We adopt the minimum opening bids proposed for each of the construction permits in the Closed Broadcast Auction, as modified on Attachment A, and which are reducible at the discretion of the Bureaus. This will allow the Bureaus flexibility to adjust the minimum opening bids if circumstances warrant. We emphasize, however, that such discretion will be exercised, if at all, sparingly and early in the auction, i.e., before bidders lose all waivers and begin to lose substantial eligibility. During the course of the auction, the Bureaus will not entertain any bidder requests to reduce the minimum opening bid on specific construction permits. 100 101 Comments of Orion at 3. 47 u.s.c. 309G)(3)(C). 10662 (3) Minimum Accepted Bids and Bid Increments In the Closed Broadcast Auction Public Notice, we proposed a minimum bid increment of 1 O percent.102 KOB is of the view that since exponential smoothing is not proposed for the Closed Broadcast Auction, participants will not be given the opportunity to attain marginally optimal pricing for their markets. 103 Our use of exponential smoothing in recent auctions has involved varying the minimum bidding between 10 percent and 20 percent. The effect of choosing a simplified "flat" increment will be to allow greater flexibility to bidders early in the competitive bidding process. It will still allow bidders the same opportunity to attain optimal prices. We therefore see the 10 percent minimum bid increment as an appropriate· tool to use in this auction and can see no detriment to potential bidders. Biltmore Forest comments that 10 percent bidding increments are too high to maintain in the later stages of an auction, since the 10 percent figure results in the setting of larger and larger increments in raw dollar terms. 104 This actually causes less revenue to the Treasury since some that might be willing to make a 4 or 5 percent incremental increase against a standing high bid would not place a bid that would be required to have to be 10 percent higher. 105 In reply, KM states that the I 0 percent bidding increment is acceptable, but suggests a cap in raw dollars during the later stages of the auction. 106 Our past experience however, has shown us that a 10 percent bid increment is not excessive and will not significantly affect the amounts of prospective bids or the rate at which bidding occurs. Additionally, we do have discretion to lower the bid increment during the progress of an auction, if we deem that circumstances so dictate. We adopt the proposal contained in the Closed Broadcast Auction Public Notice. The Bureaus retain the discretion to change the minimum bid increment if they determine that circumstances so dictate. For example, the Bureaus may raise the minimum bid increment toward the end of the auction to speed the pace at which bids reach their final values. The Bureaus will do so by announcement in the Automated Auction System. In addition, the Bureaus retain the discretion to implement a dollar floor for the bid increment to further facilitate a timely close of the auction. Once there is a standing high bid on a construction permit, there will be a bid increment associated with that bid indicating the minimum amount by which the bid on that license can be raised. For the Closed Broadcast Auction, we will use a flat, across-the-board increment of 10 102 103 104 !OS 106 C/osedBroadcast Auction Public Notice at 6. Comments ofKOB at 5. Comments of Biltmore Forest at 3. Id at 3. Reply Comments of KM at 6. 10663 percent to calculate minimum bid increments. The Bureaus retain the discretion to compute the minimum bid increment through other methodologies if it determines that circumstance so dictate. - Please note that all bidding will take place either through the automated bidding software or by telephonic bidding. (Telephonic bid assistants are required to use a script when handling bids placed by telephone. Telephonic bidders are therefore reminded to allow sufficient time to bid, by placing their calls well in advance of the close of a round, because four to five minutes are necessary to complete a bid submission. Electronic bidding avoids potential difficulties that might be experienced in attempting to place a telephonic bid toward the end of a round when heavy traffic may result in delays.) There will be no on-site bidding during Auction No. 25. A bidder's ability to bid on specific construction permits in the first round of the auction is determined by two factors: (l)the construction permits applied for on FCC Form 175; and (2) the upfront payment amount deposited. The bid submission screens will be tailored for each bidder to include only those construction permits for which the bidder applied on its FCC Form 175. The bidding software requires each bidder to login to the FCC auction system during the bidding round using the FCC account number, bidder identification number, and the confidential security codes provided in the registration materials. Bidders are strongly encouraged to download and print bid confirmations ~they submit their bids. The bid entry screen of the Automated Auction System software for the Closed Broadcast Auction allows bidders to place multiple increment bids which will let bidders increase high bids from one to nine bid increments. A single bid increment is defined as the difference between the standing high bid and the minimum acceptable bid for a construction permit. To place a bid on a construction permit, the bidder must enter a whole number between 1 and 9 in the bid increment multiplier (Bid Mult) field. This value will determine the amount of the bid (Amount Bid) by multiplying the bid increment multiplier by the bid increment and adding the result to the high bid amount according to the following formula: Amount Bid = High Bid + (Bid Mult * Bid Increment) Thus, bidders may place a bid that exceeds the standing high bid by between one and nine times the bid increment. For example, to bid the minimum acceptable bid, which is equal to one bid increment, a bidder will enter 11 1 11 in the bid increment multiplier column and press submit. For any construction permit on which the FCC is designated as the high bidder (i.e., a construction permit that has not yet received a bid in the auction or where the high bid was withdrawn and a new bid has not yet been placed), bidders will be limited to bidding only the minimum acceptable bid. In both of these cases no increment exists for the construction permits, 10664 and bidders should enter "l" in the Bid Mult field. Note that in this case, any whole number between 1 and 9 entered in the multiplier column will result in a bid value at the minimum acceptable bid amount. Finally, bidders are cautioned in entering numbers in the Bid Mult field because, as explained in the following section, a high bidder that withdraws its standing high bid from a previous round, even if mistakenly or erroneously made, is subject to bid withdrawal payments. (6) Bid Removal and Bid Withdrawal In the Closed Broadcast Auction Public Notice, we proposed bid removal and bid withdrawal rules. 1 With respect to bid withdrawals, we proposed limiting each bidder to withdrawals in no more than two rounds during the course of the auction. The two rounds in which withdrawals are utilized, we proposed, would be at the bidder's discretion. Nobco asks that we not allow entities to withdraw bids once they are submitted since it will cause confusion for a bid to be posted and later withdrawn. Historically, we have allowed bidders some degree of flexibility to withdraw bids for the purpose of pursuing backup strategies and to maintain a dynamic and vigorous bidding environment. However, we clarify here that the Commission reserves the right to review the bid withdrawal behavior of all auction participants for patterns of insincere bidding which threatens the integrity of the auction process. Any abuse of the Commission's bid withdrawal procedures could result in the denial of the ability to bid on a market. The Commission retains the discretion to scrutinize multiple bid withdrawals on a single construction permit for evidence of anti-competitive strategic behavior, and take appropriate action when it deems necessary. For further guidance, please refer to Sections 1.2104 and 1.2109 of the Commission's rules. With this in mind, we adopt the proposed procedures for bid removal and bid withdrawal. a. Procedures Before the close of a bidding round, a bidder has the option of removing any bids placed in that round. By using the "remove bid" function in the software, a bidder may effectively "unsubmit" any bid placed within that round. 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 for the round in which it is removed. This procedure will enhance bidder flexibility and, we believe, may serve to expedite the course of the auction. Therefore, we will adopt these procedures for the Closed Broadcast Auction. Once a round closes, a bidder may no longer remove a bid. However, in the next round, a bidder may withdraw standing high bids from previous rounds using the "withdraw bid" function (assuming that the bidder has not exhausted its withdrawal allowance). A high bidder that withdraws its standing high bid from a previous round is subject to the bid withdrawal payments specified in 4 7 C .F .R. § § 1.2104(g) and 1.2109. The procedure for withdrawing a bid and receiving a withdrawal confirmation is essentially the same as the bidding procedure described in "High Bids," Part 4.B.(3). 