WPCy 2HBX Z3|j )TT)Courierw Roman)Times New Roman (TT)Times New Roman (Bold) (TT)HP LaserJet 4M room 228 LPT1HPLA4MP0.PRSx  @\<"N]X@zC8C^dCYdYdYCdd88d8ddddCN8ddddY`(`l2CC!CCPRCddYYYYYYzYzYzYzYC8C8C8C8ddddddddddYdddddoddYYYYYzYzYzYddddddPdCdCCCdNdz8zRdddCRoNoNNF2[dCYddddd7>d<d<CCYYdCCddCYCdYzzzzCCCCqodYYYYYYYYYYY8888dddddddndddddddCourierTimes New RomanNew Roman (TT)CO2.WRSSXj\  P6G;,,$vXP29-zD)CourierTimes New RomanTimes New Roman Bold P6Q CXP#3|PCourierTimes New RomanTimes New Roman BoldTimes New Roman ItalicgX@ X-#C\  P6QH;P#X01Í ÍX01Í Í#XP\  P6QXP#2dk`v~p05-05-98 01:18a CourierTimes New RomanTimes New Roman BoldTimes New Roman ItalicTimes New Roman Bold ItalicTT)Times New Roman (Bold Italic) (TT)Romana8DocumentgDocument Style StyleXX` `  ` a4DocumentgDocument Style Style . 2 kk l v a6DocumentgDocument Style Style GX  a5DocumentgDocument Style Style }X(# a2DocumentgDocument Style Style<o   ?  A.  a7DocumentgDocument Style StyleyXX` ` (#` 2 t -  j BibliogrphyBibliography:X (# a1Right ParRight-Aligned Paragraph Numbers:`S@ I.  X(# a2Right ParRight-Aligned Paragraph Numbers C @` A. ` ` (#` a3DocumentgDocument Style Style B b  ?  1.  2+ C  ca3Right ParRight-Aligned Paragraph Numbers L! ` ` @P 1. ` `  (# a4Right ParRight-Aligned Paragraph Numbers Uj` `  @ a. ` (# a5Right ParRight-Aligned Paragraph Numbers _o` `  @h(1)  hh#(#h a6Right ParRight-Aligned Paragraph Numbersh` `  hh#@$(a) hh#((# 2]-a7Right ParRight-Aligned Paragraph NumberspfJ` `  hh#(@*i) (h-(# a8Right ParRight-Aligned Paragraph NumbersyW"3!` `  hh#(-@p/a) -pp2(#p Tech InitInitialize Technical Style. k I. A. 1. a.(1)(a) i) a) 1 .1 .1 .1 .1 .1 .1 .1 Technicala1DocumentgDocument Style Style\s0  zN8F I. ׃  2ka5TechnicalTechnical Document Style)WD (1) . a6TechnicalTechnical Document Style)D (a) . a2TechnicalTechnical Document Style<6  ?  A.   a3TechnicalTechnical Document Style9Wg  2  1.   2Ca4TechnicalTechnical Document Style8bv{ 2  a.   a1TechnicalTechnical Document StyleF!<  ?  I.   a7TechnicalTechnical Document Style(@D i) . a8TechnicalTechnical Document Style(D a) . 2_3CvezDoc InitInitialize Document Stylez   0*0*0*  I. A. 1. a.(1)(a) i) a) I. 1. A. a.(1)(a) i) a)DocumentgPleadingHeader for Numbered Pleading PaperE!n    X X` hp x (#%'0*,.8135@8:=~>>ih@header;Ax 4 <D  #FxX  Pg9CXP# reference<;#FxX  Pg9CXP#itemizeX1=&V 8F ` hp xr#FxX  Pg9CXP#header2>I ` hp x`    #FxX  Pg9CXP# 2~F?^B@OaCA DBEheading 3?F` hp x #FxX  Pg9CXP# footer!