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Final Default Payment Letter for Tel-Com Wireless Cable TV

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Released: April 3, 2012
Federal Communications Commission
Washington, D.C. 20554
April 3, 2012

DA 12-520

Via Certified Mail, Return Receipt Requested

Tel-Com Wireless Cable TV Corporation
Attn: Fern L. Duquette
501 N. Grandview Avenue, Suite 201
Daytona Beach, FL 32118

Re: Final Default Payment for Auction 6 License BTA189 (Hickory, North Carolina)

DO NOT DISCARD THIS IMPORTANT NOTICE

OF A DEMAND FOR PAYMENT

OF A DEBT OWED THE UNITED STATES AND ORDER OF PAYMENT

Dear Mr. Duquette:
This Order provides notice and demands payment of a debt owed to the United States based on
the default of Tel-Com Wireless Cable TV Corporation (“Tel-Com Wireless”) on its final payment for a
license it won in Auction 6.
Tel-Com Wireless had the winning bid in Auction 6 for the Broadband Radio Service (“BRS”)1
license in the Hickory, North Carolina Basic Trading Area (“BTA”). After the close of Auction 6, Tel-
Com Wireless defaulted on its final payment obligation for this license.2 Thus, pursuant to the
Commission’s rules,3 Tel-Com Wireless owes a default payment, which is a debt owed to the United
States.4 In 1997, the Commission assessed Tel-Com Wireless a total initial default payment of
$55,711.81, from the monies it had on deposit.5 A new license for the same spectrum rights was offered


1 The Broadband Radio Service was originally called the Multipoint Distribution Service (“MDS”), and the Tel-
Com Wireless license was for MDS spectrum. However, in 2004, the Commission renamed MDS as BRS. See
Amendment of Parts 1, 21, 73, 74 and 101 of the Commission's Rules to Facilitate the Provision of Fixed and
Mobile Broadband Access, Educational and Other Advanced Services in the 2150-2162 and 2500-2690 MHz Bands,
Report and Order and Further Notice of Proposed Rulemaking, 19 FCC Rcd 14165 (2004). Accordingly, in this
order we refer to the service by its current name of BRS.
2 Tel-Com Wireless defaulted on Hickory, North Carolina (BTA) B189 authorization in Auction 6. See In the
Matter of Tel-Com Wireless Cable TV Corporation, BTA No. B189 Multipoint Distribution Service, File No.
BMDS960510HAS, Order, 12 FCC Rcd 6747 (1997).
3 See 47 C.F.R. §§ 1.2104(g)(2), 1.2109(b).
4 See 31 U.S.C. § 3701(b)(1).
5 See also Order, 12 FCC Rcd at 6749; see 47 C.F.R. § 1.2104(g)(2).

Tel-Com Wireless Cable Television

DA 12-520

April 3, 2012
Page 2
in a subsequent auction of BRS licenses (Auction 86),6 and because it received a winning bid,7 the
Commission is now able to calculate Tel-Com Wireless’ final default payment obligation with respect to
the license.8
Under the Commission’s rules, at the close of the auction, a winning bidder assumes a binding
obligation to pay the full amount of its accepted winning bid. A bidder who defaults on that obligation or
is disqualified is subject to a default payment.9 The default payment has two components. The first
component is the difference between the bidder’s net defaulted bid and the subsequent net winning bid, or
the difference between the bidder’s gross defaulted bid and the subsequent gross winning bid, whichever
is less, the next time a license for the spectrum is won, should the subsequent winning bid be less than the
defaulted bid.10 The second component of the default payment is an additional payment, which, pursuant
to the rule in effect at the time of Auction 6, is equal to three percent (3%) of the defaulter’s bid, or the
subsequent winning bid, whichever is less.11 In the event that the subsequent winning bid is greater than
or equal to the defaulted bid, the total default payment is equal to three percent (3%) of the defaulted
bid.12
As shown in Attachment A, in accordance with section 1.2104(g)(2) of the Commission’s rules,
we have completed the final default payment calculation and, after applying the monies Tel-Com
Wireless has on deposit, Tel-Com Wireless owes an outstanding balance of $1,354,164.40. This debt to
the United States is payable in full and without further demand within 30 days of the date of this Order in
accordance with the Notice Information provided below and Payment Instructions at Attachment B.

