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Letter Notifying VentureTel 700 of Availability of Refund

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Released: March 23, 2012
Federal Communications Commission
Washington, D.C. 20554
March 23, 2012

DA 12-458

Via Certified Mail, Return Receipt Requested

VentureTel 700, Inc.
Attn: Charles M. Austin
400 E. Royal Lane
Suite N24
Irving, TX 75039

Re: VentureTel 700, Inc. – Eligibility for Refund of Amount on Deposit for Auction 73 for

licenses CMA147-B, CMA169-B, CMA202-B, CMA204-B, CMA625-B, CMA724-B,
and CMA725-B

Dear Mr. Austin:
By this letter, we notify VentureTel 700, Inc. (“VentureTel”) of the availability of a refund of
funds on deposit with the Federal Communications Commission (“Commission”) related to VentureTel’s
participation in the Commission’s auction of 700 MHz licenses (Auction 73).
VentureTel, a participant in Auction 73, was the winning bidder for seven 700 MHz B Block
licenses, CMA147-B, CMA169-B, CMA202-B, CMA204-B, CMA625-B, CMA724-B, and CMA725-B.
After the close of Auction 73, VentureTel defaulted on its final payment obligation for these licenses.1 In
2008, the Commission assessed VentureTel a total initial default payment of $218,250.00, from the
monies it had on deposit.2 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,3 the Commission is now
able to calculate VentureTel’s final default payment obligation with respect to the Licenses.4
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.5 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

1 See Letter from Margaret W. Wiener, Chief, Auctions and Spectrum Access Division, and Roger S. Noel, Chief,
Mobility Division, Wireless Telecommunications Bureau, to VentureTel 700, Inc., Attn: Charles M. Austin, 23 FCC
Rcd 14,092 (WTB/ASAD/MD 2008) (“VentureTel Letter”).
2 See VentureTel Letter, 23 FCC Rcd at 14,094; see also 47 C.F.R. § 1.2104(g)(2).
3 See “Auction of 700 MHz Band Licenses Closes, Winning Bidders Announced for Auction 92,” Public Notice, 26
FCC Rcd 10,494 (WTB 2011).
4 47 C.F.R. § 1.2104(g)(2).
5 47 C.F.R. §§ 1.2104(g)(2), 1.2109(b).

VentureTel 700, Inc.

DA 12-458

March 23, 2012
Page 2

defaulted bid.6 The second component of the default payment is an additional payment, which, pursuant
to the rule in effect at the time of Auction 73, is equal to fifteen percent (15%) of the defaulter’s bid, or
the subsequent winning bid, whichever is less.7 In the event that the subsequent winning bid is greater
than or equal to the defaulted bid, the total default payment is equal to fifteen percent (15%) of the
defaulted bid.8
As shown in Attachment A, in accordance with section 1.2104(g)(2) of the Commission’s rules,
because the subsequent winning bid on each license exceeded the corresponding defaulted bid,
VentureTel is liable only for the additional payment component as a final default payment in the amount
of $218,250.00. After applying the interim default payments, no outstanding balance is owed to the
Commission. Therefore, in accordance with Section 1.2104 of the Commission’s rules, the Commission
is prepared to refund the payor(s) of record the $487,250.00 remaining funds on deposit with the
Commission. To obtain a refund, the payor(s) of record9 must submit a request in accordance with the
instructions set forth in Attachment B.

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), VentureTel 700, Inc. is ASSESSED a final default payment obligation as computed
in Attachment A.
IT IS FURTHER ORDERED, that, pursuant to 47 C.F.R. §§ 1.2104 and 1.2106, VentureTel 700,
Inc.’s interim payments or funds on deposit will be applied towards the sum of the default payment, and the
Commission will refund amounts due upon request from the payor(s) of record.
IT IS FURTHER ORDERED that, in accordance with section 1.2104 of the Commission’s rules,
the Commission is prepared to refund to the payor(s) of record, the remaining funds withheld in
connection with VentureTel 700, Inc.’s default referenced above. To obtain a refund, the payor(s) of
record must submit a request(s) in accordance with the instructions set forth in Attachment B.

6 47 C.F.R. § 1.2104(g)(2)(i).
7 47 C.F.R § 1.2104(g)(2) (2007); see Auction of 700 MHz Band Licenses Scheduled for January 24, 2008; Notice
and Filing Requirements, Minimum Opening Bids, Upfront Payments, and Other Procedures for Auction 73 and 76,
Public Notice, 22 FCC Rcd 18141,18,220-221 (2007) (“Auction 73 Procedures Public Notice”).
8 Id.
9 See In the Matter of Entertainment Unlimited, Inc., Request for Refund of Late Payment Fees for PCS Licenses
Purchased in Auction No. 22, Memorandum Opinion and Order, 16 FCC Rcd. 10,030 (2001) (noting that the
Commission does not accept instructions regarding the refund of excess upfront payments from entities or
individuals other than the payor of record).

VentureTel 700, Inc.

DA 12-458

March 23, 2012
Page 3

IT IS FURTHER ORDERED that this Order shall be sent to VentureTel 700, Inc. 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.
Gary D. Michaels
Deputy Chief, Auctions and Spectrum Access Division
Wireless Telecommunications Bureau

VentureTel 700, Inc.

DA 12-458

March 23, 2012
Page 4


Multi-Auction Default Payment Report

15% Payment
Gross Bid
Net Bid
Gross Bid
Net Bid
Auction 73
Auction 73
Auction 92
Auction 92
$442,500.00 $3,065,000.00
$410,250.00 $2,599,000.00
$153,000.00 $1,281,000.00
$100,500.00 $2,913,000.00
Amount on Deposit
Less 15% Default Payment

Refund Due to VentureTel 700, Inc.


VentureTel 700, Inc.

DA 12-458

March 23, 2012
Page 5


The Commission will make refunds upon compliance with the following procedures:
Ø For each payor of record, submit an Automated Clearing House Vendor/Miscellaneous Payment
Enrollment Form (“ACH Form”) (see sample attached).10 You may obtain additional copies of this
form at
The ACH form may be either faxed or mailed to the Commission. The fax number is (202) 418-
2980. The mailing address is: Federal Communications Commission, Office of the Managing
Director, Attention: Auctions Accounting Group, Room 1-C864, 445 12th Street SW,
Washington, DC 20554. If you have questions concerning the completion of this form, please
contact Gail Glasser at (202) 418-0578.
Submit a letter (along with the ACH form) signed by the payor of record, requesting a refund.
Refunds will be processed within approximately two weeks of the Commission’s receipt of the ACH form
and accompanying letter from the payor of record.

10 Refunds will be processed via ACH credits. ACH is a domestic funds transfer system providing an electronic
parallel to the Federal Reserve check clearing system. ACH is governed by the Rules of the National Automated
Clearing House Association. Generally speaking, an ACH is an instrument for moving money electronically from
one participating financial institution to another.

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