@!!#d\  PCP#CitatorFormat Secretary's Citator Output FileAW r5-#d6X@`7Ͽ@# XX  X B r5-S  BFormat DownloadFormat Downloaded DocumentBiޛ r5- XX    \ #d6X@`7Ͽ@#2ILCgFDGE2GF2JFM7V,,6%TriangleoF4=(g4O7V ,*g4çFM7VEC/0Default Para,6%Default Paragraph FontO7V -*g4çFM7VED;1;2#Xx6X@QX@##d6X@Q@#toc 1M7V.,6%toc 1ToF4=(g4O7V .*g4çFM7VEE34!(#B` hp x (#toc 2M7V/,6%toc 2ToF4=(g4O7V /*g4çFM7VEF56` !(#B` hp x (#2CUG2{LH2NI2PJ2Stoc 3M7V0,6%toc 3ToF4=(g4O7V 0*g4çFM7VEG78` !(# ` hp x (#toc 4M7V1,6%toc 4ToF4=(g4O7V 1*g4çFM7VEH9: !(# ` hp x (#toc 5M7V2,6%toc 5ToF4=(g4O7V 2*g4çFM7VEI;<h!(# ` hp x (#toc 6M7V3,6%toc 6ToF4=(g4O7V 3*g4çFM7VEJ=>!(#` hp x (#2\KuUL2UM21XN2cZtoc 7M7V4,6%toc 7ToF4=(g4O7V 4*g4çFM7VEK?@toc 8M7V5,6%toc 8ToF4=(g4O7V 5*g4çFM7VELAB!(#` hp x (#toc 9M7V6,6%toc 9ToF4=(g4O7V 6*g4çFM7VEMCD!(#B` hp x (#index 17V7,6%index 1ToF4=(g4O7V 7*g4çFM7VENEF` !(# ` hp x (#2bO2\P2^Q+aRbindex 27V8,6%index 2ToF4=(g4O7V 8*g4çFM7VEOGH` !(#B` hp x (#toa heading,6%toa heading4=(g4O7V 9*g4çFM7VEPIJ!(# ` hp x (#caption7V:,6%captionToF4=(g4O7V :*g4çFM7VEQEK;L#Xx6X@QX@##d6X@Q@#_Equation Ca,6%_Equation Captiong4O7V ;*g4çFM7VER;M;N#Xx6X@QX@##d6X@Q@#2|eScTcU}wdVdDefault Paragraph FoDefault Paragraph FontS11#Xx6X@DQX@##d6X@DQ@#_Equation Caption_Equation CaptionT11#Xx6X@DQX@##d6X@DQ@#a1Paragraph+%X,1. a. i. (1) (a) (i) 1) a)%8=(%  H*%FU$ a2Paragraph+%X,1. a. i. (1) (a) (i) 1) a)%8=(%  H*%FV/ 2_' =('87=F7*'Ç.7=.E_.   2*Ç.7=G@6FDocument Style=('87=FG*'Ç.7=.E`56` ` ` 3*Ç.7=H@6FDocument Style=('87=FH*'Ç.7=.Ea7 8 . 4*Ç.7=I@6FDocument Style=('87=FI*'Ç.7=.Eb 9: 2bocehmdmep`nfn5*Ç.7=J@6FDocument Style=('87=FJ*'Ç.7=.Ec ;< 6*Ç.7=K@6FDocument Style=('87=FK*'Ç.7=.Ed*=>   7*Ç.7=L@6FDocument Style=('87=FL*'Ç.7=.Ee?@` ` ` 8*Ç.7=M@6FRight-Aligned Paragraph Numbers*'Ç.7=.Ef8AB@   2rgoh/pipjhq9*Ç.7=N@6FRight-Aligned Paragraph Numbers*'Ç.7=.EgACD@` `  ` ` ` 10Ç.7=O@6FDocument Style=('87=FO*'Ç.7=.Eh0E F    11Ç.7=P@6FRight-Aligned Paragraph Numbers*'Ç.7=.EiJGH` ` @  ` `  12Ç.7=Q@6FRight-Aligned Paragraph Numbers*'Ç.7=.EjSIJ` `  @  2UukGrlrmsnt13Ç.7=R@6FRight-Aligned Paragraph Numbers*'Ç.7=.Ek\KL` `  @hh# hhh 14Ç.7=S@6FRight-Aligned Paragraph Numbers*'Ç.7=.EleMN` `  hh#@( hh# 15Ç.7=T@6FRight-Aligned Paragraph Numbers*'Ç.7=.EmnOP` `  hh#(@- ( 16Ç.7=U@6FRight-Aligned Paragraph Numbers*'Ç.7=.EnwQR` `  hh#(-@pp2 -ppp 2woupAvqvrKw17Ç.7=V@6FDocument Style=('87=FV*'Ç.7=.EoFST *  ׃  18Ç.7=W@6FTechnical Document Style7=FW*'Ç.7=.Ep&UV  . 