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Letter notifying Xanadoo 700 of availability of refund

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

DA 12-457

Via Certified Mail, Return Receipt Requested

Scott A. Blank
Senior Vice President
Xanadoo 700 MHz DE, LLC
225 City Line Avenue
Suite 200
Bala Cynwyd, PA 19004

Re: Xanadoo 700 MHz DE, LLC - Eligibility for Refund of Amount on Deposit for

Auction 73 for licenses WY-BEA137-A (Lubbock, TX)

Dear Mr. Blank:
By this letter, we notify Xanadoo 700 MHz DE, LLC (“Xanadoo”) of the availability of a refund
of funds on deposit with the Federal Communications Commission (“Commission”) in connection with
Xanadoo’s participation in the Commission’s auction of 700 MHz licenses (Auction 73).
Xanadoo withdrew provisionally winning bids during Auction 73 for three 700 MHz Band
licenses in the following areas: Lubbock, TX (WY-BEA137-A); Steubenville-Weirton, OH-WV (WY-
CMA199-B); and Sherman-Denison, TX (WY-CMA292-B). Two of these licenses, Steubenville-
Weirton, OH-WV and Sherman-Denison, TX, received subsequent winning bids during Auction 73, and
the Commission assessed final withdrawal payments for these licenses from the monies Xanadoo had on
deposit in the amounts of $4,500.00 and $3,000.00, respectively.1 The remaining license, Lubbock, TX,
remained unsold at the end of Auction 73 and the Commission assessed Xanadoo an interim bid
withdrawal payment of $54,075.00 from the monies it had on deposit.2 A new license for the same
spectrum was offered in a subsequent auction of 700 MHz Band licenses (Auction 92), and because it
received a winning bid,3 the Commission is now able to calculate Xanadoo’s final bid withdrawal
payment obligation with respect to the Lubbock, TX license.4
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the withdrawn bid and the amount of the subsequent winning bid.5 Pursuant to the rule in effect at the
time of Auction 73, if a provisionally winning bid is withdrawn on a license that remains unsold at the


1 See “Auction of 700 MHz Band Licenses Closes; Winning Bidders Announced for Auction 73,” Public Notice, 23
FCC Rcd 4572 (WTB 2008).
2 See id.
3 See “Auction of 700 MHz Band Licenses Closes, Winning Bidders Announced for Auction 92,” Public Notice, 26
FCC Rcd 10,494 (WTB 2011).
4See 47 C.F.R. § 1.2104(g)(1).
5 Id.

Xanadoo 700 MHz DE, LLC


DA 12-457

March 23, 2012
Page 2

close of the auction, the withdrawing bidder will be required to make an interim payment equal to ten
percent (10%) of the net amount of the withdrawn bid.6 This payment amount is deducted from any
upfront payments or down payments deposited for the withdrawing bidder’s account with the
Commission.7 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 will be assessed, and, upon
appropriate request, the Commission refunds the interim payment.8 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.
As shown in Attachment A, in accordance with section 1.2104(g)(1) of the Commission’s rules,9
because the subsequent winning bid on the Lubbock, TX license exceeded Xanadoo’s withdrawn bid,
Xanadoo is not liable for a withdrawal payment and the interim withdrawal payment assessed is available
for refund. Therefore, in accordance with section 1.2104 of the Commission’s rules, the Commission is
prepared to refund the payor(s) of record the $54,075.00 remaining funds on deposit with the
Commission. To obtain a refund, the payor(s) of record 10 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)(1) of the Commission’s rules, 47
C.F.R. § 1.2104(g)(1), Xanadoo 700 MHz DE, LLC is ASSESSED a final bid withdrawal payment as
computed in Attachment A.
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 Xanadoo 700 MHz DE, LLC’s withdrawal 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 Id.; “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 (2007). See also Implementation of Section 309(j) of the
Communications Act—Competitive Bidding, PP Docket No. 93-253, Fifth Report and Order, 9 FCC Rcd 5532,
5563 n. 51 (1994).
7 See 47 C.F.R. § 1.2106(d) and (e).
8 See 47 C.F.R. § 1.2104(g)(1).
9 Id.
10 See Entertainment Unlimited, Inc., Request for Refund of Late Payment Fees for PCS Licenses Purchased in
Auction 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).

Xanadoo 700 MHz DE, LLC


DA 12-457

March 23, 2012
Page 3

IT IS FURTHER ORDERED that this letter shall be sent to the applicant 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
Attachments

Xanadoo 700 MHz DE, LLC


DA 12-457

March 23, 2012
Page 4

ATTACHMENT A

Multi-Auction Bid Withdrawal Payment/Refund Report

License

Withdrawn Withdrawn Net

Re-auction

Re-auction

10% Deposit

Final Bid

Number

Gross Bid

Bid Auction 73

Gross Bid

Net Bid

Withheld from Withdrawal

Frequency Block

Auction 73

Auction 92

Auction 92

Auction 73

Payment

WY-BEA137-A
$721,000.00
$540,750.00
$1,915,000.00
$1,436,250.00
$54,075.00
$0.00
Total Final Bid Withdrawal
Obligation for WY-BEA137-A
$0.00
Total of Interim Withdrawal Payment
and Amounts on Deposit
$54,075.00

Total Refund Due for

WY-BEA137-A

$54,075.00

Xanadoo 700 MHz DE, LLC


DA 12-457

March 23, 2012
Page 5

ATTACHMENT B

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).11 You may obtain additional copies of this
form at http://www.fms.treas.gov/pdf/3881.pdf.
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.
-FCC-


11 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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