10665 In previous auctions, we have detected bidder conduct that, arguably, may have constituted strategic bidding through the use of bid withdrawals. While we continue to recognize the important role that bid withdrawals play in an auction, i.e., reducing risk associated with efforts to secure various construction permits or licenses in combination, we conclude that, for the Closed Broadcast Auction, adoption of a limit on their use to two rounds is the most appropriate outcome. By doing so we believe we strike a reasonable compromise that will allow bidders to use withdrawals. Our decision on this issue is based upon our experience in prior auctions, particularly the PCS D, E and F block auction, 800 MHz SMR auction, and LMDS auction, and is in no way a reflection of our view regarding the likelihood of any speculation or "gaming" in the Closed Broadcast Auction. · The Bureaus will therefore limit the number of rounds in which bidders may place withdrawals to two rounds. These rounds will be at the bidder's discretion and there will be no limit on the number of bids that may be withdrawn in either of these rounds. Withdrawals will still be subject to the bid withdrawal payments specified in 47 C.F.R. §§ l.2104(g), and 1.2109. Bidders are again reminded that abuse of the Commission's bid withdrawal procedures could result in the denial of the ability to bid on a market. If a high bid is withdrawn, the construction permit will be offered in the next round at the second highest bid price, which may be less than, or equal to, in the case of tie bids, the amount of the withdrawn bid, without any bid increment. The FCC will serve as a "place holder" on the construction permit until a new acceptable bid is submitted on that permit. b. Calculation Generally, a bidder that withdraws a standing high bid during the course of an auction will be subject to a payment equal to the lower of: (1) the difference between the net withdrawn bid and the subsequent net winning bid; or (2) the difference between the gross withdrawn bid and the subsequent gross winning bid for that construction permit. In the case of multiple withdrawals on a construction permit, the payment for the final withdrawer (i.e. that bidder who is the last bidder to withdraw before the license is won in an auction) will be computed as above. The payment for all other withdrawers will be computed as the lower of: ( 1) either the difference between the net withdrawn bid and the highest of the subsequent net withdrawn bids or the difference between the net withdrawn bid and the subsequent net winning bid, whichever is less; or (2) either the difference between the gross withdrawn bid and the highest of the subsequent gross withdrawn bids or the difference between the gross withdrawn bid and the subsequent gross winning bid, whichever is less. No withdrawal payment will be assessed for a withdrawn bid if either the subsequent gross or net winning bid or if any of the subsequent gross or net withdrawn bids exceed the gross or net amount of the withdrawn bid. In the event that a construction permit for which there have been withdrawn bids is '10t won in the auction, then those bidders with outstanding withdrawals will have 3 percent of their withdrawn bid withheld until such time as the construction permit can be reauctioned and a final payment assigned. 10666 (7) Round Resu1ts The bids placed during a round are not published until the conclusion of that bidding period. After a round closes, the FCC will compile reports of all bids placed. bids withdrawn, current high bids, new minimum accepted bids, and bidder eligibility status (bidding eligibility and activity rule waivers), and post the reports for public access. Reports reflecting bidders' identities and bidder identification numbers for Auction No. 25 will be available before and during the auction. Thus, bidders will know in advance of this auction the identities of the bidders against which they are bidding. · (8) Auction Announcements The FCC will use auction announcements to announce items such as schedule changes and round sequences and length. All FCC auction announcements will be available on the FCC remote electronic bidding system, as well as the Internet and the FCC Bulletin Board System. (9) Other Matters a. Attachment A Deletions and Corrections A number of commenters argued that, for various reasons, certain applications should not have been included in the auction. Association of American Public Television Stations (APTS) and Rocky Mountain Public Broadcasting Network, Inc. (Rocky Mountain) request that so-called "noncommercial educational" applicants for secondary television facilities not be included in the auction. 107 APTS and Rocky Mountain note that, in the Broadcast First Report and Order, the Commission recognized that noncommercial educational applicants hold an explicit statutory exemption from auctions when applying for broadcast construction permits in the reserved spectrum. 108 With respect to whether the exemption should apply to noncommercial educational broadcasters applying for non-reserved spectrum, the Commission deferred rendering a decision on that question to its pending rulemaking concerning the reexamination of comparative standards for noncommercial educational applicants. 109 Rocky Mountain points out that the television translator and LPTV services do not have spectrum reserved for noncommercial educational use and all channels are non-reserved. 110 Thus, Rocky Mountain maintains that so­ called "noncommercial educational" applications in the secondary television services should not have been included in the auction and that those applications should be held pending with the other AM, FM and full service TV applications and subject to the outcome of the noncommercial 107 Comments of APTS at 4; Comments of Rocky Mountain at 4; see also Comments of Four Rivers Community Broadcasting at I; Comments of New Jersey Public Broadcasting Authority at 1. 108 Id. (citing First Report and Order,, 24). 109 See Reexamination of the Comparative Standards for Noncommercial Educational Applicants, Notice of Proposed Rulemaking, MM Docket No. 95-31, Notice of Proposed Rulemaking, I 0 FCC Red 2877 ( 1995). 11° Comments of Rocky Mountain at 2. 10667 comparative standards rulemaking. 111 Rocky Mountain also argues that it would be a public policy mistake of grave consequence to subject these applications to auction because the continuation of public television service to areas currently served by television translators would be jeopardized. 112 We decline the requests of APTS and Rocky Mountain to remove certain of the secondary television applications from the auction and disagree that they are exempt from auction. Section 309G)(2)(C) of the Communications Act contains the exemption from auctions for noncommercial educational applicants. 113 That Section states that auction authority shall not apply to "licenses issued by the Commission - ... for stations described in section 397(6) of this Act." Section 397(6) of the Communications Act contains the definition of the terms "noncommercial educational broadcast station" and "public broadcast station." 114 A "noncommercial educational broadcast station" is defined as "a television or radio broadcast station which - (A) under the rules and regulations of the Commission in effect on the effective date of this paragraph, is eligible to be licensed by the Commission as a noncommercial educational radio or television broadcast station and which is owned and operated by a public agency or nonprofit private foundation, corporation, or association; or (B) is owned and operated by a municipality and which transmits only noncommercial programs for education purposes. 115 In this case, applicants in the secondary television services (LPTV and television translators) are not eligible to be licensed as noncommercial educational, a key element in the statutory definition. Unlike the AM radio, FM radio, FM Translator and full service television services, where applicants for non-reserved band spectrum may nevertheless apply as noncommercial .educational entities, have their qualifications reviewed and their licenses issued as "noncommercial educational," there is no such counterpart licensing scheme in the secondary television services. In its Report and Order establishing the low power television service, the Commission found it unnecessary to reserve channels for noncommercial low power stations. The Commission first considered whether to reserve channels for noncommercial use in the low power television service and, rejecting that concept, the Commission stated that "channel reservation comports with neither our overall approach to low power noncommercial operation ! II 112 113 114 IIS Id Id. at 3. See 47 U.S.C. § 309G)(2)(C). See 47 U.S.C. § 397(6). Id 10668 nor with the secondary status of all low power stations." An Inquiry Into the Future Role of Low Power Television Broadcasting and Television Translators in the National Telecommunications System, Report and Order, FCC 82-107, 47 FR 21468 (1982). As to whether applicants could apply for low po~er television facilities on a noncommercial basis, the Commission stated that it perceived several reasons for not imposing strict regulations regarding noncommercial operation of low power stations. With respect to all aspects except technical ones, the Commission stated that it envisioned "the low power service as an essentially unregulated service." The Commission left to the individual licensees the mode of support, including free and pay programming and the discretion whether to air commercials or not. The Commis~ion specifically stated that it would not concern itself with the question of whether a low power television applicant would qualify as a "noncommercial educational" entity. The Commission noted that this was the same approach for television translator stations which were secondary by nature. As such, the Commission does not require applicants for LPTV and television translator stations to demonstrate their status as noncommercial educational and their licenses are not issued as such. Licensees are free to air commercial or noncommercial programming, and they may change their programming without prior notice to or authorization from the Commission. Therefore, because stations are not licensed as "noncommercial educational" in the secondary television services, applicants in those services are not subject to the statutory exemption from auction. Accordingly, pursuant to Sectiort 3090)(1) of the Communications Act, the Commission must subject these applications to auction. The second part of the definition provides an exemption from the auction requirement for applications for stations to be owned by municipalities seeking to transmit only noncommercial educational programming. Pending Commission resolution of statutory questions regarding the award of licenses to noncommercial applicants applying for commercial channels, see Broadcast First Report and Order, 13 FCC Red at 15929-31, it is therefore inappropriate to include in the September 28, 1999, auction groups of competing applications with one or more applications for municipality-owned stations proposing to transmit noncommercial educational programming only. As a result of the Commission's regulatory treatment of the LPTV and television translator services and its determination not to issue noncommercial licenses in these services, it is impossible to determine whether any pending applications currently scheduled for the upcoming auction, in fact, seek a station as defined by Section 397(6)(B) of the Act, and neither APTS nor Rocky Mountain has identified such pending LPTV or television translator applications. Accordingly, applicants that qualify as "municipalities" (as defined below) will be permitted to identify themselves in their short form (FCC Form 175) filing. Upon examination of the short forms, if it is determined that an applicant is a municipality, and that its intent is to transmit only noncommercial programs for educational purposes, then all of the applications in the corresponding MX Group will be removed from the auction and shall be subject to the Commission's pending rulemaking concerning the resolution of statutory questions regarding the award of licenses to noncommercial applicants applying for commercial channels. We shall employ the following definition for purposes of determining which applicants are 10669 "municipalities:" "a city, town, or other district possessing corporate existence; or the governing body of such a district." 