19Ç.7=X@6FTechnical Document Style7=FX*'Ç.7=.Eq&WX  . 20Ç.7=Y@6FTechnical Document Style7=FY*'Ç.7=.Er*YZ    2wzsxtxuByvy21Ç.7=Z@6FTechnical Document Style7=FZ*'Ç.7=.Es'[\   22Ç.7=[@6FTechnical Document Style7=F[*'Ç.7=.Et&]^   23Ç.7=\@6FTechnical Document Style7=F\*'Ç.7=.Eu4_$`     24Ç.7=]@6FTechnical Document Style7=F]*'Ç.7=.Ev&ab  . 2O}wzx.{y{z|25Ç.7=^@6FTechnical Document Style7=F^*'Ç.7=.Ew&cd  . Format Downl@6FFormat Downloaded Document=Fc*'Ç.7=.ExUgh XX    X\ #d6X@7@#Word222Null@6FWord222Null_' =('87=Fp*'Ç.7=.Ey1{1|#/x PX##/x PX#Normal7=r@6FNormal>_' =('87=Fr*'Ç.7=.Ez1}1~#Xj\  PG;XP##/x PX#2{}|}~.HEADING 7t@6FJ>_' =('87=Ft*'Ç.7=.E{0p Zwp x (#DDDDDD#&n P&P# 4 hp x (##&n P&P# HEADING 6v@6Ff>_' =('87=Fv*'Ç.7=.E|0p Zwp x (#DDDDDD#&n P&P# 4 hp x (##&n P&P# HEADING 5w@6F>_' =('87=Fw*'Ç.7=.E}0p Zwp x (#DDDDDD#&n P&P# 4 hp x (##&n P&P# HEADING 4x@6F>_' =('87=Fx*'Ç.7=.E~0 Zwp x (#rr#&n P&P# 4 hp x (##&n P&P# 24wNORMAL INDEN@6F>_' =('87=Fy*'Ç.7=.E'4 <DL!T$#&n P&P##&n P&P#enumlev1=z@6F>_' =('87=Fz*'Ç.7=.E$p  N hp x (#aa#&n P&P#4` hp x (##&n P &P#footnote ref@6Ffootnote reference'87=F{*'Ç.7=.ER#V\  P!UP#page number@6Fpage number_' =('87=F~*'Ç.7=.E22f0Ǝ26Ç.7=@6Ffootnote text =('87=F*'Ç.7=.E>4??USlist.7=@6Flist >_' =('87=F*'Ç.7=.E>??endnote refe@6Fendnote reference'87=F*'Ç.7=.ERR#Xj\  P"G;XP##c P#7P#line number@6Fline number_' =('87=F*'Ç.7=.EOO#Xj\  P$G;XP##c P%7P#26ܒHighlight@6FMiddle Article Highlight7=F*'Ç.7=.E''#G }&Y##\9> (P'YP#Headline=@6FHeadline for newsletter87=F*'Ç.7=.E''#> }(Y##\9> (P)YP#2nd line Hea@6F2nd line headline'87=F*'Ç.7=.E''#b> }*Y##\9> (P+YP#Graphics hea@6FHeadlines for graphics87=F*'Ç.7=.E** #o> P},YP##\9> (P-YP# 2XfFGraphics bod@6Fchart data _' =('87=F*'Ç.7=.E** #Alo> P}.YXP##\9> (P/YP# Article head@6FHeadline for new article7=F*'Ç.7=.E*'#r"z0C# #\9> (P1YP# endnote text@6Fendnote text' =('87=F*'Ç.7=.EYO#X}xP27XP##I2P3QP#27Ç.7=@6FDefault Paragraph Font87=F*'Ç.7=.Eww#X}xP87XP##&sxP97&P#2ϛ<pq^HEADING 9@6F >_' =('87=F*'Ç.7=.E'34 <DL!T$#c P:7P##c P;7P#HEADING 8@6F >_' =('87=F*'Ç.7=.E'34 <DL!T$#c P<7P##c P=7P#28Ç.7=@6FDocument Style=('87=F*'Ç.7=.E` ` ` 29Ç.7=@6FDocument Style=('87=F*'Ç.7=.E  . 