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Auction 96 (H Block) Winning Bidder

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Released: February 28, 2014

PUBLIC NOTICE
Federal Communications Commission

News Media Information 202 / 418-0500

445 12th St., S.W.

Internet: http://www.fcc.gov

Washington, D.C. 20554

TTY: 1-888-835-5322

DA 14-279
February 28, 2014

AUCTION OF H BLOCK LICENSES IN THE 1915-1920 MHz AND

1995-2000 MHz BANDS CLOSES

WINNING BIDDER ANNOUNCED FOR AUCTION 96

FCC Forms 601 and 602 Due March 14, 2014

Final Payments Due March 28, 2014

Ten-Day Petition to Deny Period

I.

INTRODUCTION

1.
On February 27, 2014, the Federal Communications Commission (“Commission”)
completed an auction of 176 H Block licenses in the 1915-1920 MHz and 1995-2000 MHz bands, which
was designated Auction 96. An aggregate reserve price of $1.564 billion was established for Auction 96.1
The total winning bids in Auction 96 equaled the reserve price. This auction raised a total of
$1,564,000,000, with one bidder winning a total of 176 licenses.

II.

AUCTION RESULTS

2.
This Public Notice provides detailed information concerning winning bidders, down
payments, final payments, refunds, FCC Forms 601 and 602 filing requirements, and licensing matters.
Key information appears in the following attachments:

Attachment A:

“Winning Bids” lists the winning bidder and its total winning bid
amounts.

Attachment B:

“Bidder Payment/Refund” lists down payments and final payments owed
by the winning bidder and refunds due to other applicants.2

Attachment C:

“Withdrawal Payment Report” lists bid withdrawal payments owed by
bidders, if any.

1 See Auction of H Block Licenses in the 1915-1920 MHz and 1995-2000 MHz Bands Scheduled for January 14,
2014; Notice and Filing Requirements, Reserve Price, Minimum Opening Bids, Upfront Payments, and Other
Procedures for Auction 96, AU Docket No. 13-178, Public Notice, DA 13-1885, 28 FCC Rcd 13019, 13064 ¶ 172
(2013) (Auction 96 Procedures Public Notice).
2 The amounts listed in Attachment B are based on upfront payments and net winning bids.


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Attachment D:

“Instructions for Completing FCC Form 601 and FCC Form 602”
provides detailed information about how a winning bidder should
complete the required long-form application (FCC Form 601) and
ownership disclosure report (FCC Form 602) for H Block licenses won
in Auction 96.
A copy of this Public Notice will be sent via overnight delivery to each qualified bidder.
3.
Concurrent with the release of this Public Notice, the Commission is making available
information previously withheld under the limited information procedures for Auction 96. Results files
that include the identities of bidders and the net amounts of bids are now available on the web page for
Auction 96 (http://wireless.fcc.gov/auctions/96) and in the FCC Auction System
(http://auctions.fcc.gov/). The limited information results files (without the identities of bidders and the
net amounts of bids) remain available on the web page for Auction 96. Additionally, the publicly-
available applications to participate in the auction (FCC Forms 175) now display the licenses that were
selected by each applicant as well as any application exhibits that may have been suppressed during the
auction. The applications are viewable in the FCC Auction System via the Auction Application Search
(https://auctionfiling.fcc.gov/form175/search175/index.htm).

III.

POST-AUCTION PAYMENTS AND REQUIREMENTS

A.

Down Payments

4. 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. Eastern Time (ET) on March 14, 2014, each winning bidder in
Auction 96 must have on deposit with the Commission enough funds to cover the down payment(s) on its
winning bids.3 Specifically, each winning bidder’s total deposit must be twenty percent of the aggregate
net amount of its winning bids. The winning bidder’s upfront payment is sufficient to meet this
requirement, so it need not deposit additional funds to meet its required down payment.4

B.

