PUBLIC NOTICE 
FEDERAL COMMUNICATIONS COMMISSION 
1919 M STREET, N.W. 
News Media lnformati9n: (202) 418-0500 
Fax-On-Demand: (202) 418-2830 
Internet: http://www.fee.gov 
ftp.fee.gov WASHINGTON, D.C. 20554 
DA 99-405 
March 8, 1999 
Location and Monitoring Service 
Auction Closes 
Winning Bidders in the Auction of 528 Multilateration Licenses 
in the Location and Monitoring Service 
Down Payments Due March 22, 1999 
FCC Form 601s Due March 22, 1999 
Ten-Day Petition to Deny Period 
Report No. AUC-21-1 (Auction No. 21) 
On March 5, 1999, the Federal Communications Commission completed the auction of 
528 multilateration Location and Monitoring Service (LMS) licenses, raising (in net high bids) 
a total of $3,438,294.00 for the U.S. Treasury. 4 winning bidders won a total of 289 LMS 
licenses. 
This public notice provides detailed information concerning winning bidders, down 
payments, bid withdrawal payments and/or deposits, FCC Form 601 filing requirements, 
requests for rule waivers, and licensing matters. Key information appears in the following 
attachments: 
Attachment A: 
Attachment B: 
Lists the winning bidders, the licenses won by each winning 
bidder, and both the gross and net high winning bid amounts. 
Lists the down payments and any withdrawn bid payments owed 
by winning bidders. 
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Attachment C: 
Attachment D: 
Attachment E: 
Attachment F: 
Lists withdrawn bid payments owed by all bidders. 
Provides detailed information about how winning bidders should 
complete their required FCC Form 601 for LMS license 
applications. 
Provides instructions for registering and filing the FCC Form 
601 electronically. 
Provides instructions for accessing the FCC Network using 
Windows 95/98. 
A copy of this public notice will be sent via overnight mail to each winning bidder. 
Down payments. The Commission's rules require that within ten business days after 
the release of this public notice, in this case, by 6:00 p.m. ET on March 22, 1999, winning 
bidders in the LMS auction must have on deposit with Mellon Bank in Pittsburgh, 
Pennsylvania, enough funds to cover all required: (1) down payments on winning bids, and 
(2) payments for withdrawn bids. If a bidder's upfront payment is not sufficient to meet both 
of these requirements, the bidder must deposit additional funds. See 4 7 C.F .R. § 1.2107 (b). 1 
The amount now due from each bidder, if any, is set out in the last column of 
Attachment B. Note that only if a bidder's upfront payment covers the required total of 
down payments and withdrawn bid payments (as reflected in Attachment B) is no payment or 
FCC Form 159 necessary at this time. Each bidder's down payment must be a total of 
twenty ·(20) percent of its net winning bid(s) plus any withdrawal payments. 
Final payments. After the termination of the licensing pleading cycle (see 47 C.F.R. 
§ 1.2108), the Commission will issue a public notice announcing that it is prepared to grant 
the licenses. Within ten business days after the date of that public notice, winning bidders 
will be required to make full payment of the balance of their winning bids. See 47 C.F.R. §§ 
1.2109 and l.2107(b). Licenses will be granted only after final payment is made. 
Method of payment. All payments must be in U.S. dollars and made in the form of a 
wire transfer. No personal checks, credit card payments, or other forms of payment will be 
accepted. All payments must be accompanied by a completed FCC Remittance Advice Form 
(FCC Form 159).2 A partially completed copy of the FCC Form 159 will be sent to each 
In the event a bidder has withdrawn a bid(s) and is subject to a bid withdrawal payment(s), the bidder's 
upfront payment will be first applied to satisfy the withdrawal payment(s) before being applied toward its down 
payment. 
2 Copies of the FCC Form 159 may be obtained by calling the Commission's Forms Distribution Center 
at 1-800-418-3676 (outside Washington, D.C.) or 202-418-3676 (in the Washington area). Copies of the FCC 
Form 159 can also be obtained via the Internet (http://www.fcc.gov/formpage.html) or by Fax-On-Demand (202-
418-2830). 