116 CBA requests that applications for LPTV displacement relief not be included in the auction. 117 CBA argues that such applications should be included in a separate auction exclusively for displacement applications. 118 CBA points out that a nationwide auction with primary service television stations could remain open for many weeks and that requiring LPTV displacement applicants to participate in such an auction would mean that they would have to remain active in the auction and connected electronically to the Commission's bid site or risk missing new bids on their markets. 119 Third Coast Broadcasting (Third Coast) beiieves that displacement applications should not be auctioned at all and that some other means should be used to resolve the mutual exclusivities between such applications. 120 Third Coast does not suggest an alternative means. ZGS Communications, Inc. (ZGS) asks that the Commission not auction LPTV applications until the issue of whether the Commission will create a new lower power "Class A" service for television is resolved. 121 ZGS contends that so much uncertainty surrounding the LPTV service, it is unfair and imprudent to subject LPTV applications to auction. 122 While we are sensitive to the concerns of applicants for LPTV displacement facilities, Section 309(i) of the Communications Act requires that mutually-exclusive applications for such facilities be resolved via auction. We do not agree that we should delay licensing of the displacement applications until such time as the future of the proposed Class A television service is determined. The facilities proposed in these applications may be critical to the ongoing operation of many LPTV and television translator stations and we seek to expedite the licensing of such facilities. While uncertainty may exist with respect to the future of the LPTV and television translator services, we expect that applicants will take these factors into account when bidding on their facilities. Numerous commenters request that the Commission remove certain mutually exclusive groups from Attachment A and the closed broadcast auction scheduled for September 28, 1999. 123 For procedural reasons, such as, for example, the filing of settlement proposals, the following MX Groups will be removed from Attachment A, as originally released with the Closed Broadcast Auction Public Notice. A revised and updated Attachment A reflecting the deletion of the following MX Groups is appended to this Public Notice. The Random House College Dictionary, Revised Edition 1980, p. 877. Comments of CBA at 2-3 and Reply Comments of CBA at 1-2. Id Id Comments of Third Coast at l. Comments of ZGS at l. Id. 116 117 118 119 120 121 122 123 Written comments were submitted by Four Rivers Community Broadcasting Corporation; BK Radio; Elgin FM Limited Partnership and Lakeshore Broadcasting, Inc. 10670 PST28 William M. Smith 960404LO Grant Video, Inc. 960930KJ Waterloo 22, LLC 960930KN Valuevision International, Inc. 961001KR Donald & Melissa Bae 961001XJ Winstar Broadcasting Corp. 96100 I YH SST9 King Broadcasting Co. JG0601IF People's Television Association, Inc. 980601RG Spokane TV, Inc. 98060 I TZ SST12 Paxson Communications LPTV, Inc. JG0601AS Jim J. Chladek JG0601RQ SST16 GRK Productions Joint Venture 980601JW 3 Angels Broadcasting Network, Inc. 980601 VH SST28 He's Alive Broadcasting Association 980601RV Mountain Licenses, LP 980601 XA SST29 Cornerstone TV, Inc. 980601 SU Bruno-Goodworth Network, Inc. 980601 TL SST32 Trinity Broadcasting Network JG0601RH 3 Angels Broadcasting Network, Inc. 980601 VV SST34 Better Life TV 980601VN CA OR Broadcasting Inc. 98060 I WG SST35 J.B. Van De Sande JG0601VQ Green TV Corp. 980601 QC 10671 SST37 Rocky Mountain Broadcasting Network, Inc. JG0601 US Entravision Holdings, LLC. JG0601VU SST 41 3 Angels Broadcasting Network, Inc. JG0601XF Trinity Broadcasting Network JG0601 YX SST45 Paging Associates, Inc. JG060ICT New Jersey Public Broadcasting Authority JG0601MS SST 53 Paxson Communications LPTV, Inc. JG060IAR WLIG-TV, Inc. 980601XM SST56 Telemundo ofNorth California JG0601UX National Minority Television, Inc. JG0601 WZ Sainte Partners II, LP 980601LQ Chico License, LLC 980601 WK SST57 Lighthouse Communications, Inc. 980601KE Waters & Brock Communications 980601 TW SST60 Citizens TV, Inc. 980601 TA Mountain Licenses, LP 98060 I XP SST64 National Minority TV, Inc. 960516KV Kaleidoscope Development, LLC 9605 l 7Q5 Assa! Broadcasting Company 9605 l 7ZB SST73 Zenon Reynarowych 960517LX Deepak Viswanath 9605 I 7NK 10672 FM 16 Temecula, CA Channel 233A Kimler Broadcasting, Inc. 900 l 22MN Artistic Airwave Broadcasters 900122MP Laura Wilkinson Herron 900122MY FM 49 Lena, IL Channel 271 A Sems Entertainment, Inc. 931208MB Howard G. Bill 931223ME FM 98 North Madison, OH Channel 229A Music Express Broadcasting, Inc. 930121MB South Shore Broadcasting, Inc. 930121MF FM 118 Llano, TX Channel 242A Elgin FM Limited Partnership 970814MI BK Radio 97081 SMD Maxagrid Broadcasting Corporation 97081 SME FM 119 Mason, TX Channel 249C2 BK Radio 960823MF F oxcom, Inc. 960826MH Jayson D. & Janice M. Fritz 960826MS FM 139 New Martinsville, WV Channel 258A Seven Ranges Radio Company, Inc. 960223MA Nelson Hachem 960228MD FMT 5 Reading, PA Channel 300 Four Rivers Community Broadcasting Corp. 970130TA WDAC Radio Company 970606TK FMT 6 Hendersonville, TN and Nashville, TN Channel 233 SW Florida Community Radio, Inc. 940124TA Tuned In Broadcasting 940330TC AM 3 Florida City, FL 880B and Beaufort, SC 8800 Florida City Radio 86033 lAL Wilbur H. Goforth 86033 IAR AM 4 South Tucson, AZ 890B and Anthony, TX 890B Michael B. Glinter 860428AB Southwestern Broadcasters 850719AQ 10673 In addition, the following individual applications will be removed from Attachment A, as originally released with the Closed Broadcast Auction Public Notice: PST12 Linear Research Associates 950329KH PST15 Lockwood Broadcasting, Inc. 950814.KN SST3 National Minority TV, Inc. JG0601 WP SST5 3 Angels Broadcasting Network, Inc. JG0601XC SST13 WDSI License Corp. 980601MX SSTl4 State Board of,Education 980601JB Spokane School District 81 980601ZA Several commenters ask the Commission to correct errant miscellaneous Attachment A information and the Commission has accommodated these requests. b. Pre-auction Procedures for Pending, Frozen Applications Several commenters urge the Commission to remove their particular MX Group from the September 28, 1999 closed broadcast auction, alleging that their only competitor within the group is unacceptable and should be dismissed. 124 In the First Report and Order, 13 FCC Red at 15951, the Commission decisively rejected this argument and unequivocally stated that it would "not consider petitions to deny already filed, or accept additional petitions against pending 124 Comments of Susquehanna Radio Corp. (unique procedural posture entitles it to a decision on the merits of two pending pleadings, either of which would obviate the need for an auction) and Birach Broadcasting Corporation (simultaneously filed application for review requesting the Commission set aside the action taken by the May 17, 1999 Public Notice and, inter alia, dismiss the conflicting application as unacceptable); Reply comments of Snyder Hill Broadcasting, Inc. (cursory engineering review of competitor's application will reveal it is defective). Reply comments of Royce lntemationalBroadcastingCompany (replying to Susquehanna Comments, contending Susquehanna used the May 17, 1999 Public Notice as a platfonn to interject into this infonnal rulemakingproceedinga private dispute pending in a separate adjudicatory proceeding). 10674 applications, nor consider any questions raised in such petitions relating to the tenderability or acceptability of the pending long form applications." Rather, petitions to deny will be entertained only with respect to the auction winning bidder. The Commission concluded that the interests of the group of pending applicants is best served by this approach and, to do otherwise would significantly delay the commencement of competitive bidding and ultimate service to the public. Accordingly, we reject com.menters' requests to examine issue pleadings at this time. Similarly, one applicant125 in an FM MX group, questions how the auction can take place, given the Federal Aviation Administration's position that his proposal constitutes a hazard to air navigation because of electromagnetic interference. As with petitions to deny, th!! Commission concluded in the First Report and Order, 13 FCC Red at 15951and15978-9, that alleged technical defects will be considered after the auction and only with respect to the individual proposal of the winning bidder. c. Conflict Removal One applicant for an MX FM translator facility contends that there is no need for an auction because alternative frequencies exist and either one of the competing applicants could amend to specify a different frequency and remove the conflict. 126 The applicant argues that the Commission's failure to open a filing window, however, precludes the filing of such amendment and forces the parties into an unnecessary' auction. The applicant's assessment of its settlement options is misguided. As explicitly stated in the First Report and Order, 13 FCC Red at 15948- 9, pending secondary service applicants may still avoid an auction through a settlement agreement that complies with all Com.mission regulations, including the resolution of mutual exclusivity though various engineering means. Settlement arrangements may be filed at any time prior to the filing of short-form applications to participate in an auction; applicants need not delay settlement while awaiting Commission application filing windows. 