Final Payments

5.
The winning bidder will be required to submit the balance of the net amount of its
winning bid(s) as set out in the “Final Balance Due by March 28, 2014 or (Refund)” column of
Attachment B.5 The winning bidder must pay the full amount of the Final Balance Due shown in
Attachment B by 6:00 p.m. ET on March 28, 2014 (or by 6:00 p.m. ET on April 11, 2014, along with
the five percent late fee required by section 1.2109(a) of the Commission’s rules), even if the winning
bidder plans to apply for a tribal lands bidding credit.6 Full and timely payment of winning bids and any
applicable late fees must be made in accordance with section 1.2109(a) of the Commission’s rules and
must occur before action will be taken upon the winning bidder’s long-form application (FCC Form
601).7 Specifically, licenses will be granted only after the full and timely payment of winning bids and
any applicable late fees, in accordance with section 1.2109(a).8

3 47 C.F.R. § 1.2107(b).
4 Id.
5 47 C.F.R. § 1.2109(a).
6 Id.
7 Id. A winning bidder that is found unqualified to be a Commission licensee will be deemed to have defaulted, its
application will be dismissed, and it will be liable for the payment set forth in section 1.2104(g)(2) of the
Commission’s rules. See 47 C.F.R. §§ 1.2104(g), 1.2109(c).
8 47 C.F.R. § 1.2109(a).
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6.
Wire transfers of final payments must be received by the Commission by 6:00 p.m. ET
on March 28, 2014 (or by 6:00 p.m. ET on April 11, 2014, along with the five percent late fee required
by section 1.2109(a) of the Commission’s rules).9 If the winning bidder fails to complete the final
payment, consistent with the payment method described in this Public Notice, by 6:00 p.m. ET on March
28, 2014 (or by 6:00 p.m. ET on April 11, 2014, along with the five percent late fee) it will be in default.10
7.
An applicant’s request for a tribal lands bidding credit has no effect on the applicant’s
obligations to make any auction payments, including down and final payments, due before the award of
the credit.11 If a request for a tribal lands bidding credit is approved, the amount will be calculated and
awarded prior to license grant.12

C.

Method of Payment for Final Payment

8.
All payments must be in U.S. dollars and made in the form of a wire transfer.13 No
checks, credit card payments, automated clearing house (“ACH”), or other forms of payment will be
accepted. Each payment must be accompanied by a completed FCC Form 159.14 A partially-completed
copy of FCC Form 159 for the final payment will be sent to the winning bidder to facilitate submission of
the correct payments.
9.
Any final payment must be preceded by an accurate and complete FCC Remittance
Advice Form (FCC Form 159). At least one hour before placing the order for the wire transfer (but on the
same business day), the winning bidder must fax the completed FCC Form 159 to U.S. Bank in St. Louis,
Missouri, at (314) 418-4232. Proper completion of the FCC Form 159 is critical to ensuring correct credit
of the winning bidder’s deposits. The winning bidder must use the same FCC Registration Number
(FRN) for the applicant that was used in its short-form application (FCC Form 175) on the FCC Form
159.
10.
To submit funds by wire transfer, the winning bidder will need the following information:
ABA Routing Number: 021030004
Receiving Bank:

TREAS NYC

33 Liberty Street
New York, NY 10045
ACCOUNT NAME:

FCC

ACCOUNT NUMBER: 27000001
OBI Field: (Skip one space between each information item) “AUCTIONPAY”
APPLICANT FRN: (same as FCC Form 159, block 21)
PAYMENT TYPE CODE: (same as FCC Form 159, block 24A: “D096”)
PAYOR NAME: (same as FCC Form 159, Block 2)
LOCKBOX NO.: #979088

9 Id.
10 See section III.D., “Withdrawal, Default and Disqualification Payments,” below.
11 47 C.F.R. § 1.2110(f)(3)(vi).
12 Id.
13 The wire transfer must be initiated by the winning bidder through its bank authorizing the bank to wire funds from
the bidder’s account to the Commission’s account designated to receive payments for financial obligations resulting
from Auction 96.
14 Copies of the FCC Form 159 may be obtained by calling the Commission’s Forms Distribution Center at
(800) 418-3676 (outside Washington, DC) or (202) 418-3676. Copies of the FCC Form 159 can also be obtained
via the Internet (http://www.fcc.gov/formpage.html) or by calling from the handset of a fax machine the
Commission’s Fax Information System at (202) 418-0177.
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DA 14-279