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winning bidder within three (3) business days following release of this public notice to 
facilitate submission of the correct down payment. Winning bidders that have not received 
the partially completed FCC Form 159 by that date should contact Geoffrey ldika at 202-418-
1995. However, winning bidders are ultimately responsible for the verification and 
submission of the correct down payment. 
Wire transfer payments must be received by Mellon Bank by 6:00 p.m. ET, on 
March 22, 1999. Bidders should coordinate with their bankers ahead of time regarding their 
wire transfers, and allow sufficient time for the wire transfer to be initiated and completed 
prior to the deadline. To submit funds by wire transfer, bidders will need the following 
information: 
ABA Routing Nwnber: 043000261 
Receiving Bank: Mellon Pittsburgh 
BNF: 911-6106 
OBI Field: (Skip one space between each information item) 
"AUCTIONP A Y'' 
TAXPAYER IDENTIFICATION NO. (same as FCC Form 159, Block 25) 
PAYMENT TYPE CODE (same as FCC Form 159, Block 20A: "ALMU") 
FCC CODE 1 (same as FCC Form 159, Block 23A: "21 ") 
PAYOR NAivlE (same as FCC Form 159, Block 2) 
LOCKBOX NO. 358850 
Bidders 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). 
Proper completion of the FCC Form 159· is critical to ensuring correct credit of 
bidder deposits. Bidders must use the same Taxpayer Identification Number used on 
their FCC Form 175. Questions concerning the calculation and submission of down 
payments should be directed to Gail Glasser at 202-418-1995. 
Withdrawal, default and disqualification payments. The Commission will impose 
payments on bidders that withdraw high bids during the course of an auction, or that default 
on paynients due after an auction closes, or that are disqualified. A bidder that withdraws a 
high bid during the course of .an auction is subject to a payment equal to the difference 
between the amount withdrawn and the amount of the subsequent winning bid. In the case of 
a license not selling in the same auction, the withdrawal payment is based on the selling price 
the next time the license is offered by the Commission. If the withdrawn bid amount was 
subject to a bidding credit, the bid withdrawal payment would be either the difference 
between the net withdrawn bid and the subsequent net winning bid, or the difference between 
the gross withdrawn bid and the subsequent gross winning bid, whichever is less. No 
withdrawal payment is assessed if the subsequent winning bid exceeds the withdrawn bid. 
This payment amount is deducted from any upfront payments or down payments that the 
withdrawing bidder has deposited with the Commission. See 47 C.F.R. 1.2104(g)(l). In 
those cases where the amount of the withdrawal payment cannot yet be determined because 
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there was no subsequent winning bid, the withdrawing bidder is required to make a three (3) 
percent deposit on the net amount of the withdrawn bid on the license(s). Implementation of 
Section 3090) of the Communications Act-Competitive Bidding, PP Docket No. 93-253, 
Fifth Report and Order, 9 FCC Red 5532, 5563 at n. 51 (1994); C.H. PCS, Inc., Order, 11 
FCC Red 22430 (Wireless Tel. Bur., 1996) (requiring a three percent deposit for default 
payments). When it becomes possible to calculate and assess the payment, we will notify 
these bidders. As discussed above, a bidder's upfront payment will first be applied toward its 
withdrawn bid payment. 
If a high bidder defaults or is disqualified after the close of the auction, the defaulting 
bidder will be subject to the same payment obligations as described above, plus an additional 
payment equal to three (3) percent of the subsequ~nt winning bid. If the subsequent winning 
bid exceeds the defaulting bidder's bid amount, the three (3) percent payment is calculated 
based on the defaulting bidder's bid amount. If either bid amount was subject to a bidding 
credit, the three (3) percent credit will be calculated using the same bid amounts and basis 
(net or gross bids) as in the calculation of the payment for withdrawn bids prior to the close 
of the auction. See 4 7 C.F .R. 1.2104(g)(2). Results of the auction indicate certain bidders 
may be in violation of the Commission's Rules for this service, and disqualified from holding 
one or more licenses. See 47 C.F.R § 90.353. 