127 d. § 307(b) Issue Two commenters128 request that the Commission notproceed with the auctioning of mutually exclusive AM applications specified in the Public Notice until the requisite 307(b) analysis had been performed. As discussed in the Broadcast First Report and Order in MM Docket No. 97-234, GC Docket No. 92-52 and GEN Docket No 90-264, 13 FCC Red 15920, 15964 ( 1998), the Commission determined that its competitive bidding authority should be harmonized with its statutory duty under 47 U.S.C. § 307(b) to effect an equitable distribution of 125 See Comments of Charles P. Miller. 126 See Comments ofTea-Visz, Inc. Indeed, applicants filing for secondary service facilities in future auction tiling windows will be afforded an opportunity to resolve their mutual exclusivities during a limited period after the filing of short form applications, but before the start of the auction, pursuant to procedures adopted in Memorandum Opinion and Order on Reconsideration at ~~ 61-67. 128 Comments of Booth, Freret, Imlay & Tepper, P.C. and Susquehanna Radio Corp. 127 10675 stations across the nation and concluded that the staff would undertake a traditional Section 307(b) analysis prior to conducting an auction for mutually exclusive AM applications. Furthermore, in light of the unique nature of the pending applications, the Commission recognized the need for additional information from the parties in order to evaluate the Section 307(b) considerations. On June 11, 1999, the staff issued letters to the pending mutually exclusive AM applicants, requesting submission of supplementary materials. Examination of the submitted amendments and a 307(b) analysis will appropriately ensue, as required. e. Minor Modifications to FCC Form 175 applications As noted in Section 3.B., supra, after the short-form filing deadline, applicants may make only minor changes to their FCC Form 175 applications. For example, permissible minor changes include deletion and addition of authorized bidders (to a maximum of three) and revision of exhibits. Filers should make these changes on-line, and submit a letter to Amy Zoslov, Chief, Auctions and Industry Analysis Division, Wireless Telecommunications Bureau, Federal Communications E:ommission, 445 12th Street, SW, Suite 4-A760 Washington, DC 20554, briefly summarizing the changes. Questions about other changes should be directed to Bob Allen of the FCC Auctions and Industry Analysis Division at (202) 418-0660. f. Maintaining Currency of Information in FCC Form 175 applications Applicants have an obligation under Section 1.65 of the Commission's Rules, 47 C.F.R. §1.65, to maintain the completeness and accuracy of information in their short-form applications. Amendments reporting substantial changes of possible decisional significance in information contained in FCC Form175 applications, as defined by 47 C.F.R. § l.2105(b)(2), will not be accepted and may in some instances result in the dismissal of the FCC Form 175 application. Applicants should also be aware that failure to report ownership changes rendering them ineligible to participate in the auction under Section 309(1)(2) and applicable Commission rules, even if that failure is inadvertent, could result in serious financial penalties if they participate in competitive bidding and win a construction permit. These include default payments and revocation of construction permit or license. Section 1.65 amendments to pending long-form applications, however, should be filed after the auction and only by the winning bidder. The time for the filing of such amendments to the auction winners' long form applications will be announced by subsequent Public Notice. 10676 5. POST-AUCTION PROCEDURES A. Down Payments and Withdrawn Bid Payments After bidding has ended, the Commission will issue a public notice declaring the auction closed, identifying the winning bids and bidders for each license, and listing withdrawn bid payments due. Within ten business days after release of the auction closing 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 Government to 20 percent of its net winning bids (actual bids less any applicable bidding credits). See 47 C.F.R. § 1.2107(b). In addition, by the same deadline all bidders must pay any withdrawn bid amounts due under 4 7 C.F .R. § 1.2104(g), as discussed in "Bid Removal and Bid Withdrawal," Part 4.B.(6), supra. (Upfront payments are applied first to satisfy any withdrawn bid liability, before being applied toward down payments.) B. Default and Disqualification Any high bidder that defaults or is disqualified after the close of the auction (i.e., fails to remit the required down payment within the prescribed period of time, fails to make full payment, or is otherwise disqualified) will' be subject to the payments described in 4 7 C.F .R. § 1.2104(g)(2). In such event the Commission may offer the construction permit to the next highest bidders (in descending order) at their final bids, or reauction the spectrum. See 47 C.F.R. § 1.2109(b) and ( c ). 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 construction permits or licenses held by the applicant. See 47 C.F.R. § l.2109(d). C. Refund of Remaining Upfront Payment Balance All applicants that submitted upfront payments but were not winning bidders for a Closed Broadcast Auction construction permit may be entitled to a refund of their remaining upfront payment balance after the conclusion of the auction. No refund will be made unless there are excess funds on deposit from that applicant after any applicable bid withdrawal payments have been paid. Bidders that drop out of the auction completely may be eligible for a re~d of their upfront payments before the close of the auction. However, bidders that reduce their eligibility and remain in the auction are not eligible for partial refunds of upfront payments until the close of the auction. Qualified bidders that have exhausted all of their activity rule waivers, have no remaining bidding eligibility, and have not withdrawn a high bid during the auction must submit 10677 a written refund request which includes wire transfer instructions, a Taxpayer Identification Number ("TIN"), and a copy of their bidding eligibility screen print, to: Federal Communications Commission Billings and Collections Branch Attn: Regina Dorsey or Linwood Jenkins 445 12th Street, SW, Room 1-A824 Washington, DC 20554 Bidders can also fax their request to the Billings and Collections Branch at (202) 418- 2843. Once the request has been approved, a refund will be sent to the address provided on the FCC Form 159. NOTE: Refund processing generally takes up to two weeks to complete. Bidders with questions about refunds should contact Michelle Bennett or Gail Glasser at (202) 418-1995. Media Contact: Meribeth McCarrick at (202) 418-0654 Wireless Telecommunications Bureau: Auctions and Industry Analysis Division: Bob Allen, Legal Branch, at (202) 418-0660; Jeff Garrettson, Auctions Operations Branch, at (202) 418-0660 or Bob Reagle, Auctions Operations Branch, at (717) 338-2807 Mass Media Bureau: Video Services Division: Shaun Maher at (202) 418-2324 Audio Services Division: Lisa Scanlan at (202) 418-2700 -FCC- 10678 PST Primary Service Television Construction Permit Minimum Opening Bids and Upfront Payments Bidding Upfront Minimum CaseF~ ~ Location Channel Units Payment Opening Bid Applicants Numbe Abilene, Texas 15 160,000 s l 60.000.00 $ l 60,000.00 Star Broadcasting. Inc. 950123KW Ramar Communications. Inc. 959515KY Cardinal Broadcasting Corp. 950515KX Channel 15. Inc. 950515LA PSTI Boise, Idaho 14 . 280,000 $280,000.00 $280,000.00 KM Communications. Inc. 941215KF ' mternational Television Network. Inc. 950320KE PST3 Butte, Montana 24 160,000 $160,000.00 Sl60,000.00 \icridian Communications of Montana. Inc. 960108KE Redwood Broadcasting. Inc. 960405KR Big Sky Television, Inc. 960405KW Winstar Broadcasting Corn. 960404Ll 8E o,v;~,wm• 43 160,000 $ l 60.000.00 $160,000.0L ~ Broadcasting. LP 960718KQ ony J. Fant 961119KI , Oregon 41 160,000 $160,000.00 $160,000.0C iary Stevens 960920WZ \iollywanna. LLC 970730KU >acific Bay Broadcastin!! 970805KN ass, Oregon 30 200,000 $200,000.00 s200,ooo.ou ommunications Properties. Inc. 960613KE Better Life Tele,ision 960701KK WBG License Co. 960717KH Peregrine Communications 960725LC PST7 Great Falls, Montana 26 160,000 $160,000.00 $160,000.00 Meridian Communications of Montana. Inc. 960108KG Winstar Broadcasting Corp. 960404KI Redwood Broadcasting. Inc. 960405LC Big Sky Television 960405LF IPST8 llldaho Falls, Idaho I 20 II 160,0001 $160,000.001 $160,000.001 Meridian Communications Company 950306KF Flat Iron Ranches. Inc. 950512KG IPST9 lllnternational Falls, Minlllesota I 11 II 320.000 I· $320.000.00 I $320.000.001 KBJR License. Inc. 960709KR Fant Broadcasting Company 961001LM IPST!Ollonwood, Michigan I 24 I 160.000 $160,000.00 $160.000.00 Northern Michigan Educational TV Association 960624KL WDIO-TV. Inc. 960927KG Fant Broadcasting Company 961001LL PST!! !Shpeming, Michigan 10 320,000 $320.000.00 $320.000.00 Uhlmann/Latshaw Broadcasting, LLC 941107KH Scanlan Television. Inc. 941116KH William E. Kring 950315KI Harold Berry 950320KJ PSTl2 unaca, New York $840,000.00 $840,000.00 William M. Smith ~I Linear Research Associates Kevin O'Kane 950320KM PSTl3 Kailua. Hawaii 50 840,000 $840,000.00 $840,000.00 Kaleidoscope Affiliates. LLC 960605KE Kailua 50. LLC 960723KR Mokupuni TV Communications 960723KS North American Broadcasting Company 961001LW Dixon Broadcasting, Inc. 961001LZ George S. Flinn. Jr. 96!001YE Winstar Broadcasting Corp. 961001YK PSTl4 Logan, Utah .. ,, v, •nlmann/Latshaw Broadcasting. LLC 941114KF Valley Channel Broadcasting. Inc. 950320KL PST15 !Manteo, North Carolina 4 1,180,000 $ l.180.000.00 $1,180,000.00 Danbeth Communications. Inc. 950519KE Commonwealth Broadcasting Group, Inc. 950814KP Lawrence F. & Margaret A. Loesch 950814KL Coastal Broadcasting Company, Inc. 950814KM Ray-D-0-Biz. Inc. 950814KH PSJ16 !Marquette, Michigan 19 320,000 $320,000.00 $320,000.00 Scanlan TV, Inc. 96011lKO Mario Iacobelli 960403KF Redwood Broadcasting, Inc. 960405KS Northern Michigan Family Broadcasting, Inc. 960405LM Winstar Broadcasting Corp. 960404KZ Barry Shapiro 9604052L D Missoula, Montana 17 160,000 $160,000.00 $160,000.00 Meridian Communications of Montana, Inc. 9601018KH Winstar Broadcasting Corp. 960404KQ Mountain Communications. Inc. 960405LZ Redwood Broadcasting, Inc. 960405KT Big Sky Television, Inc. 960405KX 10679 PST MX Bid din& Upfront Minimum CaeFilr Grous Location Chanml Units Payment Opening Bid Applicants Numkrs PSTl8 Norman, Oklahoma 46 1,240,000 Sl,240,000.00 Sl,240,000.00 KT Broadcasting. Inc. 960711KE ::vril H. Miller 961001KQ Prime Broadcastin2 Ccmmunications 961001LS North