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Final Withdrawal Payment Letter for Alltel Corporation

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

DA 12-518

Via Certified Mail, Return Receipt Requested

Mr. Zoran Pavlovic
Alltel Corporation
One Allied Drive
Little Rock, AR 72202
Mr. John Bareham
Verizon Wireless
1120 Sanctuary Parkway
Alpharetta, CA 30009

Re: Final Bid Withdrawal Payment on Five Auction 73 Licenses WY-CMA221-B, WY-

CMA276-B,WY-CMA298-B, WY-CMA566-B, and WY-CMA630-B

DO NOT DISCARD THIS IMPORTANT NOTICE

OF A DEMAND FOR PAYMENT

OF A DEBT OWED THE UNITED STATES AND ORDER OF PAYMENT

Dear Mr. Pavlovic and Mr. Bareham:
This Order provides notice and demands payment of a debt owed to the United States based on
Alltel Corporation’s withdrawal of provisionally winning bids placed during the course of Auction 73.
The Commission granted Verizon Wireless the approval to acquire Alltel Corporation (“Alltel”) on
November 4, 2008. 1 Following the consummation of the acquisition, Verizon Wireless notified the
Commission that it is responsible for Alltel’s outstanding debt.2


1 See FCC Wireless Telecommunications Bureau Application for Assignments of Authorization and Transfers of
Control (FCC 603), File No. 0003702659 (Commission consent to transfer licenses for the Part 22 Cellular
Radiotelephone Service, the Part 22 Paging and Radiotelephone Service, the Part 24 Personal Communications
Service, the Part 27 700 MHz Band Service, the Part 27 700 MHz Guard Band Service, the Part 90
Industrial/Business Pool Service, the Part 90 Private Carrier Paging Service, the Part 90 Specialized Mobile Radio
Service, the Part 101 Common Carrier Fixed Point-to-Point Microwave Service, the Part 101 Fixed Point-to-Point
Microwave Service, the Part 101 39 GHz Auctioned Service, the Part 101 Local Television Transmission Service,
and the Part 101 Local Multipoint Distribution Service, as well as domestic and international Section 214
authorizations, to Verizon Wireless granted November 4, 2008, transfer consummated January 9, 2009) (publicly
available through the Commission's Universal Licensing System website, http://wireless.fcc.gov/uls/).
2 See email from Michael Samsock, Verizon Wireless, to Gail Glasser, Auctions Accounting Group, Office of
Managing Director, Federal Communications Commission, sent October 18, 2011.

Alltel Corporation

DA 12-518

April 3, 2012
Page 2
Alltel withdrew provisionally winning bids during Auction 73 for eight 700 MHz Band licenses
in the following areas: Fargo-Moorehead, ND-MN (WY-CMA221-B); Grand Forks, ND-MN (WY-
CMA276-B); Bismarck, ND (WY-CMA298-B); Minnesota 1 - Kittson (WY-CMA482-B); North
Carolina 2 – Yancey (WY-CMA566-B); South Carolina 1 – Oconee (WY-CMA625-B); South Carolina
6 – Clarendon (WY-CMA630-B); and Tennessee 8 – Johnson (WY-CMA650-B). Thus, pursuant to the
Commission’s rules,3 Alltel owes a bid withdrawal payment, which is a debt owed to the United States.4
Three of the eight licenses, Minnesota 1 – Kittson, South Carolina 1 – Oconee, and Tennessee 8 –
Johnson, received subsequent winning bids during Auction 73.5 In 2008, the Commission assessed
Alltel a final bid withdrawal payment of $1,000 for the South Carolina 1 – Oconee license from the
monies Alltel had on deposit.6 Because the subsequent winning bid for the Minnesota 1 – Kittson
license was the same as Alltel’s withdrawn bid, and the subsequent winning bid for the Tennessee 8 –
Johnson license was greater than Alltel’s withdrawn bid, Alltel was not liable for a withdrawal payment
for those two licenses.7
The remaining five licenses were unsold at the end of Auction 73 and the Commission assessed
Alltel an interim bid withdrawal payment of $754,700.00 from the monies it had on deposit.8 New
licenses for the same spectrum were offered in a subsequent auction of 700 MHz Band licenses
(Auction 92), and because they received winning bids,9 the Commission is now able to calculate
Alltel’s final bid withdrawal payment obligation with respect to its withdrawn bids in Auction 73.10
Under the Commission’s rules, a bidder that withdraws a provisionally winning bid during the
course of an auction is subject to a bid withdrawal payment equal to the difference between the amount
of the withdrawn bid and the amount of the subsequent winning bid.11 Pursuant to the rule in effect at
the time of Auction 73, if a provisionally winning bid is withdrawn on a license that remains unsold at
the close of the auction, the withdrawing bidder is required to make an interim payment equal to ten
percent (10%) of the net amount of the withdrawn bid.12 This payment amount is deducted from any
upfront payments or down payments deposited for the withdrawing bidder’s account with the
Commission.13 If, in a subsequent auction, that license receives a winning bid in an amount equal to or
greater than the withdrawn bid amount, then no final bid withdrawal payment is assessed, and, upon


3 See 47 C.F.R. § 1.2104(g)(1).
4 See 31 U.S.C. § 3701(b)(1).
5 See Auction of 700 MHz Band Licenses Closes; Winning Bidders Announced for Auction 73, Public Notice, 23
FCC Rcd 4572, 4627, 4637-38 (WTB 2008).
6 See id. at 4664.
7 See id.
8 See id.
9 See Auction of 700 MHz Band Licenses Closes, Winning Bidders Announced for Auction 92, Public Notice, 26
FCC Rcd 10,494, 10,503 (WTB 2011).
10 See 47 C.F.R. § 1.2104(g)(1).
11 Id.
12 Id. See Auction of 700 MHz Band Licenses Scheduled for January 24, 2008, Notice and Filing Requirements,
Minimum Opening Bids, Reserve Prices, Upfront Payments, and Other Procedures for Auctions 73 and 76, Public
Notice,
22 FCC Rcd 18,141, 18,211 ¶¶ 267-68 (WTB 2007).
13 See 47 C.F.R. §§ 1.2104(g)(1), 1.2106(d) and (e).

