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218 Auction 901 Winning Bids Ready to be Authorized

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Released: November 25, 2013

PUBLIC NOTICE

Federal Communications Commission
445 12th St., S.W.

News Media Information 202 / 418-0500

Internet: http://www.fcc.gov

Washington, D.C. 20554

TTY: 1-888-835-5322

DA 13-2248
November 25, 2013

MOBILITY FUND PHASE I SUPPORT

FOR 218 WINNING BIDS READY TO BE AUTHORIZED

Listed Auction 901 Winning Bidders Must Submit Letters of Credit and

Legal Counsel’s Opinion Letters by December 10, 2013

By this Public Notice, the Wireless Telecommunications Bureau and Wireline Competition
Bureau (“Bureaus”) announce they are ready to authorize Mobility Fund Phase I support for the Auction
901 winning bids identified in Attachment A of this Public Notice. To be authorized to receive the
support listed in Attachment A, the winning bidder identified in that attachment is required to submit for
each of its specified winning bids an acceptable irrevocable stand-by letter of credit (LOC) and
Bankruptcy Code opinion letter from its legal counsel in accordance with the instructions provided below
by the applicable deadline – 6:00 p.m. ET on December 10, 2013.
On October 3, 2012, the Commission announced the 795 winning bids and associated winning
bidders in the Mobility Fund Phase I Auction 901 and established the deadline for winning bidders to
submit their long-form applications for Mobility Fund Phase I support.1 For each of the winning bids
identified in Attachment A, the Bureaus have reviewed the long-form application. Based on the
representations and certifications in each relevant long-form application, the Bureaus are prepared to
authorize support, subject to submission of the required LOC and Bankruptcy Code opinion letter in
accordance with the “GCI Order,”2 for the winning bids identified in Attachment A.3
Pursuant to Section 54.1005(b)(3)(v) of the Commission’ rules, no later than 10 business days
after the Commission releases a public notice identifying winning bidders that may be authorized to
receive Mobility Fund Phase I support, such winning bidders must submit an irrevocable stand-by LOC,
issued in substantially the same form as set forth in the model LOC provided in Appendix N of the

1 Mobility Fund Phase I Auction Closes; Winning Bidders Announced for Auction 901, AU Docket No. 12-25,
Public Notice, DA 12-1566, 27 FCC Rcd 12031 (2012) (Auction 901 Closing Public Notice).
2 In the Matter of GCI Communication Corp. Waiver of Section 54.1007(1) of the Commission’s Rules, DA 13-
2222 (rel. Nov. 21, 2013 (GCI Order).
3 See 47 C.F.R. § 54.1005(b)(3)(v).

USF/ICC Transformation Order4 by a bank that is acceptable to the Commission.5 Separate LOCs must
be submitted for the authorized winning bids pursuant to the GCI Order in an amount equal to one-third
of the winning bid amounts, plus an additional 10 percent of the winning bid amounts which, in the event
of a performance default, shall serve as the performance default payment.6
The Commission’s rules list specific requirements, as defined in section 54.1007(a)(1), for a bank
to be acceptable to the Commission to issue the LOC.7 Those requirements vary for United States banks
and non-U.S. banks. In addition, a winning bidder is required to provide with the LOC an opinion letter
from legal counsel clearly stating, subject only to customary assumptions, limitations and qualifications,
that, in a proceeding under the Bankruptcy Code, the bankruptcy court would not treat, under section 541
of the Bankruptcy Code, the LOC or proceeds of the LOC as property of the winning bidder’s bankruptcy
estate, or the bankruptcy estate of any other bidder-related entity requesting issuance of the LOC.8
By future public notice, the Bureaus will authorize support for specific winning bids for which all
requirements, including submission of the LOC and opinion letter, have been met.
Details concerning the next steps are set forth below.