American Broadcaslin2 961001LU Cardinal Broadcas!ing Caro. 961001XP lllle Affiliates.IV ....... BPTTL·JG0601NM Las Veiras. Nevada SS VVI LPTV. Inc. BPTTL-980601 NS SSTS Shrevet>On. Louisiana 40 80,000 580,000.00 $80,000.00 Lou E. Jenkins. Jr. BPTTL-JG060 I DR Shrev~rt. Louisiana 40 Trinity Broadi:asrinR NC!Worlc BPTT-JG0601PU SST6 Melbourne. Florida 46 140,000 $140,000.00 $140,000.UI Jim J. Chladek BMPTT1.0 JG060IRW Melbourne. Florida 46 Jacksonville Educaron BroadcastinR BPTT·JG0601TF ssn aynes. Arizona 38 60,000 $60,000.00 $60,000.00 Mountain Swes Broadcasting. Inc. BMPTT 0 JG060l1A Tucson, Arizona 38 KTVW.lnc. BMPTTL0 JG060 IWG Tucson, Arizonll 38 La Luz Broadcastin11 BPTTL-98060 lTF ssn Tucson. Arizona so 60,000 $60,000.00 $60,000.00 Mountain States Broadcastin11:. Inc. BPTT·JG06011B Tucson. Arizona so Ponvland Broadcutin11: Co. BMPTTL0 JG0601JJ ISSTIO Tvla-,Texas 31 30,000 $30,000.00 $30,000.00 Warwick Communications. Inc. BPTTL·JG06011Y rrvlcr/Jacksonville. Texas 31 3 An11els Broadcastin11 NetWork. Inc. BPTTL0 JG060IZS SSTll Fon Mvcrs. Florida 18 60,000 $60,000.00 $60,000.0I Paxson Communieatioas LPTV, Inc. BPTT 0 JG060IAL Fon Mven. Florida 18 111cr Eve Broadcastin11: Com. BPTTL0 JG0601UE SSTl3 0utnanoo1ta. Tennessee SS 60,000 560.000.00 $60,000. Atlanta License. Inc. BPTT·JG0601AT level and. Tennessee S8 ~.GATV BPTT0 980601PY Tennessee SS Angels Broadcastin11 NetWork. Inc. BPTTL·980601UB SST14 Spokane, Washin1tton 42 80,000 $80,000.00 $80,000.LJL rowne Mountain TV BMPTTL0 JG060 IZK •nnkane. Washin1tton 43 West L?TV. Inc. BPTTL·980601MF SSTIS Santa Rosa. California 28 140,000 $140,000.00 $140,000.00 KDTV License .GP BPTTL·JG0601NT Lakcnon. California 28 °"' Lake Citv TV Club BPTTL·980601JK !Santa Rosa, California 2S °"' Chronicle Publishi1111 Co. BPTT·980601 UL SST17 Hanford. Connecticut 28 120,000 $120,000.00 $120,000.00 wxrv License Pmnc:nhip, GP BPTTL·JG0601 WV Hanford. Connecticut 28 Harvwd Broadcastina. Inc. BPTVL·980601JZ Hanford. Connecticur 28 :::H-13 TV. Inc. BPTVL0 980601RD SSTl8 Hanford. Connec:ticur 16 120,000 $120,000.00 5120,000.00 Harvard Broadcastin11. Inc. BMP1VL·980601KA Hanford. Connecticut 16 n. .... Communic:ations. Inc. BPlVL0 980601QZ SSTl9 Lawton, Oklahoma 49 20,000 $20,000.00 $20,000.00 3 Angels Broadcaslin11: Neiworlc. Inc. BPTTL-JG0601ZT Lawton. Oklahoma 49 Trinity Broadcastinir NetWork BP'IT·980601RC ssno Madison. Wisconsin 38 60,000 $60,000.00 $60,000.00 3 Angels Broallcastin11 NC!Worlc. Inc. BPTTL·980601VP Madison, Wisconsin 38 Trinitv Broadcastin11 Network BPTT0 980601ZN SST21 Glens Falls. New Yorlc 47 80,000 $80,000.00 SB0,000.00 Vision 3 Broadcastin11:. Inc. BPTVL·980601RQ Glens Falls. New York 47 T riniiv Broadcas1in11: Networlc BPIT0 980601ZU :Dan. Pennsylvania 26 80,000 $80,000.00 580,000.00 National Minority TV. Inc. BMPTT0 JG060IWL • Pennsylvania 26 Bob G. Neuhaus BPTVL·980601PA S olumbuslfrcmont. Nebraska 24 80.000 $80,000.00 $80,000.00 Glenda R. Harders BMPTI.L·JG060JDN Omaha. Nebraska 24 Paooas Telecastin11 of Midlands. Inc. BMPTT·JG0601TS Omaha, Nebraska 24 3 An12els Broadcaslin11 NetWork, Inc. BPTTL·JG060 IXA Omaha. Nebraska 24 Bill J. ThomPSon BPTTL·98060JPB Omaha, Nebniska 24 K. Sandoval Burke BPTTL0 980601PN SST24 Corpus ChriSli, Texas 32 20,000 $20.000.00 $20,000.00 KVOA Communicarions, Inc. BPTTL·JG0601XY Corpus Christi. Texas 33 OarkOniz BPTTL·980601PH Corpus Christi. Tex.as 32 Nicolas Communications Com. BPTTL·980601PK ssns Floresville. Texas 14 120,000 $120,000.00 s120.ooo.oo o.ouity Broadcastin11 Ccrp. BMPTTL·JG0601PA New Braunfels. Texas 14 ~ar1osOniz BMPTTL·980601PT San Antonio, Texas 14 3 An11els Broadcas1in11 Network. Inc. BPTTL·980601SM SSTI6 l.akeoon. California 2S 140,000 $140,000.00 s 140,000.00 inc Lake City TV Club BPTTL·98060JJJ Ukiah. California 25 TV Improvement Associarion BPTT·980601PW rsml an Antonio. Texas 47 1120.000 5120,000.00 s 120,000.00 Humbcno Looez BMPTTL·JG060JTJ La Vernia. Texas 46 Equity Broadcasrin11 Comoanv BMPTTL-98060 ION 10682 Bidding Location(s) Channel Units oST30 Tulsa. Oklahoma 19 80,000 Tulsa. Oklahoma 20 SST31 Bakersfield. California 20 20,000 Bakersfield. California 19 Bakersfield. California 19 15m31 Mt. Vernon. Indiana 23 60,000 Evansville. Indiana 23 15ST361 San Fernando Valley. Califomi1 26 140,000 Los Angeles, California 25 Encinitas, California 26 ISST381 Goldsboro. North Carolina 67 120,000 Goldsboro. North Carolina 67 15ST391 Birmingham. Alabama 46 120,000 Jamer, Alabama ~ SST40 ::::olleszedale, Tennessee : 60,000 ::::hanannnaa. Tennessee ~N~~ 39 5,000 ue. New Mexico 39 orth Carolina 24 120,000 North Carolina 24 SST44 North Bend. Washington S3 140,000 Seattle, W ashinl!lon S3 Point Pullev. Washinl!lon 53 SST46 Tamoa. Florida 36 140,000 ampa. Florida 36 1. Petersbur11, Florida 36 ork, New York 48 140,000 , New Jersey 48 eno, Nevada 39 0 eno. Nevada 39 oxville, Tennessee 28 I 80,0001 oxvillc, Tennessee 28 lando, Florida 16 140,000 "ssimmee, Florida 15 lando, Florida 15 corgia 49 I 5,0001 corgi a 49 oston, Massachusetts 40 1140,0001 oston. Massachusetts 40 outh Phoenix, Arizona 53 140,000 hoenix. Arizona 53 esa. Arizona 53 oronszo Vallev, California 36 5,000 ITwentv·nine Palms. California 36 SST58 ISan Antonio, Texas I 18 1120.0001 San Antonio. Texas 19 ISST591 Modesto, California 68 1~0,0001 Modesto, California 69 EllBrecksville, Ohio I 39 140.0001 Kirtland. Ohio 39 ISST6211San Antonio. Texas 59 120,0001 r1~1rT- 44 • Montana 16 16,000 • Montana 30 .Montana 31 E:luma. ~zona I 22 II 16,0001 Yuma, Arizona 22 ISST661 Las CNccs. New Mexico so 1120.0001 Las CNces, New Mexico so D Eagle Pass. Texas 38 120,000 Eagle Pass, Texas 38 Eagle Pass, Texas 38 Eagle Pass. Texas 38 Attachment A SST Upfront Minimum Payment Opening Bid $80.000.00 $80.000.00 $20,000.00 $20,000.0l $60.000.00 $60,000.00 $140,000.00 Sl40,000.00 $120,000.00 s120.ooo.oa Sl20,000.00 s120,ooo.oa $60,000.00 $60.000.UI. SS $120,000.00 $120,000.00 $140,000.00 Sl40,000.00 $140,000.00 $140,000.00 Si40,000.00 $140,000.00 $30,000.00 $30,000.00 Applicants Mollie Bowrinsz Anszcls Broadcastinsz Network. Inc. An11els Broadcastin!Z Network. Inc. rinity Broadcastin1t Network 'allev Public; Television. Inc. s. Central Communications Corp. Bethel Sanitarium Nonhridge Community Broadcasting Co. Attium Broadcasting Co. D Lindsev Communications Trinity Broadcastinsz Network rec Life Ministties. Inc. All American Network NMTY.lnc. Angels Broadcasting Network. Inc. ~.GA TV 0 I. Aucrustine's College An1tels Broadcastin11 Network. Inc. Tribune TV Holdinszs. Inc. 3 Angels Broadcasting Network. Inc. KIRO-TV Holdinszs Inc. Entravision Holdin11s, LLC ZGS TV of Tampa. Inc. Trinitv Broadcastin11 Network WKOB Communications. Inc. Craig L. Fox Trinity Broadcastin!Z Network Keith L. Lowery S. Central Communications Corp. $80,000.001 $80,000.001 rri11er Eve Broadcastin11 Coro. Sl40,000.00 Si40,000.00 Entravision Holdings. LLC ZGS Broadcastinsz. Inc. Chuck S. Namcv $5,000.001 $5,000.001 Paxson Communications LPTV. Inc. N.GA TV $140,000.001 $140.000.001 Paxson Communications LPTV. Inc. CH-19TVCorp. $140.000.00 $140,000.00 Paxson Communications LPTV. Inc. Word of God Fellowship, Inc. Steve L. Atwood $5,000.00 S5,000.00 City of San Bernardino Cc.unry Service Arca 70 TVS $120.000.001 $120,000.001 oc W. Shaffer San Antonio Broadcastin11 Coro. $140,000.001 $140,000.001 Tclemundo ofNorthem California T rinitv Broadcastin11 Network Sl40,000.00I $140,000.001 Gwen A. Christopher Trinity Broadcastin!Z Network Sl20,000.00I 5120,000.001 Lou Martinez Ed & Rosa Caballero $16,000.00 $16,000.00 Donna Loflin Victor T. Corbin oseoh Blau $16,000.001 Sl6,000.0011Ronald Amodia M!!!l'.E· Blake s120.ooo.001 5120,000.00I Lee Entemrises, Inc. Babv Boom Broadcastinsz Coro. 5120,000.00 5120,000.00 Deanna Hinojosa uan Ramon Ortiz Mike A. Mendoza Evanszelina Garcia Garza 10683 Case File Numbers BMPTTL-98060 I TH BPTT-980601VZ BPTIL-980601VG BPTT-980601ZL BPTT-JG0601TQ BPTTL-JG060 I IQ BPTTL-980601VX BPTTL·JG0601JI BPTTL·JG060 IJK BPTTL·JG060 I UR BPTT-JG0601VM BPTIL·JG060 IZN BPTT-JG0601PN BPTTL-JG0601VT BMPTVL-JG0601XE BPTT-980601NB BMPTT -JG060!XT BPTT-980601RW BMPTIL-98060 I TY BPTTL-98060 I VF BPTT-JG0601XJ BPTTL-98060 I VJ BPTT-980601YP BMPTTL-JG060 I MW BPTTL·JG060 ITC BPTT-980601ZS BPTTL·JG060 INK BPTTL·JG0601QE BPTT-JG0601PT BMPTTL-JG0601TI BPTT·JG060ISE BMPTTL-98060 I TT BPTTL·JG060 IJQ BMPTTL-JG0601TD BMPTTL-98060 UP BPTT-JG0601AM BPTT-JG060JNC BPTT-JG060JAQ BMPTTL-JG060 ITX BPTT-JG0601AX BPTTL-98060!PS BPTT-980601YD BPTT-JG0601DA BPTT-JG0601DI BMPTT·980601PJ BPTTL-980601QK BPTTL-JG0601 UW BPTT-980601SE BMPTVL-JG0601UH BPTT-98060 I WM BMPTTL-JG0601CF BMPTTL·JG060 I UG BPTTL-9404 lSZF BPTTL-JD0415DI BPTTL-JD0415RX :BPTTL-JE0415MT IBPTTL·940415GW I BPTT-96051704 BPTTL-960517YW BPTTL·GA0308WM BPTTL-GG0308SZ BPTTL-GG0308TZ BPTIL-GN0308UO MX Biddiar: Grou1 Localioa(t) Cua Ml Vaits SST68 Cathedral CilY. California S4 16.000 Desert HOI Sminizs.. California 54 ISST69 Doualas. Arizona 68 60.000 Siem ViS18. Arizona 68 Siem Visla. Arizona 68 Siem Vista. Arizona 68 SST70 RioGnndc Citv, Texas 34 30,000 Rio Grande Citv. Texas 34 Rio Grande Citv. Texas 34 IRio Grande Citv. Texas 34 Rio Grande Citv. Texas 34 !Rio Grande Citv. Texas 34 SST71 Brownsville. Texas 66 30.000 IHulinaen. Texas 66 Brownsville. Texas 66 Harlinaen. Texas 66 Brownsville. Texas 66 Brownsville, Texas 66 Brownsville, Texas 66 Brownsville. Texas 66 Brownsville. Texas 66 SST72 Floresville, T cxas 27 120.000 San Anronio. Texas 27 SST74 San Antonio. Texas S4 120.000 -" Vernia. Texas 39 SST75 Wichita Falls, Texas 42 20,000 Wichita Falls. Texas S1 ISST76 Rio Grande Citv. TCXllS 10 30,000 Rio Grande Citv, Texas 9 SST77 Ardmore, Oklahoma 48 16,000 Wichita Fills, Texas 48 Wichita Falls. Texas 63 SS178 Iowa Falls. Iowa 35 80,000 Des Moines. Iowa 3S SS179 Demin2. New Mexico 19 120,000 Silver Citv, New Mexico 19 Silver Citv, New Mexico 19 Silver Ciiv. New Mexico 19 Silver Citv. New Mexico 19 SilverCitv. New Mexico 19 SS TSO Aurnu:ta. Q......na 33 30.000 ohnston. South C11rOlina 33 AUIZUSI&, GcorJ!il 48 Auausra. Gconri1 33 Aftachment A SST Vpfro111 M.inimam Paymear OpaiiarBid Applicaats 516,000.00 516,000.00 lcharles Meeker Trinitv Broadcasri= Nccworl< $60,000.00 $60,000.00 Global Villue Video Resource Elimbedi Y. & Rohen S. Suffel llosc Castellanos .(icneric Television 530,000.00 $30,000.00 ~udilh Ann Acevedo Mike A. Mendoza DemimiHino;,,.,, !Juan Ramon Ortiz llo Ann"s Balloon Boutiaue. Inc. Evarisia Romero 530,000.00 530.ooo.nr Minoritv Communica1ions, Inc. Deanna Hinoiosa Hennelincla Rociri-~., Mike A. Mendoz:a esusGumwt l-\usrin B. Petersen Anthnnv T. Easton lsusan Euron Minverva Rodri-- Frias 5120,000.00 s120.ooo.oo la Vernia Chrisrillll Tcachina Center ln~iralion Television. Inc. 5120.000.00 s120.ooo.1111 -w.;., Broadcas:in" Com. I • V cmia Christian T eachincr Center 520,000.00 520.000.00 ~oriwa Slwfsrcin red Tadloc:k $30.000.00 ~.