Alltel Corporation

DA 12-518

April 3, 2012
Page 3
appropriate request, the Commission refunds the interim payment.14 If, in a subsequent auction, the
winning bid for that license is less than the bidder’s withdrawn amount, then the bidder is required to
make a final bid withdrawal payment equal to either the difference between the bidder’s net withdrawn
bid and the subsequent net winning bid, or the difference between the bidder’s gross withdrawn bid and
the subsequent gross winning bid, whichever is less.15
As shown in Attachment A, in accordance with section 1.2104(g)(1) of the Commission’s
rules,16 we have completed the final bid withdrawal payment calculation and, after applying any interim
bid withdrawal payment or monies Alltel has on deposit, Alltel owes an outstanding balance of
$496,300.00. 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 in Attachment B.

Important Notice Information

The following provides notification of procedures and information required by the Debt
Collection Improvement Act of 1996 (“DCIA”).17 The outstanding balance shown in Attachment A is a
debt Alltel 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”).18 Any portion of the debt unpaid at the end of the Due Date will be considered delinquent and
administrative charges (incurred for processing and handling delinquent debts),19 interest,20 and
penalties21 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. § 3717.22 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.23
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.24 In addition to these charges, the Commission may initiate
administrative offset25 and it may refer the delinquent debt to the United States Treasury or the


14 See 47 C.F.R. § 1.2104(g)(1).
15 Id.
16 Id.
17 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.
18 As noted at Attachment B, if the 30th day falls on a non-business day, payment must be received on the next
business day.
19 31 U.S.C § 3717(e)(1); 47 C.F.R. § 1.1940(c).
20 31 U.S.C. § 3717(b); 47 C.F.R. § 1.1940(b).
21 31 U.S.C. § 3717(e); 47 C.F.R. § 1.1940(d).
22 47 C.F.R. § 1.1940(b).
23 31 U.S.C. § 3717(e)(2); 47 C.F.R. § 1.1940(d).
24 31 U.S.C. § 3717(d); 47 C.F.R. § 1.1940(g).

Alltel Corporation

DA 12-518

April 3, 2012
Page 4
Department of Justice (“DOJ”) for further collection action.26 The United States Treasury will impose
an additional administrative collection charge,27 and it may also commence administrative offset.28 An
additional surcharge may be imposed, if DOJ initiates judicial action to recover judgment.29
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)(1) of the Commission’s rules, 47
C.F.R. § 1.2104(g)(1), Alltel Corporation is ASSESSED a final bid withdrawal payment 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, Alltel Corporation’s interim bid withdrawal payment or funds on
deposit will be applied towards the sum of the final bid withdrawal payment.
IT IS FURTHER ORDERED that Alltel Corporation’s debt of $496,300.00 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.





25 47 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).
26 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.
27 31 U.S.C. § 3717(e); 31 C.F.R. § 285.12(j).
28 31 U.S.C. § 3716; 47 C.F.R. § 1.1912(b) (mandatory centralized administrative offset).
29 28 U.S.C. § 3011.

Alltel Corporation

DA 12-518

April 3, 2012
Page 5
IT IS FURTHER ORDERED that this Order and a FCC Remittance Advice Form (FCC Form
159, Version 2/03) shall be sent to Verizon Wireless and Alltel Corporation and their 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
Attachments
cc:
Michael Samsock, Verizon Wireless (w/attachments)

Alltel Corporation

DA 12-518

April 3, 2012
Page 6

ATTACHMENT A

Multi-Auction Bid Withdrawal Payment Report

License

Withdrawn

Withdrawn

Re-auction

Re-auction Net

Difference

Final Bid

Number

Gross Bid

Net Bid

Gross Bid

Bid

Between

Withdrawal

Frequency

Auction No. 73

Auction

Auction No.

Auction No. 92

Withdrawn Bid

Payment

Block

No. 73

92

Amount and

Final Bid

Amount in

Subsequent

Auction

WY-CMA221-B $1,412,000.00 $1,412,000.00 $1,435,000.00
$1,435,000.00
($23,000.00)*
$0.00
WY-CMA276-B $1,042,000.00 $1,042,000.00 $926,000.00
$926,000.00
$116,000.00
$116,000.00
WY-CMA298-B $1,007,000.00 $1,007,000.00 $1,265,000.00
$1,265,000.00
($258,000.00)*
$0.00
WY-CMA566-B $1,883,000.00 $1,883,000.00 $1,606,000.00
$1,606,000.00
$277,000.00
$277,000.00
WY-CMA630-B $2,203,000.00 $2,203,000.00 $1,345,000.00
$1,345,000.00
$858,000.00
$858,000.00
* Since this license received a subsequent winning bid in an amount equal to or greater than the
withdrawn bid, no final bid withdrawal payment is assessed against Alltel Corporation for this license.
Final Bid Withdrawal Payment
$1,251,000.00
Less Total of Interim Withdrawal
$754,700.00
Payment and Amounts on Deposit

Outstanding Balance Due on

$496,300.00

Final Withdrawal Payment


Alltel Corporation

DA 12-518

April 3, 2012
Page 7

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: “

AWLD

”)
FCC CODE 1: (same as FCC Form 159, Block 28A: (“73”)
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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