Important Notice Information

The following provides notification of procedures and information required by the Debt
Collection Improvement Act of 1996 (“DCIA”).13 The outstanding balance shown in Attachment A is a
debt Tel-Com Wireless owes to the United States. It is payable in full and without further demand, and
payment must be received no later than the payment due date, which is 30 days from the date of this
Order (“Due Date”).14 Any portion of the debt unpaid at the end of the Due Date will be considered


6 See 47 C.F.R. § 27.5(i)(2).
7 See Auction of Broadband Radio Service Licenses Closes; Winning Bidders Announced for Auction 86, Public
Notice
, 24 FCC Rcd 13572 (2009).
8 47 C.F.R § 1.2104(g)(2).
9 47 C.F.R. §§ 1.2104(g)(2), 1.2109(b).
10 47 C.F.R § 1.2104(g)(2)(i).
11 47 C.F.R § 1.2104(g)(2)(1996).
12 Id.
13 Public Law 104-134, 110 Stat. 1321, 1358 (Apr. 26, 1996) codified in relevant part at 31 U.S.C. §§ 3716
(administrative offset) and 3717 (interest and penalty on claims); see also 47 C.F.R. §§ 1.1911, 1.1912, and 1.1940.
14 As noted at Attachment B, if the 30th day falls on a non-business day, payment must be received on the next
business day.

Tel-Com Wireless Cable Television

DA 12-520

April 3, 2012
Page 3
delinquent and administrative charges (incurred for processing and handling delinquent debts),15
interest,16 and penalties17 will accrue beginning from that date. Interest accrues at a minimum annual rate
established annually by the United States Treasury in accordance with 31 U.S.C. § 3717.18 A penalty of
six percent (6%) accrues on any portion of the debt that remains unpaid for more than 90 days from the
Due Date.19 However, the Commission will waive payment of the accrued interest, if the full amount of
the debt is paid within 30 days of the Due Date.20 In addition to these charges, the Commission may
initiate administrative offset,21 and it may refer the delinquent debt to the United States Treasury or the
Department of Justice (“DOJ”) for further collection action.22 The United States Treasury will impose an
additional administrative collection charge,23 and it may also commence administrative offset.24 An
additional surcharge may be imposed, if DOJ initiates judicial action to recover judgment.25 Furthermore,
any portion of the debt that is unpaid after the Due Date is a delinquent debt, which will trigger
application of the Commission’s red light procedures at 47 C.F.R. § 1.1910.

Ordering Clauses

Accordingly, IT IS ORDERED that, pursuant to sections 4(i) and 309 of the Communications Act
of 1934 as amended, 47 U.S.C. §§ 154(i), 309, and section 1.2104(g)(2) of the Commission’s rules, 47
C.F.R. § 1.2104(g)(2), Tel-Com Wireless Cable TV Corporation is ASSESSED a final default payment
obligation as computed in Attachment A.
IT IS FURTHER ORDERED that, pursuant to sections 1.2104 and 1.2106 of the Commission’s
rules, 47 C.F.R. §§ 1.2104 and 1.2106, Tel-Com Wireless Cable TV Corporation’s interim payment or
funds on deposit will be applied towards the final default payment.


