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26 Auction 901 Winning Bids Ready to be Authorized

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Released: June 12, 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 13-1359
June 12, 2013

MOBILITY FUND PHASE I SUPPORT

FOR 26 WINNING BIDS READY TO BE AUTHORIZED

Listed Auction 901 Winning Bidders Must Submit Letters of Credit and

Legal Counsel's Opinion Letters by June 26, 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 bidders identified in that attachment are required to submit
for each of their specified winning bids an acceptable irrevocable stand-by letter of credit (LOC) and
Bankruptcy Code opinion letter from their legal counsel in accordance with the instructions provided
below by the applicable deadline 6:00 p.m. ET on June 26, 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, for
each of the winning bids identified in Attachment A.2
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
USF/ICC Transformation Order3 by a bank that is acceptable to the Commission.4 A separate LOC must

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 See 47 C.F.R. 54.1005(b)(3)(v).
3 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).
4 47 C.F.R. 54.1005(b)(3)(v), 54.1007(a)(1).

be submitted for each winning bid in an amount equal to one-third of the winning bid amount, plus an
additional 10 percent of the winning bid amount which, in the event of a performance default, shall serve
as the performance default payment.5
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.6 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.7
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

Winning bidders identified in Attachment A of this Public Notice must submit a separate LOC
and opinion letter for each winning bid identified in Attachment A. The amount of the LOC for each
winning bid is also identified in Attachment A.
The original of the LOC and opinion letter must be submitted to the Universal Service
Administrative Company by the applicable deadline 6:00 p.m. ET on June 26, 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

Any winning bidder identified in Attachment A that fails to file the required documents8 for any
of the identified winning bids by the applicable deadline 6:00 p.m. ET on June 26, 2013 will be in
default on such bid(s) and will be subject to an auction default payment.9 Agreeing to such payment in

5 47 C.F.R. 54.1007.
6 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).
7 11 U.S.C. 541; see 47 C.F.R. 54.1007(b).
8 47 C.F.R. 54.1005(b)(3)(v).
9 47 C.F.R. 1.21004, 54.1005(b); see USF/ICC Transformation Order, 26 FCC Rcd at 17808 436, 17814 460-61.
2

event of a default was a condition for participating in bidding.10 In the event of an auction default, a
default payment of five percent of the total defaulted bid will be assessed.11

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

10 USF/ICC Transformation Order, 26 FCC Rcd at 17813-14 458-460.
11 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

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