If a winning bidder fails to remit the required down payment within ten (10) business 
days after the Commission has declared competitive bidding closed, in this case, March 22, 
1999, the bidder will be deemed to have defaulted, its application will be dismissed, and it 
will be liable for a default payment as described above. In such event, the Commission, at its 
discretion, may either auction the spectrum to existing or new applicants, or offer it to the 
other highest bidders (in descending order) at their final bids. See 47 C.F.R. l.2109(b). 
If a winning bidder fails to pay the balance of its winning bids in a lump sum by the 
applicable deadline as specified by the Commission, it will be allowed to make payment 
within ten (10) business days after the payment deadline provided that it also pays a late fee 
equal to five (5) percent of the amount due. When a winning bidder fails to pay the balance 
of its winning bid plus late fee by the late payment deadline, it is considered to be in default 
on its license(s) and subject to the applicable default payments. Licenses will be awarded 
upon the full and timely payment of winning bids and any applicable late fees. See 4 7 C.F .R. 
§ l.2109(a). A winning bidder that is found unqualified to be a licensee, fails to remit the 
balance of its winning bid in a timely manner, or defaults, or is disqualified for any reason 
after having made the required down payment, will be deemed to have defaulted and will be· 
liable for the payment set forth in § l.2104(g)(2). In such event, the Commission may either 
auction the spectrum to existing or new applicants or offer it to the other highest bidders (in 
descending order) at their fmal bids. See 47 C.F.R. § l.2109(c). 
Finally, bidders that are found to have violated the antitrust laws or the Commission's 
rules in connection with their participation in the competitive bidding process may be subject, 
in addition to any other applicable sanctions, to forfeiture of their upfront payment, down 
payment, or full bid amount, and may be prohibited from participating in future auctions. See 
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47 C.F.R. l.2109(d). 
Attachment B identifies bidders that owe withdrawal payments to the Commission. 
Refund of excess upfront payments (for winning bidders). Upfront monies on 
deposit which are in excess of the required down payment, withdrawal and/or default payment 
amounts will be refunded to the payor of record promptly upon receipt of the necessary wire 
transfer instructions. Winning bidders must fax the necessary wire transfer instructions to 
Geoffrey ldika at 202-418-2843. Any questions concerning refunds should be referred to 
Geoffrey ldika at 202-418-1995. 
Refund of upfront payments (for non-winning bidders). Non-winning bidders must 
fax the necessary wire transfer instructions to Geoffrey Idika at 202-418-2843. Any questions 
concerning refunds for non-winning bidders should be referred to Geoffrey ldika at 202-418-
1995. 
FCC FORM 601 
By 5:30 p.m. ET on March 22, 1999, winning bidders must submit completed long­
form license application( s) covering each license for which they were the winning high 
bidder. Applications must be filed electronically. Attachment D sets out instructions for 
completing the FCC Form 601. This form replaces FCC Form 600 in conjunction with our 
development of the new universal licensing system for filing and processing of applications in 
wireless services. 
Electronic filing. Detailed instructions for registering and filing the Form 601 
electronically are set out in Attachment E. 
Failure to timely file FCC Form 601 will result in dismissal of the application. 
Applications for multiple licenses. Filers applying for multiple licenses are not 
required to submit a separate Form 601 application for each market if all filing requirements 
associated with the application (name and address information, all ownership and eligibility 
attachments, and waiver requests) are identical except for the market designator, channel 
block and market name (for the LMS auction, this would be the LMS geographic area license 
designator; for example, BEAOOl--Bangor, ME). Under these circumstances, applicants may 
submit one FCC Form 601 Main Form and Schedule B. 
·Filers whose name and address, ownership, eligibility, and waiver requests are 
identical for some licenses but different for others may utilize this streamlined filing 
procedure only for those licenses that have identical filing information. For those licenses 
with unique information, a separate application must be submitted. 
Application processing and license grant. Pursuant to 47 C.F.R. § l.2108(b) and the 
Balanced Budget Act of 1997, Pub. L. 105-33, 111 Stat. 251 (1997), interested parties will 
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have ten (10) days after the Commission gives public notice that the FCC Form 601s are 
acceptable for filing to file petitions to deny. An applicant may file an opposition to any 
petition to deny within five (5) days after the time for filing petitions to deny has expired. 4 7 
C.F.R. § l.2108(c). The petitioner may file a reply to such opposition within five (5) days 
after the time for filing oppositions has expired. 47 C.F.R. § l.2108(c). If the Commission 
determines that an applicant is qualified and there is no substantial and material issue of fact 
concerning that determination, it will grant the application. 