15 31 U.S.C. § 3717(e)(1); 47 C.F.R. § 1.1940(c).
16 31 U.S.C. § 3717(b); 47 C.F.R. § 1.1940(b).
17 31 U.S.C. § 3717(e); 47 C.F.R. § 1.1940(d).
18 47 C.F.R. § 1.1940(b).
19 31 U.S.C. § 3717(e)(2); 47 C.F.R. § 1.1940(d).
2031 U.S.C. § 3717(d); 47 C.F.R. § 1.1940(g).
2147 C.F.R. § 1.1912. Under this provision the Commission may refer the debt to the United States Treasury for
centralized administrative offset whereby, subject to certain exceptions, money otherwise payable to the debtor by
the United States government may be used to satisfy the debt. In addition, “unless otherwise prohibited by law,” the
Commission may conduct “non-centralized, ad hoc case-by-case offsets when centralized offset is unavailable or
inappropriate.” 47 C.F.R. § 1.1912(c).
22 31 U.S.C. §§ 3711(g), 3716; 28 U.S.C. § 3001, et seq.; 47 C.F.R. § 1.1912. Transfer may be made without further
notice at any time after the Due Date.
23 31 U.S.C. § 3717(e); 31 C.F.R. § 285.12 (j).
24 31 U.S.C. § 3716; 47 C.F.R. § 1.1912(b) (mandatory centralized administrative offset).
25 28 U.S.C. § 3011.

Tel-Com Wireless Cable Television

DA 12-520

April 3, 2012
Page 4
IT IS FURTHER ORDERED that Tel-Com Wireless Cable TV Corporation’s debt of
$1,354,164.40 is payable in full and without further demand, and it must be paid within 30 days of the
date of this Order (the Due Date), in accordance with the payment instructions in Attachment B, and any
portion of the debt unpaid after the Due Date is delinquent, and under 31 U.S.C. § 3717, administrative
charges, interest, and penalties will accrue.
IT IS FURTHER ORDERED that this Order and a FCC Remittance Advice Form (FCC Form
159, Version 2/03) shall be sent to Tel-Com Wireless Cable TV Corporation and its representatives by
certified mail, return receipt requested. This action is taken pursuant to authority delegated by Section
0.331 of the Commission’s rules, 47 C.F.R. § 0.331.
Sincerely,
Gary D. Michaels
Deputy Chief, Auctions and Spectrum Access Division
Wireless Telecommunications Bureau

Tel-Com Wireless Cable Television

DA 12-520

April 3, 2012
Page 5

ATTACHMENT A

Multi-Auction Default Payment Report

License
Defaulted
Defaulted
Re-auction
Re-auction
3%
Lower
Final
Number
Gross Bid
Net Bid
Gross Bid
Net Bid
Payment
Difference
Payment
Frequency
Auction 6
Auction 6
Auction No. Auction No.
Payment
Block
86
86
MD-BTA189
$2,184,777.00
$1,857,060.45 $327,000.00 $327,000.00 $9,810.00
$1,530,060.45
$1,539,870.45
(Hickory, North
Carolina)
Total Final Default Payment Due
$1,539,870.45
Less Amount on Deposit
$185,706.05

Outstanding Balance Due on

$1,354,164.40

Final Default Payment


Tel-Com Wireless Cable Television

DA 12-520

April 3, 2012
Page 6

ATTACHMENT B

Payment Instructions

The following information is being provided to assist you in making your payment.
All payments must be made in U.S. currency in the form of a wire transfer. No personal checks, cashier’s
checks or other forms of payment will be accepted. Wire transfer payments must be received by 6:00 PM
Eastern Time, no later than thirty days from the date of this ORDER; however, if the 30th day falls on a
non-business day, e.g., Saturday, Sunday or holiday, it is due the next business day. Applicants must
allow sufficient time for the wire transfer to be initiated and for the transmission to be completed prior to
the deadline. To submit funds by wire, applicants will need the following information to properly effect
the transmittal:
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: “

APEN

”)
FCC CODE 1: (same as FCC Form 159, Block 28A: (“35”)
PAYOR NAME: (same as FCC Form 159, Block 2)
LOCKBOX NO.: #979088
Please fax a completed remittance advice (Form 159) to U.S. Bank, St. Louis, Missouri at (314) 418-4232
at least one hour before initiating the wire transfer (but on the same business day).
For questions regarding the submission of payment, and the FCC Form 159, contact Gail Glasser, Office
of the Managing Director, Financial Operations, Auctions Accounting Group, at (202) 418-0578.

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