11.
Each winning bidder is responsible for ensuring timely submission of its payment and for
timely filing of an accurate and complete FCC Remittance Advice Form (FCC Form 159). Each winning
bidder should coordinate with its financial institution well ahead of the due date regarding its wire transfer
and should allow sufficient time for the wire transfer to be initiated and completed prior to the deadline.
The Commission repeatedly has cautioned auction participants about the importance of planning ahead to
prepare for unforeseen last-minute difficulties in making payments by wire transfer.15
12.
Please direct questions concerning the calculation and submission of the final payment,
and the FCC Form 159 to Gail Glasser of the Office of Managing Director’s Auctions Accounting Group
at (202) 418-0578.
13.
The winning bidder should obtain confirmation from its financial institution that its wire
transfer to U.S Bank was successful. It should also confirm with Commission staff that its payment was
timely received by the Commission and that it was deposited into the proper account by the specified
deadline. Such confirmation may be obtained by contacting Gail Glasser at (202) 418-0578, or Theresa
Meeks at (202) 418-2945.

D.

Withdrawal, Default and Disqualification Payments

14.
The Commission imposes payment obligations on bidders that withdraw provisionally
winning bids during the course of an auction, on those that default on payments due after an auction
closes, and on those that are disqualified.16
1.

Bid Withdrawal Payments

15.
A bidder that withdraws a provisionally winning bid during the course of an auction is
subject to a bid withdrawal payment obligation equal to the difference between the amount of the
withdrawn bid and the amount of the subsequent winning bid.17 No withdrawal payment will be assessed
for a withdrawn bid if either the subsequent winning bid or any of the intervening subsequent withdrawn
bids equals or exceeds that withdrawn bid.18
16.
Attachment C identifies bidders that withdrew bids in Auction 96. None of those bidders
owe any withdrawal payment amounts to the Commission as a result of bid withdrawals made in Auction
96 because subsequent winning bids exceed their withdrawn bids.19
2.

Bid Default/Disqualification Payments from Auction 96

17.
If a winning bidder defaults or is disqualified after the close of the auction (i.e., fails to
submit a timely long-form application, fails to make full payment of the balance of its winning bid(s) by
the specified deadline, or is otherwise disqualified for any reason), the defaulting bidder will be subject to
the payment obligations described in section 1.2104(g)(2).20 These payment obligations include both a

15 See, e.g, Letter to Lee G. Petro from Margaret W. Wiener, Chief, Auctions and Spectrum Access Division,
Wireless Telecommunications Bureau, DA 10-1270, 25 FCC Rcd 9046 (2010); Letter to David G. O’Neil from
Margaret W. Wiener, Chief, Auctions and Spectrum Access Division, Wireless Telecommunications Bureau, DA
08-622, 23 FCC Rcd 4765 (2008).
16 See 47 C.F.R. §§ 1.2104(g), 1.2109.
17 See 47 C.F.R. § 1.2104(g)(1).
18 Id.
19 See id.
20 47 C.F.R. § 1.2104(g)(2). See also 47 C.F.R. § 1.2109; Auction 96 Procedures Public Notice, 28 FCC Rcd at
13073 ¶ 217.
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deficiency payment, equal to the difference between the amount of the defaulter’s bid and the amount of
the winning bid the next time a license covering the same spectrum is won in an auction, plus an
additional payment equal to a percent of the defaulter’s bid or the subsequent winning bid, whichever is
less.21 The additional default payment for Auction 96 licenses was set at fifteen percent of the applicable
bid.22
18.
If a winning bidder fails to pay the balance of its winning bid in a lump sum by the
deadline specified in this Public Notice, it will be allowed to make a late payment within ten business
days after the payment deadline, provided that it also pays a late fee equal to five percent of the amount
due.23 If a winning bidder fails to pay (a) the balance of its winning bid by the payment deadline on
March 28, 2014, or (b) the balance of its winning bid plus the late fee by the late payment deadline on
April 11, 2014, it will be deemed to have defaulted, and it will be subject to applicable default
payments.24
19.
The Commission will review an applicant’s long-form application only after receipt of
full and timely payment for the winning bid amount and any applicable late fees. The relevant license
will be granted only after full and timely payment of any winning bids (and any applicable late fees) and a
determination that the long-form application meets Commission requirements for grant.25
20.
A bidder that is found to have violated the antitrust laws or the Commission’s rules in
connection with its participation in the competitive bidding process may be subject, in addition to any
other applicable sanctions, to forfeiture of its upfront payment, down payment, or full bid amount, and
may be prohibited from participating in future auctions.26

E.