>u,rnn•~ ~u:a1 Television Service. Inc. Anancrin Tones $16,000.00 $16,000.00 !Tresa Hendrix Bmbua Shmfstcin erri Hmris $80,000.00 SB0,000.llll RSA Investment l B Shcld.shl $120,000.00 $120.000.00 en and Walt Green. Panncnhio Rural Television S""tcm. Inc. udilh Ann Accvido n,.;.,.,n. Hinoiosa Evaristn Romero Minerva RodrillDC% Frias 530,000.00 530,000.00 Rov S. Monamaa Dove Broadc:astin11. Inc. Dave lester Nichols Roberto A. PiDCT 10684 Cue File Numbers BPTTL-960S I 7KY BPTT-960517VD BPlTL-830308l 7 BPlTL-831012UZ BPTil.-8310 I 3PD BP111..-831013PI BP111..·840307PR BPTil.-84030820 BPTTL-AJ0305Pl BPTTL-GD0308ll BP111..-GU0308SC BP111..-Hl0308PG BP1Tl-810324JO BP111..-AJ0305NV BP111..-CA0306PV BP111..-GB0303PQ BPTTL-GD0308T A BPTTL-GF0308NX BPTTL-GM0308NM BP111..-GM0308NP BPTTL-KX0308VS BMPTTL-9605 I 7K I BMPTT-9605 I 7PN BP1Tl·960S16NY BMPTTL-960517PS BP1Tl-9404 ISL3 BP1Tl-9404 ISL6 BPTVL-820428RR BPTVL-840116R3 BPTTL-94041SFB BPTTL-94041SLS BPTTL-JE04 ISFC BMPTTL·960S ISKM BPTTL-960S 170Z BPTTL-820118TJ BPTTL-82032STV BPTTL-840307PN BP111..-AH030SMS BPTTL-GQ0308T A BPTTL-HD0308RN BPTTL-94041SDC BPTT-94041SHK BPTTL-JE041SAV BPTTL-JE04 ISHI Attas:hment A FM FM Radio Construction Permit Minimum Opening Bids and Upfront Payments MX Biddia& Upfroar Miaimam GroaD Locaeioa Cbuael VailS Paymar Oamin1:Bid ApDlicancs !'Ml Kasilof.AK 29SA 16,000 $16,000.00 Sl6,000.oc William John Glvnn, Jr. Klsilo( AK 29SA Kasilof Communic:uions. Inc. ~M2 lin!el!Sboro, AL 2S6A 16,000 $16,000.00 Sl6,000.111 Radio Sourh. Inc. Greensboro, AL 2S6A amcsWLawson .AL 256A Warrior Broadcarin11 Inc. Greensboro. AL 2S6A Aurlluaaville Radio Inc. r ........ cboro,AL 2S6A Pine Bell Broadcastin11: LLC ll'M.J Hentonville, AR 239A SS,000 SSS,000.00 SSS,000.1111 llEMB Comnanv, Inc. -.mvillc.AR 239A '."N!n.kee Broadcastinl! com- Bentonville. AR 239A ames Kennit Womack Bentonville.AR 239A Kimberly H....., Hendren FM4 Danville.AR 288A 16,000 Sl6,000.00 $16,000.00 Teclmoloov M11111_,,,.,,,1 Inc. Dmville.AR 288A DilineC.Thoma FMS DcsArc,AR 284A 16,000 $16,000.00 Sl6,000.1111 r ........ Ferrv Broiidcaslin11 DesArc. AR 284A Bobby Caldwell DesArc,AR 284A l(Oy E. Hcndenon/ Whippoorwill Creek DesArc.AR 284A "-S. Flinn. Jr. FM6 Earle.AR 280C3 2S,000 m.000.00 s2s,ooo.111 rinenden Broadcuring Inc. Earle. AR 280C3 Bobbv Caldwell Earle. AR 280C3 L.T. Simes 114 JUwnond Simes Earle. AR 280C3 Catherine Jouma FlilDI FM7 Nuhville.AR 24SA 16,000 $16,000.00 $16,000.00 Harold L SudtlllrY Jr. Nashville.AR 24SA emneranc:e BroadcasliDR Comnanv FM8 Duncan. AZ 264A 16,000 $16,000.00 Sl6,000.111 Kellv McMurrarv Duncan. AZ 264A William S. Knn.-.iclci FM9 Oro Valley, AZ 270A 2SO,OOO S2S0,000.00 S2SO,ooo.oo r._,,,e S FlilDI Jr. '1m Valley, AZ 270A Laurie Ann Haines lrn Vallev. AZ 270A Geonre W Kimble lrn Vallev. AZ 270A Farmworker Ed Radio Network Inc. lrn Valley, AZ 270A Arizona Lotus Com lm Valley, AZ 270A Hudson Communications Inc. lm Valley. AZ 270A !merman Brmdc:utin11 Oro Vallev Inc. nm Vallev. AZ 270A Ro.dio Oro Broedcutin11 .Jl'D Valley, AZ 270A Rova1 Broackastin11: Of Arizona. LLC FMIO Parker. AZ 230C3 16,000 Sl6,000.00 $16,000.ot; Wcstcm Broadc:astin11: Svstem Inc. Parlcer,AZ 230C3 Fannworker Ed Radio Network Inc. FMll Baker.CA 23SBI 16,000 Sl6,000.00 $16,000.00 JOSCDh G Cavallo Baker.CA 23SBI Rekab Broadcasting Baker.CA 23581 Lonnat Communications Gt> Baker.CA 23581 Poim Broadcasrin11 Cornn-., IR.H:er,CA 23581 KHWY,lnc. Baker.CA 23581 T onoisc Broadcastin11 Comn""" FM12 Huron.CA 2S2A 16,000 $16,000.00 Sl6,000.00 Point Broadcastin11 Com""nv Huron.CA 2S2A Your On Broadcastina FM13 !-.wood.CA 245A 25,000 S2S,000.00 s2s.ooo.uu OSCDh G Cavallo Lenwood.CA 24SA P~mBrmdcastin11Com"'"'v -""Wood, CA 245A Lormat Communications r.., Lcnwood.CA 24SA KHWVlnc. Lenwood.CA 245A onoisc Broadc:astiniz Comnanv FM14 Mcndora.CA 263A 16,000 $16.000.00 $16,000.00 Wilber Johnson Mcndou.CA 263A Mendota Broadcastina Comnanv FMIS Susanville, CA 242C3 25,000 S2S,OOO.OO S2S,000.00 Sicna Broadcastin11 Cnnvmotion Susanville. CA 242C3 Sunbelt Broadc:as1in11 ComlWIV FM17 Truckee, CA 268A 16,000 $16,000 $16,000 wine Country Radio Truckee.CA 268A ~eonre N Gillen Jr. Truckee.CA 268A :i1UYEWillson rTruckce. CA 261A Kidd Communications Truckee.CA 268A Ge""'e S Flinn Jr. T ruckc:c. CA 268A Poim Broadc:as1in11 Comn:mv Truckee. CA 26SA icrra Radio ComnAnV Truckee.CA 26SA fruckster Broadcastin11 FMIS Weaverville, CA 266A 16,000 Sl6,000.00 Sl6,000.Ull GCOllle S. Flinn. Jr. Weaverville. CA 266A Brian Edward Power Weaverville. CA 266A Pacific Nonhwest Communications 10685 C.-File Numben BPH·9SI013ME BPH·9Sll 13MC BPH·970S 14MC BPH·970S 14ME BPH-97051SMD BPH·970S ISMF BPH·970SISMG BPH·931008MA BPH·931012MA BPH·931012MB BPH·931012MC BPH·9SOS2SMN BPH·9SOS2SMU BPH·970806ME BPH·970806MJ BPH·970807M6 BPH·970807M7 BPH·9S 1017MO BPH·951017ME BPH·9SIOllMF BPH·9Sl019MF BPH·970120MD BPH·970&21MG BPH·9S 1024MA BPH·951031MC BPH·970724M2 BPH·970724M6 BPH·970724M7 BPH-970724M8 BPH·970724M9 BPH-970724MF BPH-970724MS BPH-970724NA BPH·970725MM BPH·971002ME BPH·971003ME BPH·97110SMC BPH·971107MC BPH·971107MG BPH·971107MP BPH·971107MS BPH·971107MX BPH·970S22ME BPH·970S22MF BPH·971 IOSMB BPH·971107ME BPH·971107MJ BPH·971107MV BPH·971107MW BPH·970904MD BPH-970904MI BPH·9Sll08MX BPH·9SI IO&NO BPH·971001MH BPH·971002MD BPH·971002MF BPH·971002MG BPH·971002MH BPH·971003MB BPH·971003MC BPH-971003MF BPH·970S06MA BPH·970S08MH BPH·970SOBMI MX Group Loc:adoa Cllaand FMl9 Willows.CA 292A Willows.CA 292A Willows.CA 292A Willows.CA 292A FM20 raia. CO 273C Craig. CO 273C K:raiR. co 273C K:rai11. co 273C ~M21 !lnlcns. CO 227C2 Dolores.CO 227C2 Dolores.CO 227C2 Dolores. co 227C2 Dolores. co 227C2 FM2.Z Glenwood Sprin115. CO 238A Glenwood Sllrin11s. CO 238A Glenwood Springs. CO 238A Glenwood Snrin .... CO 238A Glenwood Sprin115. CO 238A FM23 Limon.CO 229A ~imon.CO 229A FM24 Salida. CO 229C3 Salida. CO 2290 Salida. CO 229C3 FM2S Wellington. CO 232C3 Wcllin111on. CO 232C3 Wcllin111on. CO 232C3 Wellin111on. CO 232C3 Wcllin111on. CO 2320 Wellington. CO 232C3 WcllinRlon. CO 232C3 FM26 SclDVVillc. DE 2SOA Selbvvillc. DE 2SOA Sel1>vville. DE 2SOA ~7 BainbridJZC. GA 270A Bainbridge. GA 270A Bainbrid11c. GA 270A FM28 Cusseta. GA 279A Cusscu.. GA 279A FM29 Pelham.GA 222A Pelham.GA 222A FM30 A""n.o GU 270C2 Aaan•,GU 270C2 A11lnll.GU 270C2 A Rov E. Henderson OBA Dri11as Broadcastin11 Co. Ted W Austin Jr. 16,000 Sl6,000.00 $16.000.00 DBM Entcnainmcnt En!CllJriSCS Inc. Michael Radio Group Franklin Broadcastin11 Inc. 10686 Case File Namben BPH-961022ME BPH-961023MI BPH-961024MG BPH-96102SMB BPH-970404MH BPH-970407MS BPH-970407MX BPH-970407MY BPH-970922MB BPH-97092SMK BPH-97092SMT BPH-97092SMW BPti-97092SNG BPH-970820MC BPH·970820MG BPH-970820MR BPH-970821MF BPH-970821 MK BPH-970108MF BPH-970109MB BPH-970722MD BPH-970724MY BPH-970724NB BPH·961127MD BPH·961127MF BPH-961129MC BPH-961129MD BPH·961129MJ BPH-961129MK BPH·961202ME BPH·860917MD BPH·ll609180V BPH0 860918NY BPH-971I18MA BPH0 971120ME BPH·971120MH BPH-930701ME BPH·930701MG BPH0 93 I IOSMA BPH·931108MC BPH0 970403MA BPH-970404ME BPH·970404MF BPH0 970407MZ BPH-9Sl 120MF BPH0 9S I 120MI BPH·9S1121MM BPH-970108MD BPH-970109MC BPH·970109MD BPH·960221MC BPH0 960222MB BPH·960222MD BPH·9Sl027MC BPH·9Sll08MQ BPH-97080SMC BPH·970806MD BPH·970807MO BPH·970807M3 BPH·970807MS BPH-970808MJ BPH0 970814MJ BPH·970814MM BPH·970814MT MX Biddia& Groui Location Claaimel Unia FM37 Idaho Falls. ID 296A 55.000 hdaho Falls. ID 296A Idaho Falls. ID 296A ldabo Falls. ID 296A Idaho Falls. ID 296A Idaho Falls. ID 296A Idaho Falls. ID 296A Idaho Falls. ID 296A Idaho Falls. ID 296A FM38 Orofino.ID 253A 16.000 Omfino.10 2S3A FM39 Pocatello. ID 221A 55,000 Pocatello, ID 22JA Pocatello. ID 221A Pocatello. ID 221A Pocatello. ID 221A 1Poca1ello. ID 221A Pocatello, ID 221A FM40 Sun Vallev. ID 298C 20.000 IStm Vallev. ID 298C Sun Vallev. ID 298C IStm Vallev. ID 298C FM41 rrwin Falls. ID 2S2CI 60,000 rrwin Falls. ID 252CI rrwin Falls, ID 252CI Twin Falls. ID 252CI Twin Falls. ID 2S2CI Twin falls. ID 252CI Twin Falls. ID 252CI Twin Falls. ID. 252CI Twin Falls. ID 252Cl Twin Falls. ID 252CI FM42 Victor, ID 222A 16.000 Victor. ID 222A Victor. ID 222A FM43 Victor. ID 282A 16,000 Victor. ID 282A Victor.ID 282A Victor. ID 282A FM44 Weston, JD 240A 16,000 Weston. ID 240A Weston.IO 240A FM45 Brccsc. IL 248A 16.000 Breese. IL 248A Breese. IL 248A FM46 Earlville. IL 27.5A 16,000 l:arlville. IL 275A Earlville. IL 275A Earlville. IL 275A Earl\ille. IL 275A rFM47 Fai-wv. IL 29981 25,000 Fail'lllll'V. IL 299BI Fairt.wv. IL 299BJ Fairhurv. IL 29981 Fairburv. IL 29981 Fairl>UIV. IL 299BI FM48 !Galatia. IL 255A 2.5.000 Galatia. IL 2SSA Galatia. IL 2.55A FM50 LcxinRtan. IL 258A 2.5.000 LexinRton. IL 258A Lcxin11ton. IL 2.58A Lcxin11ton. IL 258A LcxinRton. IL 258A LexinRton. IL 2S8A Lcxin111on. IL 258A Lexin111on. IL 2.58A Lexin111on. IL 2.58A Attachment A FM Upfront Mi11imum Payment o-;qBid Annlicana 5S5.000.00 sss.ooo.nc ll11111esW Fox Rik. S Mcdi1 lmennan Broadcastina Idaho Falls. IRhvr Broadc:astinsz Inc. $16,000.00 $16,000.00 Todd St11m1 Noonlvk lndi1111 River Broadc:astinR Comrumv Phillio J Robbins $16,000.00 $16,000.00 1cny Pmenfuss Sorenson Broadc:aslinR Corp. amcs D. lnastad IGreslorv D. Gcntlinsz. Jr. $16,000.00 $16,000.00 R &. J Broadc:astinst ChristODhcT A Bcnrier $16,000.00 $16.000.00 Minnesota Christian Broadcasters Inc. Carol J. Delahunt Robcn J. Ramstorf $16,000.00 $16,000.00 Kandi BroadcastinR Lvnn C Ketelsen Lac Qui Parle Broadcasting Co Inc. Paul 0 Estcnson $25,000.00 s2s.ooo.ac Mks Broadcas1in11 Inc. David L. Sheoherd oscph W. & Donna M. Bollinger $25,000.00 $25,000.00 Galen 0 Oilben American Media Investments Inc. Harbit Communications, LLC $25,000.00 S2S,000.0C Vi1111ds Entel'!lriscs. Inc. D. Ramsey &. B. Vancil. A Oral Ptnrsh Georize S Flinn Jr. $16.000.00 $16,000.00 Twenty-One Sound Communications Inc. Chirillo Electronics Inc:. James C. &. Ruth Ann Mace 10688 Case File Numbers BPH-9610 I 7MB BPH-961017ME BPH-961017MG BPH-961017MN BPH-960821 MD BPH-960823ME BPH·970923MB BPH-97092SMV BPH-97092SNE BPH-97092SNJ BPH-96102SMC BPH·961025MD BPH·961028MC BPH·961028MD BPH·9S0926MC BPH-9Sl002MK BPH·951003MA BPH-971014MF BPH·971021MD BPH-971023MF BPH·971023MH BPH-950720MB BPH-9S0720MC BPH-9S0720MQ BPH-&20409AB BPH-820901A W BPH-970909MH BPH-970909Ml BPH·970910MX BPH-97091 IMB BPH-97091 IM4 BPH·970717MA BPH-97071 ?MB BPH·970717ME BPH·970717MH BPH·970730MK BPH-970731Ml BPH-9Sl013MA BPH-9Sl016MB BPH·970922ME BPH-970925MG BPH-97092SMY BPH·971203MB BPH-971204MC BPH-971204MD BPH-971203MF BPH-970910Ml BPH-97091 IMQ BPH-9S0601MA BPH-9S0612MH BPH·9S0612M?ll BPH-970212MF BPH-970213MA BPH-970213MD BPH·970213ME BPH-950720MD BPH·9S0721MC BPH-9S0724MD BPH-9710 JOME BPH·971105MD BPH-971 IOSME BPH·970708MA BPH-970708MB BPH·970709ME BPH-960S02ME BPH-960S02MG BPH·960S08MC MX Groas 1-lllioa Cbuacl FM72 Clarksdale. MS 221A '"larksdalc. MS 221A '"lllricsdalc. MS 221A FM73 Jn:envillc. MS 284C2 Greenville. MS 284C2 Greenville. MS 284C2 Greenville. MS 284C2 Greenville. MS 284C2 ureenvillc. MS 284C2 r-·11e.MS 284C2 FM74 ,_,,,. MS 222A Grenal a.MS 222A Grenal a.MS 222A FM7S Gttnatla. MS 267A Gren.odlL MS 267A •M76 Hattieshunr. MS 226A Hani...i..nr. MS 226A FM77 Sardis. MS 271A Sardis. MS 271A IFM78 Swc ColleRe. MS 283C3 Swe Collee. MS 283C3 Siare CollCl!c. MS 283C3 Staie College. MS 283C3 State College. MS 283C3 FM79 Belanu1c. MT 2S6A Belcrrade.MT 256A Bellllade. MT 2S6A Bellll'lllle.MT 2S6A FMBO Bozeman.MT 278CI Bozeman.MT 27SCI Bozeman.MT 278CI FMBI "asc:ade. MT 28SC Cascade.MT 28SC Cascade. MT 28SC Cascade. MT 28SC FM82 an... Falls, MT 262C Great Falls, MT 262C Gn.at Falls. MT 262C :-...,,.1 Falls. MT 262C r.