Anti-collusion rules. To ensure the competitiveness of the auction process, the 
Commission's Rules prohibit applicants for the same geographic license area from 
communicating with each other during the auction about bids, bidding strategies, or 
settlements. This prohibition begins with the filing of short-form applications, and ends on 
the down payment due date. To comply with this rule, bidders competing for the same 
license(s) are encouraged not to use the same individual 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/she is authorized to represent in the auction. Also, if the 
authorized bidders are different individuals employed by the same organization (e.g., law firm 
or consulting firm), a violation could similarly occur. In such instances, the Bureau strongly 
encourages applicants to certify on their applications that precautionary steps (e.g., 
establishing a "Chinese wall") have been taken to prevent communication between authorized 
bidders and that applicants and their bidding agents will comply with the anti-collusion rule. 3 
The Bureau, however, cautions that merely filing a certifying statement as part of an 
application will not outweigh specific evidence that collusive behavior has occurred nor will it 
preclude the initiation of an investigation when warranted. 4 In the LMS auction, for example, 
the rule would apply to applicants bidding for the same Economic Area. Therefore, 
applicants that apply to bid for "all markets" would be precluded from communicating with all 
other applicants after filing the FCC Form 175. However, applicants may enter into bidding 
agreements before filing their FCC Form 175 short-form applications, as long as they disclose 
the existence of the agreement(s) in their Form 175 short-form applications.5 By signing their 
FCC Form 175 short form applications, applicants are certifying their compliance with Section 
l.2105(c). In addition, Section 1.65 of the Commission's Rules requires an applicant to 
maintain the accuracy and completeness of information furnished in its pending application 
and to notify the Commission within 30 days of any substantial change that may be of 
See, e.g., "Wireless Telecommunications Bureau Responds to Questions About the Local Multipoint 
Distribution Service Auction," Public Notice, 13 FCC Red 341 (1998); In re Application of Nevada Wireless for 
a License to Provide 800 MHz Specialized Mobile Radio Service in the Farmington, NM-CO Economic Area 
(EA-155) Frequency Band A. Memorandum Opinion and Order, 13 FCC Red 11973, 11977,, 11 (1998) 
(''Nevada Wireless''). 
4 See Nevada Wireless, 13 FCC Red at 11978,, 13 (1998). 
See 47 C.F.R. § l.2105(c). 
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decisional significance to that application.6 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. 
Post-Auction Forum. The Wireless Telecommunications Bureau will sponsor a joint 
post-auction forum for bidders that participated in the LMS auction, as well as bidders in the 
concluded VHF Public Coast and Phase II 220 MHz Service auctions. This forum will be 
announced by a forthcoming public notice. The purpose of this forum is to receive feedback 
from bidders on the auctions process and their experience. In addition, bidders are 
encouraged to use this forum to present specific recommendations for improving the 
operational components of the auctions process. Among the general topics to be discussed are 
. information dissemination, application processing and payment, and the overall conduct of the 
auction. Key FCC staff will be available to answer questions. 
* * * * * 
6 See 41 C.F.R. § 1.65. 
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For further information, contact: 
News Media: 
Technical Support Hotline: 
Meribeth McCarrick at 202-418-0654 
Technical Support Personnel 
at 202-414-1250 (V) 
or 202-414-1255 (text telephone (TTY)) 
Office of the Managing Director Regina Dorsey, Gail Glasser or 
(Payment, FCC Form 159 and refund questions) Linwood Jenkins at 202-418-1995 
Wireless Telecommunications Bureau, 
Commercial Wireless Division 
(FCC Form 601 questions) 
Wireless Telecommunications Bureau, 
Auctions and Industry Analysis Division 
(Auction-related questions) 
Linda Chang at 202-418-7240 
Kathy Garland at 717-338-2801, 
Bob Reagle or Ken Burnley at 202-
418-0660. 
-FCC-
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