Refund of Excess Payments

21.
Upfront monies on deposit that are in excess of an applicant’s Auction 96 obligations
may be refunded to the payer of record as identified on the FCC Form 159. To receive a refund, an
applicant must submit a refund request and provide wire transfer instructions. Each applicant can provide
this information by using the Commission’s Integrated Spectrum Auction System (“ISAS”) to file its
refund information electronically using the “See Wire Transfer for Refund Purposes” link found on the
My Auctions page by

March 14, 2014

. After this date, an applicant must send a written request for
refund, along with the necessary wire transfer instructions and FRN, by fax to Gail Glasser of the Office
of the Managing Director at (202) 418-2843 (FAX). Any questions concerning refunds should be referred
to Gail Glasser at (202) 418-0578. Please verify that the Tax Identification Number (“TIN”) associated
with your FRN is correct. An FRN with no TIN on file cannot be processed until a TIN is provided.
Please visit the FCC Registration Number website https://apps.fcc.gov/coresWeb/publicHome.do to
update your records before submitting your refund request.

F.

FCC Form 601

22.
Prior to 6:00 p.m. ET on March 14, 2014, each winning bidder must submit
electronically a properly-completed long-form application (FCC Form 601) for all licenses for which it
was the winning bidder in Auction 96. Attachment D provides instructions for completing the long-form
application and describes how certain information will be automatically transferred from a winning

21 Id.
22 Auction 96 Procedures Public Notice, 28 FCC Rcd at 13073-74 ¶ 218.
23 47 C.F.R. § 1.2109(a).
24 47 C.F.R. §§ 1.2104(g)(2), 1.2109(a), 1.2109(c).
25 See 47 C.F.R. § 1.2109(a).
26 47 C.F.R. § 1.2109(d).
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bidder’s short-form application (FCC Form 175) to its long-form application (FCC Form 601).
23.
An applicant that fails to submit the required long-form application before the specified
deadline and fails to establish good cause for any late-filed submission shall be deemed to have defaulted
and shall be subject to the payments set forth in section 1.2104(g) of the Commission’s rules.27

G.

Tribal Lands Bidding Credit

24.
The Commission has implemented a tribal lands bidding credit to encourage the growth
of wireless services on the lands of federally-recognized tribes. For information relating to the tribal
lands bidding credit, see Attachment D.

H.

FCC Form 602

25.
Pursuant to sections 1.919 and 1.2107(f) of the Commission’s rules, an applicant for a
license in an auctionable service must, at the time of submitting its FCC Form 601, have on file with the
Commission a current ownership disclosure information report (FCC Form 602) providing the applicant’s
complete and accurate ownership information.28 As explained in Attachment D, filing an ownership
disclosure information report (FCC Form 602) is a separate requirement from, and in addition to, the
ownership reporting requirements associated with filing an FCC Form 601, Exhibit A.29 A winning
bidder should carefully follow the instructions set forth in Attachment D when filing its ownership
disclosure report.

I.

Maintaining Accuracy of Information

26.
After the auction closes, all required changes to an applicant’s information must be made
by filing or amending the applicant’s long-form application(s) (FCC Form 601) in the Commission’s
Universal Licensing System.30 With the release of this Public Notice, applicants are no longer required to
maintain the accuracy and completeness of information furnished on their short-form applications and
exhibits.

J.

Application Processing, Petitions to Deny, and License Grant

27.
After its initial review of the long-form applications, the Wireless Telecommunications
Bureau (“Bureau”) will issue a public notice listing the applications that are acceptable for filing.
Pursuant to section 1.2108(b) of the Commission’s rules, interested parties will have ten days from the
release of that public notice within which to file petitions to deny any of these applications.31 An
applicant may file an opposition to any petition to deny within five business days after the time for filing
petitions to deny has expired.32 Replies must be filed within five business days after the time for filing
oppositions to a petition to deny has expired.33 The Commission reminds all parties and their counsel that
the Commission intends to use its authority fully to deter the filing of frivolous pleadings.34