-.t Falls. MT 262C FMB3 Great Falls. MT 297CI Great Falls. MT 297CI :in!At Falls, MT 297CI :m.at Falls. MT 297CI FM84 Bilanore Forest. NC 243A Bilanorc Forest. NC 243A Biltmore Forest. NC 243A Bilanore Forest, NC 243A .......... Biltmore Forest. NC 243A LJIBluff. NC 287A Bluff, NC 287A Bluff. NC 287A FM86 Robbins. NC 276A Robbins, NC 276A Robbins, NC 276A Robbins. NC 276A FM87 >outhem Shores. NC 26SC2 ISouthem Shores. NC 26SC2 FM88 HoPC. NO 284A H""".ND 284A FM89 Blair. NE 247C3 Blair.NE 247C3 Blair. NE 247C3 Blair, NE 247C3 Blair. NE 247C3 Bid dins Vaib 25.000 60.000 16.000 16.000 ss.ooo 16.000 2s.ooo 16,000 60.000 60.000 60.000 60,000 Attacbmegt A FM UpfroDI Minimum Pay-I OpeniacBid Annlicaaa S2S.000.00 s2s.ooo.oo Bethel Communications Jr'cll C. Shurden Della Blues BroadcaslinR S60.000.00 560.000.00 M•- Adele Karr Mondv-Burke Broadcasting Neiwork Mid-America Broadcasling Co. Inc. Cari Como T111cra r D Communications Inc. Delia Radio Inc. Paul Gardner. Jr. Sl6.000.00 $16,000.ain S60,000.00 S60,000.00 Frank K St>ain Steven D. Dow Michele A. Doss F &: S Broadcasrinsr 560,000.00 560,000.00 Dallas Tarkenton Michael R Walton Jr. Swtbrook Communications Inc. EB Needles LLC Geor11e S Flinn Jr. S60.000.00 $60,000.00 EB Needles. LLC Swtbrook Commwtications Inc. Carl Como Tuten. Staradio Cmpomion 130.000 Sl30.000.00 $130,000.00 Liberty Productions. A Limited Pannership Willsyr Communications Llmiled Partnership Biltmore Forcsa Broadcasrinsr FM. Inc. s1!Bl A Amanrosa V allev Broadcasters $16,000.00 $16,000. Wells & Malt Noire JN Milton Bozanic Pahrumo Vallev Broadcasters, Inc. Ramona Lee Hvcs·Bell $55,000.00 $55,000.00 Lakewood Broaclcastin11 Comoration Breakthrullh Commam OfUewd. NY. Inc. Lakewood Communications. Inc. Newman Communications. Inc. Maniac Commamic:ations $16,000.00 $16,000.00 Lake Cities BroadcasrinJr C"""""tion David L Memmer J. Rodacr Skinner. Jr. Proizrcssive Broadcastino System Inc. UDDcrVille Broadcasting Richard H. Heibel Burbach Broadcasting Company SSS,000.00 SSS,000.00 Maillet Media Inc. In Phase BroadcastinR. Inc. Lancer Media Burbach Broadc:astintr Commonv Pon Wine BroadcastinR S2S.OOO.OO S2S.OOO.OO D. Robert Eddv Maumee Valley BroadcastinR Inc. $25,000.00 S2S,000.00 Sherman Taft Hill Jr. X L Grouo Inc. Buddv & Carolvn CUT. JT Tenants Christian Faith Broadcast, Inc. Lenawee Broadcaslin11 Comnanv Midwes1em Broadcastin11 Comllllav. Inc. Nobcolnc. $25,000.00 $25,000.00 Oara Inc. Chuckic Broadcsting Company Con1ours Inc. Redwood Broadc:astinR. Inc. $16,000.00 $16,000.01 KinJlfishcr County Broadcastin1t Inc. Ken D. Shuba1 $60,000.00 $60,000.00 DFWU.lnc. Linlc Dixie Radio, Inc. 10690 Cue File Numbers BPH-970728MH BPH-970730MF BPH-970730MG BPH-970731MJ BPH-970731 MM BPH-970731 MO BPH-970731MV BPH-97073 IMW BPH·96 ll 15MG BPH·961J18MI BPH·961I18M3 BPH·961118MF BPH·96l 118MH BPH·96l 118MK BPH·970728MI BPH·970730MH BPH-97073 IMH BPH·970731MN BPH·97073 IMT BPH·97073 IMZ BPH·971016MF BPH·971016ML BPtl-971016MM BPH-970702MI BPH·970703MA BPH·951002ML BPH·95 l102MB BPH·95 l102MC BPH·95 l102MD BPH·930525MD BPH·930527ME BPH·930527MG BPH·930S27MH BPH·930528MC BPH·97020SMD BPH·970211 MF BPH·970213MC BPH-97021 BMD BPH·970218MF BPH-970218MG BPH·970218MO BPH·970910MH BPH·9709JOMT BPH-97091 IMX BPH-97091 lMY BPH·970911MZ BPH·9S0308ME BPH·950309MC BPH·9S 1106MB BPH·95 I 108MD BPH·95 l IOBML BPH-9Sl108MN BPH·9S I IOSMW BPH·951109MD BPH-951109MI BPH·970819MA BPH-970819MB BPH·970820MF BPH-970821 MM BPH·9709JOML BPH-97091 IMS BPH·960826MM BPH-960826MQ MX Group Loearioa Cbaud FMI05 Bend.OR 259A Bend. OR 259A Bend.OR 259A Bend.OR 2S9A Bend.OR 259A Bend.OR 2S9A Bend.OR 259A Bc:nc1. OR 259A Bend. OR 2S9A FMI06 Klamath Falls. OR 284CI Klamadi Falls. OR 284CI Klamath Falls. OR 284CI Klamath Falls. OR 284CI Klamath Falls. OR 284CI FMl07 n•e Dalles. OR 2240 n.e Dalles. OR 2240 FMI08 C"""""'town.PA 299A C"nnnenrown.PA 299A :::oo,_.,town. PA 299A "MI09 Fairview. PA 230A Fairview. PA 230A Fairview. PA 230A Fairview. PA 230A Fairview. PA 230A Fairview, PA 230A Fairview. PA 230A ~MllO Pocono Pines. PA 290A Pocono Pines. PA 290A Pocono Pines, PA 290A FMlll !South Waverlv, PA 241A ISouth Wavedv, PA 241A South Waverlv. PA 241A FMll2 Belle Fourche. SD 271C3 Belle Fourche, SD 271C3 Belle Fourche. SD 271C3 FMll3 1aemncBid Aaalica11a 530.000.00 $30,000. S fliM,Jr. Michael Ferriimo 5mnmit Radio LLC Oak T rec Broadcastin2 Ramslev Lcasiog. Inc. !Simmons Familv. Inc. Andrew And. Julia Bemlwd Ted Austin. Jr. 516,000.00 516,000.00 Keith A Mavo &: Chih Pinir M..,,, Island Broadcutinir ComDllllV Inc. s..i .. uro Broadcastinir 516,000.00 516,000.00 Williun Parlc:cr Meacham Mainauad Communic:arions. Inc. Sinclair Telccable. Inc. ettrev Lee Stone $130,000.00 $130,000.IHI Richmond Broadcastinir. Inc. .mnr D. Jones. Sr. Allan D. Mckelvie MBS Communications Emick Commmrirv Broadcasrinsz Inc. ITTlomas P. Benns Paul A. &: Leslev S. Bulifant Vinrinia Piedmont Broadcastin11 Compa 516.000.00 $16,000.00 uconze S. Finn. Jr. ohn Cruma OBA ~ Communications Mainowul Broadcasting. Inc. David W. ,_._,. FM 100,lnc. ohn D Strelitz Qualirv Radio Partners Huben N Hoflinan Jr. Land Of Gooch Broadcastin11 sss.000.00 SSS,000.oc David A Rawlev. Jr. Knioht V.l. Radio c ...... Huleacr Russell Huah Pcmbenon ose J A ....... aa &: Juan G Padin $25,000.00 $25,000.00 Lord. Brian J. Michael F. &: Brid11et T. Andlacr .ionia Piha Inc. S2S,000.00 525,000.00 ..amonica Media. LLC !Mio Palouse. Inc. tob Allen Hauser $16,000.00 516.000.00 esulis Broadcas1in11 Of Shawano Inc. Ravmond I Cal Charles P Mills $16,000.00 516,000.00 BSound WIGM.lnc. Lawrcace A Busse Atlantis Broadcas1i1111 Co., LLC PhilliPS Broadcasting Co., Inc. :::on1inental Ca11iral B!Casting Corp. SSS,000.00 5SS,000.00 Ganske&: Munson Leon Met%/Thomas 5,,,.;a.,1 $16,000.00 516,000.00 Finl Conareoational Services David &. Lvnn Mamumfe Dod11c•Poin1 BroadcastinR Co .• Inc. S2S.OOO.OO 52s.ooo.oo Renee A. Ciske ::JJarles P. Mills Michael R Walton Jr. Ourlook Communica1ions Inc. n... Patten Corpora1ion Pearline Williams Fairh Congrega1ion Frederick W Kinlow Anlhony J Gazzana &. Gregory S Marcus Kenle Moraine B/Castina Co .. Inc. Ravmond I Cal 10692 Case File Numben BPH·971I19MA BPH·971I19MB BPH-9711201\.IC BPH-9711201\.IG BPH-971120MI BPH·971120MJ BPH-971120ML BPH-9711211\.IC BPH·970910MW BPH·970114MP BPH-97091 INE BPH·9S 1107MD BPH·9S 1108MP BPH·9SI IOIMS BPH·951109MJ BPH-950512ME BPH·9SOS ISMA BPH·950S ISMB BPH·9SOS ISMC BPH0 9SOS ISMD BPH·950SISME BPH·9SOS ISMH BPH·9SOS 16MC BPH-970604MG BPH·970604MH BPH-970604MI BPH·970604MJ BPH·970604MK BPH·97060SMC BPH·97060SMD BPH·97060SME BPH-970606MD BPH·970Sl3MF BPH·970S 14MB BPH·970514MD BPH·970SISMC BPH·970SISME BPH-9707111\.1£ BPH-970716MC BPH·970716MG BPH·960909MA BPH-9609111\.1£ BPH·960912MO BPH·970723MJ BPH·970723MP BPH-970724ND BPH-96061 IME BPH·960612MJ BPH·960612MK BPH·960613MH BPH-960613MI BPH·960614MG BPH-9S0608MD BPH-9S0612MM BPH·971030MK BPH-971030ML BPH·971030MM BPH·970818MA BPH·970819MD BPH·970820ME BPH-97082 IMB BPH·970821MC BPH-97082 IME BPH·970821MH BPH·970821MI BPH·970821MJ BPH·970821ML BPH·970822MB MX Biddiai Graap Location Cbllllllel Uaits FMl36 Neilsville. WI 224A 16,000 Neilsville. WI 224A FMl37 Nekoosa. WI 281A 16,000 Nekoosa. WI 218A Nekoosa. WI 288A FMIJS •-.wt 292A 16.000 ·-.w1 292A •-.w1 292A ;_.,w1 ·292A FMl40 Willimnsrown. WV 24.5A 2.5.000 Willi111nstown, WV 24.5A WillimnlltOWD. WV 245A WiDimnslOWll,WV 24.5A WillillllSlown. WV 245A FM141 Uillctrc. WY 249A 2S,000 •lleae. WY 249A Dial-Up Adapter and click Properties. d. Click the DNS Configuration tab. e. Select Enable DNS. Type bidder in the Host box, type fee.gov in the Domain box, then type 165.135.22.249 in the DNS Server Search Order box and click the Add button. f. Click OK on the TCP/IP Properties windows, then click OK on the Network windows. If you are prompted to restart your computer, click Yes to restart, then begin the Dial-Up Procedure. Dial-Up Procedure If the Dial-Up Networking window is not currently open, do the following: 1. a. Click the Windows 95/98 Start button. b. Click the Programs option to display the Programs menu. c. Click the Accessories option to display the Accessories menu. d. In Windows 95, click Dial-Up Networking In Windows 98, click Communications, then Dial-Up Networking. The Dial-Up Networking window appears. 10709 2. In the Dial-Up Networking window, double-click the FCC Auctions 800# or FCC Auctions 900# icon. Note: If you connect to the FCC's 900 number telephone service, there is a charge of $2.30 per minute. The first minute of connection time to the 900 number service is at no charge. 3. Click the Connect button on the window. Do not enter User name and Password. The Connection window appears, indicating the status of your connection as your modem dials into the system. This window must remain running during your dial-up session. You may minimize the window, if you wish. If your modem fails to establish a connection, please see the Troubleshooting section below. 4. Once the connection is established, open your Web browser. 5. In your browser's Location field, enter the appropriate Universal Resource Locator (URL) as follows: • For FCC Form 175 Submit, enter http://wtbwww04.fcc.gov (primary location) or http://wtbwww34.fcc.gov (secondary location) • For the FCC Remote Access System, enter http://wtbwww03.fcc.gov (primary location) or http://wtbwww26.fcc.gov (secondary location) If nothing appears in your Web browser, please see the Troubleshooting section below. 