Instructions for Submission of Letter of Credit and Opinion Letter

The winning bidder identified in Attachment A of this Public Notice must submit LOCs and an
opinion letter pursuant to the GCI Order for the winning bids identified in Attachment A. The amount
required for each winning bid is identified in Attachment A.
The original of the LOCs and opinion letter must be submitted to the Universal Service
Administrative Company by the applicable deadline – 6:00 p.m. ET on December 10, 2013, at the
following address: Mobility Fund LOC, USAC, 2000 L Street, Suite 200, Washington, DC 20036. We
recommend that each winning bidder send the original of the LOC and the opinion letter by means of
delivery requiring signature.
A copy of the LOC and opinion letter must also be submitted in the FCC Auction System by the
applicable deadline. An applicant must provide this required information in two attachments. The LOC
attachment should be designated as “Letter of Credit” and the opinion letter attachment should be
designated as “Opinion Letter.” Each attachment must be uploaded within the applicant’s long-form
application to each relevant winning bid identified in Attachment A of this public notice.

Failure to File Constitutes an Auction Default


4 Connect America Fund, WC Docket No. 10-90, Report and Order and Further Notice of Proposed Rulemaking,
FCC 11-161, 26 FCC Rcd 17663, 18319 Appendix N (USF/ICC Transformation Order).
5 47 C.F.R. §§ 54.1005(b)(3)(v), 54.1007(a)(1).
6 47 C.F.R. § 54.1007.
7 Id. See also Mobility Fund Phase I Waiver of Section 54.1007(a)(1) of the Commission’s Rules, WC Docket No.
10-90, Order, DA 12-1747, 27 FCC Rcd 13457 (2012).
8 11 U.S.C. § 541; see 47 C.F.R. § 54.1007(b).
2

Any winning bidder identified in Attachment A that fails to file the required documents9 for any
of the identified winning bids by the applicable deadline – 6:00 p.m. ET on December 10, 2013 – will be
in default on such bid(s) and will be subject to an auction default payment.10 Agreeing to such payment
in event of a default was a condition for participating in bidding.11 In the event of an auction default, a
default payment of five percent of the total defaulted bid will be assessed.12

Further Information Contact:

FCC Technical Support

Technical assistance in filing a Form 680 is
available at (877) 480-3201, option nine; (202) 414-
1250; or (202) 414-1255 (text telephone (TTY));
hours of service are Monday through Friday, from
8:00 a.m. to 6:00 p.m. ET. In order to provide
better service to the public, all calls to Technical
Support are recorded.

News Media

Wireless Telecommunications Bureau

Cecilia Sulhoff at (202) 418-0587

General Universal Service Information

Wireline Competition Bureau,
Telecommunications Access Policy Division

Alex Minard at (202) 418-7400

Auction 901 Information

Auctions and Spectrum Access Division

General Auction Information, Process, and
Lisa Stover or Debbie Smith at (717) 338-2868
Procedures
Post-Auction Rules, Policies, and Regulations
Lynne Milne at (202) 418-0660

Tribal Issues

Office of Native Affairs and Policy

Additional information for entities seeking to
(202) 418-2930
provide service to Tribal lands and Tribal
native@fcc.gov
governments

Accessible Formats

Consumer and Governmental Affairs Bureau

Braille, large print, electronic files, or
(202) 418-0530 or (202) 418-0432 (TTY)
audio format for people with disabilities
fcc504@fcc.gov

FCC Internet Sites

http://www.fcc.gov
http://wireless.fcc.gov/auctions
http://wireless.fcc.gov/uls

9 47 C.F.R. § 54.1005(b)(3)(v).
10 47 C.F.R. §§ 1.21004, 54.1005(b); see USF/ICC Transformation Order, 26 FCC Rcd at 17808 ¶ 436, 17814 ¶ 460-61.
11 USF/ICC Transformation Order, 26 FCC Rcd at 17813-14 ¶¶ 458-460.
12 Mobility Fund Phase I Auction Scheduled for September 27, 2012; Notice and Filing Requirements and Other
Procedures for Auction 901, AU Docket No. 12-25, Public Notice, DA 12-641, 27 FCC Rcd 4725, 4776-77 ¶¶ 184-
88 (2012).
3

This Public Notice contains the following Attachment:
Attachment A: Ready to Authorize Winning Bidders and Bids
-FCC-
4

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