27 47 C.F.R. §§ 1.2104(g), 1.2107(c).
28 47 C.F.R. §§ 1.919, 1.2107(f).
29 The FCC Form 601 ownership reporting requirement can be fulfilled by referencing the file number, date, and
name of filer of the appropriate FCC Form 602. See discussion in Attachment D.
30 47 C.F.R. § 1.65.
31 47 C.F.R. § 1.2108(b).
32 47 C.F.R. § 1.2108(c).
33 Id.
34 See Commission Taking Tough Measures Against Frivolous Pleadings, Public Notice, FCC 96-42, 11 FCC Rcd
3030 (1996).
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28.
If Commission staff determines that an applicant is otherwise qualified and that there are
no substantial and material issues of fact, the Bureau will issue a public notice announcing grant of the
license to the applicant.35

IV.

OTHER IMPORTANT INFORMATION

A.

Maintaining Prohibition on Certain Communications

29.
To ensure the competitiveness of the auction process, the Commission’s rules prohibit
auction applicants for licenses in any of the same or overlapping geographic license areas from
communicating with each other about bids, bidding strategies, or settlements, unless such applicants have
identified each other on their short-form applications as parties with whom they have entered into
agreements under section 1.2105(a)(2)(viii).36 As explained more fully in the Auction 96 Procedures
Public Notice
, this prohibition began at the short-form application filing deadline at 6:00 p.m. ET on
November 15, 2013 and continues until the down payment deadline, which is 6:00 p.m. ET on March
14, 2014
.37
30.
The prohibition on certain communications applies to all applicants in Auction 96 (unless
they have identified each other on their short-form applications as parties with whom they have entered
into agreements under section 1.2105(a)(2)(viii)), regardless of whether an applicant became a qualified
bidder or actually participated in the bidding.38 This prohibition continues for all applicants until the
down payment deadline regardless of whether an applicant is a winning bidder or needs to make an
additional payment by the down payment deadline.39 Each applicant in this auction certified its
compliance with section 1.2105(c) when it filed its short-form application.40

B.

Return of SecurID® Tokens

31.
The SecurID® tokens distributed to qualified bidders are tailored to this auction and will
not work for future auctions. The Commission will send each bidder, along with the copy of this Public
Notice, a pre-addressed, stamped envelope to return its SecurID® tokens. Each bidder should return its
SecurID® tokens to the Commission for recycling by

March 14, 2014

.

35 See 47 C.F.R. §§ 1.2108(d), 1.2109(a).
36 47 C.F.R. §§ 1.2105(a)(2)(viii), 1.2105(c). See also Amendment of Part 1 of the Commission’s Rules –
Competitive Bidding Procedures, WT Docket No. 97-82, Seventh Report and Order, FCC 01-270, 16 FCC Rcd
17546 (2001); Order on Reconsideration of the Third Report and Order, Fifth Report and Order, and Fourth
Further Notice of Proposed Rule Making
, FCC 00-274, 15 FCC Rcd 15293, 15297-98 ¶¶ 7-8 (2000).
37 See Auction 96 Procedures Public Notice, 28 FCC Rcd at 13024-26 ¶¶ 7-14.
38 Id. at 13024 ¶¶ 8-9.
39 Id. at 13026 ¶ 14.
40 47 C.F.R. § 1.2105(a)(2)(ix).
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C.

Contact Information

32.
For further information, contact:

News Media

Wireless Telecommunications Bureau

Cecilia Sulhoff at (202) 418-0587

Licensing Information

Broadband Division

Service Rules, Policies, Regulations
Matthew Pearl (Attorney) or Janet Young
Licensing Issues, Engineering Issues
(Engineer) at (202) 418-2487
Due Diligence, Incumbency Issues
Filing Forms 601 and 602

ULS Support Hotline

(877) 480-3201, option 2
(717) 338-2824 (TTY)

Auction Payment Information

FCC Auctions Accounting Branch

Wire Transfers
Gail Glasser at (202) 418-0578, or
Refunds
Theresa Meeks at (202) 418-2945, or
(202) 418-2843 (fax)

Auction 96 Information

Auctions and Spectrum Access Division

General Auction Information, Process, and
Linda Sanderson (Project Manager) or
Procedures
Jeff Crooks (Auction Analyst), at
(202) 418-0660
Auction Rules, Policies, and Regulations
Valerie Barrish (Attorney) at (202) 418-0660

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
- FCC -
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