6. When you have finished, exit the Web browser, then click the Disconnect button on the Connection window to end your dial-up session. Troubleshooting Following are problems you may encounter and possible solutions for resolving or isolating them. Modem does not respond 1. Confirm that all physical connections for the modem are present. 10710 2. Confirm that the phone line is active by connecting it to a telephone and checking for a dial-tone. 3. If you are dialing the 900 number service, check for a 900 number telephone block. If the volume settings are low, the modem may be dialing but not connecting. Check for this by trying to connect to the 800 number, or by dialing the 900 number on that line using a telephone. 4. Confirm that the correct modem driver is installed for your modem. Modem dials but does not connect 1. If you are dialing the 900 number service, check for a 900 number telephone block. Check for this by dialing the 800 number to see if y~u connect, or by dialing the 900 number on that line using a telephone. 2. Confirm that the number the modem is dialing is correct. 3. Confirm that the modem prefix, if any, is correct. 4. Reconfigure Dial-Up Networking to use the backup 900 number, as described under "Accessing FCC Sites In Case ofDNS Problems" in the attachment titled How To Monitor the FCC Auctions On-Line. Modem dials and connects, but nothing appears when you enter the Location in the Web browser I. Verify the Dial-Up Networking settings specified in the Configuring Dial-Up Networking section. 2. Confirm that your Web browser is not using proxies: a) On your browser, click the Preferences option in the Edit menu. b) In the Category area at the left, double-click Advanced. c) Click the Advanced structure's Proxies option. d) Click the radio button labeled Direct connection to the Internet. e) Click the OK button at the bottom of the window. Receive an Internal Server error in t/ie Web browser 1. Confirm that the Location is correct. 10711 2. Confirm that Java and JavaScript are enabled in your Web browser, and confirm that Cookies is set to Accept All. Help For technical assistance with installing or using FCC software, 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 a.m. to~ p.m. ET. All calls to the FCC Technical Support Hotline are recorded 10712 ATTACHMENTF FCC REMOTE BIDDING SOFTWARE ORDER FORM Closed Broadcast Auction Qualified bidders have the option to electronically participate in the auction bidding process by. using the FCC Remote Bidding Software. The FCC auction system will accept electronic bids only from bidders who have obtained the software. (Since bidding software is tailored to a specific auction, software from prior auctions will not work for Auction 25.) · The FCC Remote Bidding Software includes a user manual. To order, complete the form below and return no later than 5:30 p.m. ET on Friday, August 20, 1999, to: FCC Bidding Software, Auction No. 25 . Auction Operations Branch 1270 Fairfield Rd. Gettysburg, PA 17325-7245 FAX: 717-338-2850 For security purposes, software packages will be sent with other registration materials only to the contact person at the applicant address specified on the FCC Form 175. NO EXCEPTIONS. Auction Applicant:----------------------- FCC Assigned Account No.-----------Phone:------- Fax: ____________ Fax Modem No.----------- Type: 3.5 diskette CD-Rom 10713 ATTACHMENT G SUMMARY LISTING OF DOCUMENTS FROM THE COMMISSION AND THE WIRELESS TELECOMMUNICATIONS BUREAU ADDRESSING APPLICATION OF THE ANTI-COLLUSION RULES All of the following documents can be found at an FCC web site: http://www.fcc.gov/wtb/auctions/collusio/collusio.html Commission Decisions: Second Report and Order in PP Docket No. 93-253, FCC 94-61, 9 FCC Red. 2348, 2386-2388 (1994), paragraphs 221-226. Fifth Report and Order in PP Docket No. 93-253, FCC 94-178, 9 FCC Red. 5532, 5570-5571 ( 1994 ), paragraphs 91-92. Fourth Memorandum Opinion and Order in PP Docket No. 93-253, FCC 94-264, 9 FCC Red. 6858, 6866-6869 (1994). paragraphs 47-60. Second Memorandum Opinion and Order in PP Docket No. 93-253, FCC 94-215, 9 FCC Red. 7245, 7253-7255 (1994), paragraphs 48-?,5. Memorandum Opinion and Order in PP Docket No. 93-253, FCC 94-295, 9 FCC Red. 7684, 7687-7689 (1994), paragraphs 8-12. In re Commercial Realty St. Pete, Notice of Apparent Liabili'ty for Forfeiture, 10 FCC Red. 4277 (1995); In re Commercial Realty St. Pete, Memorandum Opinion and Order, 11 FCC Red. 15374 (1996). In re Applications of Mercury PCS II, LLC, Notice of Apparent Liability for Forfeiture, 12 FCC Red. 17970 ( 1997) (petition for partial reconsideration pending). Amendment of Part 1 of the Commission's Rules -- Competitive Bidding Procedures, Allocation of Spectrum Below 5 GHz Transferred from Federal Government Use, 4660-4685 MHz, WT Docket No. 97-82, ET Docket No. 94-32, FCC 97-413, Third Report and Order and Second Further Notice of Proposed Rule Making, 13 FCC Red. 374, 463-469 (1997), paragraphs 155- 166. In re Application of US West Communications, Inc., Notice of Apparent Liability for Forfeiture, FCC 98-41 (March 16, 1998). In re Application of Western PCS BT A I Corporation, Notice of Apparent Liability for Forfeiture, FCC 98-42 (March 16, 1998). 10714 Wireless Telecommunications Bureau Decisions: Amendment of Parts 21and74 of the Commission's Rules with Regard to Filing Procedures in the Multipoint Distribution Service and in the Instructional Television Fixed Service, Order, 11 FCC Red. 9655 (Wireless Tel. Bur. 1995). In re Applications of GWI PCS, Inc. For Authority to Cons~c~ and Operate Broadband PCS Systems Operating on Frequency Block C, Memorandum Opinion and Order, 12 FCC Red. 6441 (Wireless Tel. Bur. 1997). In re Applications of Mercury PCS Il, LLC, For Facilities in the Broadband Personal Communications Services in the D, E, and F Blocks, Memorandum Opinion and Order on Reconsideration, 12 FCC Red. 18093 (Wireless Tel. Bur. 1997). · In the Matter of Applications of High Plains Wireless, L.P ., For Authority to Construct and Operate Broadband PCS Systems on Frequency Blocks D, E, and F, Memorandum Opinion and Order, 12 FCC Red. 19627 (Wireless Tel. Bur. 1997). In the Matter of Applications of Mercury PCS Il, LLC, For Authority to Construct and Operate Broadband PCS Systems on Frequency Blocks D, E, and F, Memorandum Opinion and Order, 13 FCC Red. 5756 (Wireless Tel. Bur. 1997). Public Notices: "Wireless Telecommunications Bureau C~arifies Spectrum Auction Anti-Collusion Rules," Public Notice, 11 FCC Red. 9645 (1995): "FCC Staff Clarifies Application of Anti-Collusion Rule to Broadband PCS 'C' Block Reauction," Public Notice, 11 FCC Red. 7031 (1996). "Wireless Telecommunications Bureau Provides Guidance on the Anti-Collusion Rule for D, E and F Block Bidders," Public Notice, 11 FCC Red. 10134 (1996). Letters from the Office of General Counsel and the Wireless Telecommunications Bureau: Letter to Gary M. Epstein and James H. Barker from William E. Kennard, General Counsel, Federal Communications Commission (released October 25, 1994). Letter to Alan F. Ciamporcero from William E. Kennard, General Counsel, Federal Communications Commission (released October 25, 1996). Letter to R. Michael Senkowski from Rosalind K. Allen, Acting Chief, Commercial Radio Division, Wireless Telecommunications Bureau (released December 1, 1994). Letter to Leonard J. Kennedy from Rosalind K. Allen, Acting Chief, Commercial Radio Division, Wireless Telecommunications Bureau (released December 14, 1994). Letter to Jonathan D. Blake and Robert J. Rini from Kathleen O'Brien Ham, Chief, Auctions Division, Wireless Telecommunications Bureau, DA 95-2404 (released November 28, 1995). Letter to Mark Grady from Kathleen O'Brien Ham, Chief, Auctions Division, Wireless Telecommunications Bureau, 11 FCC Red. 10895 (1996). - Letter to David L Nace from Kathleen O'Brien Ham, Chief, Auctions Division, Wireless Telecommunications Bureau, 11 FCC Red. 11363 (1996). · 10715 Letter to Elliott J. Greenwald from Christopher J. Wright, General Counsel, Federal Communications Commission (released April 6, 1998). Civil Actions Initiated by U.S. Department of Justice: U.S. v. Omnipoint Corp., Proposed Final Judgements and Competitive Impact Statements, Department of Justice, 63 FR 65,228 (November 25, 1998). "Justice Department Sues Three Firms Over FCC Auction Practices," Press Release, U.S. Department of Justice (November 10, 1998). Complaint, U.S. v. Omnipoint Corp., No. 1 :98CV02750 (D.D.C. November 10, 1998). Complaint, U.S. v. Mercury PCS II, L.L.C., No. 1:98CV02751 (D.D.C. November 10, 1998). Complaint, U.S. v. 21st Century Bidding Corp., No. 1:98CV02752 (D.D.C. November 10, 1998). Miscellaneous: Many of these documents can be retrieved from the FCC web site (http://www.fcc.gov/wtb/auctions/collusio/collusio.html), where documents may be located by using our search engine (select the link "search"). All of these documents can be ordered in hard copy from the Commission's contractor, International Transcription Service, Inc. at (202) 857- 3800. Documents retrieved from the FCC web site are available in more than one format: .pdf, .txt, and .wp. (The key to the extensions is the following: .pelf= Acrobat Reader, .txt =Text, and .wp =Word Perfect.) In order to review a document in its entirety, including footnotes, it is necessary to access the document in Word Perfect or Acrobat Reader. 10716 ATTACHMENT H FCC AUCTION SEMINAR REGISTRATION FORM The Closed Broadcast Auction The FCC will sponsor a one day seminar for the Closed Broadcast Auction applicants. The seminar is free of charge and will provide information about pre-auction procedures, service and auction rules, conduct of the auction, and the FCC remote bidding software. Space is limited. A maximum of two representatives from each company may attend on a reservation basis, first-come first-served until room capacity is filled. Additional seating may be available on a stand-by basis the day of the seminar. The seminar will be held: Tuesday, August 3, 1999 Federal Communications Commission Commission Meeting Room 445 - 12th Street, S. W. Washington, DC 20554 Registration 9 a.m. -10 a.m. Seminar 10 a.m. • 4 p.m *********************************** To register, complete the form below and return no later than July 26, 1999, by mail or fax to: FCC Auction 25 Auctions Operations Branch 1270 Fairfield Road Gettysburg, PA 17325-7245 FAX: 717-338-2850 Phone:717-338-2888 I I We will attend the Closed Broadcast Auction seminar on Tuesday, August 3, 1999: Name of attendee:--------------------------- Name of attendee:--------------------------- Company name: ---------------------------~ Phone: ~--------------- Fax: ------------~ 10717