2Νeef˜p^30Ç.7=@6FDocument Style=('87=F*'Ç.7=.E  31Ç.7=@6FDocument Style=('87=F*'Ç.7=.E  32Ç.7=@6FDocument Style=('87=F*'Ç.7=.E*   33Ç.7=@6FDocument Style=('87=F*'Ç.7=.E` ` ` 2f-Ÿ34Ç.7=@6FRight-Aligned Paragraph Numbers*'Ç.7=.E8@   35Ç.7=@6FRight-Aligned Paragraph Numbers*'Ç.7=.EA@` `  ` ` ` 36Ç.7=@6FDocument Style=('87=F*'Ç.7=.E0    37Ç.7=@6FRight-Aligned Paragraph Numbers*'Ç.7=.EJ` ` @  ` `  2E38Ç.7=@6FRight-Aligned Paragraph Numbers*'Ç.7=.ES` `  @  39Ç.7=@6FRight-Aligned Paragraph Numbers*'Ç.7=.E\` `  @hh# hhh 40Ç.7=@6FRight-Aligned Paragraph Numbers*'Ç.7=.Ee` `  hh#@( hh# 41Ç.7=@6FRight-Aligned Paragraph Numbers*'Ç.7=.En` `  hh#(@- ( 2I?ĥ42Ç.7=@6FRight-Aligned Paragraph Numbers*'Ç.7=.Ew` `  hh#(-@pp2 -ppp 43Ç.7=@6FDocument Style=('87=F*'Ç.7=.EF *  ׃  44Ç.7=@6FTechnical Document Style7=F*'Ç.7=.E&  . 45Ç.7=@6FTechnical Document Style7=F*'Ç.7=.E&  . 2{@46Ç.7=@6FTechnical Document Style7=F*'Ç.7=.E*    47Ç.7=@6FTechnical Document Style7=F*'Ç.7=.E'   48Ç.7=@6FTechnical Document Style7=F*'Ç.7=.E&   49Ç.7=@6FTechnical Document Style7=F*'Ç.7=.E4$     2\",ƫ50Ç.7=@6FTechnical Document Style7=F*'Ç.7=.E&  . 51Ç.7=@6FTechnical Document Style7=F*'Ç.7=.E&  . 52Ç.7=@6F: >_' =('87=F*'Ç.7=.E'4 <DL!T$#&n P>&P##&n P?&P#53Ç.7=@6Ffootnote reference'87=F*'Ç.7=.E>#V\  P@UP#2R54Ç.7=@6FDefault Paragraph Font87=F*'Ç.7=.E55Ç.7=@6Ffootnote text =('87=F*'Ç.7=.E* ??US56Ç.7=@6Fendnote reference'87=F*'Ç.7=.E>>#Xj\  PAG;XP##B\  PBUP#57Ç.7=@6F_Equation Caption'87=F*'Ç.7=.E;;#XX2PCQXP##I2PDQP#2d-cHIGHLIGHT 1@6FItalics and Bold('87=F*'Ç.7=.E DRAFT ON=@6FHeader A Text = DRAFT and Date*'Ç.7=.E X 8#x6X@E7X@#`] (#EDRAFTă `;(#@D3 1, 4D  ӷDRAFT OFF@6FTurn Draft Style off87=F*'Ç.7=.ED      LETTER LAND@6FLetter Landscape - 11 x 8.5F*'Ç.7=.E    '3   2ݷcFcc noLEGAL LAND@6FLegal Landscape - 14 x 8.5=F*'Ç.7=.E   'A   LETTER PORT@6FLetter Portrait - 8.5 x 11=F*'Ç.7=.E  3'   LEGAL PORT@6FLegal Portrait - 8.5 x 147=F*'Ç.7=.E  A'   TITLE7=@6FTitle of a Document87=F*'Ç.7=.E* ă2dj^BLOCK QUOTE@6FSmall, single-spaced, indented*'Ç.7=.E HIGHLIGHT 2@6FLarge and Bold=('87=F*'Ç.7=.E HIGHLIGHT 3@6FLarge, Italicized and Underscored*'Ç.7=.E  LETTERHEAD@6FLetterhead - date/margins7=F*'Ç.7=.E!  X  3'   * 3' Ѓ   2I\<m<INVOICE FEE@6FFee Amount for Math InvoiceF*'Ç.7=.E F, $0  MEMORANDUM@6FMemo Page Format('87=F*'Ç.7=.E   * M E M O R A N D U M ă y<N dddy INVOICE EXP@6FExpense Subtotals for Math Invoice*'Ç.7=.E!" ,p, $0INVOICE TOT@6FTotals Invoice for Math Macro*'Ç.7=.E#$ p,p, $02[[[NINVOICE HEAD@6FHeading Portion of Math Invoice*'Ç.7=.E%&   p,X 9 I. A. 1. a.(1)(a) i) a)#x6X@F7X@# XX  *$HHީ  ӧ   XX  I. A. 1. a.(1)(a) i) a)Ҳ#x6X@G7X@# XX  *$HHީSMALL7=@6FSmall Typestyle=('87=F*'Ç.7=.E'(FINE.7=@6FFine Typestyle=('87=F*'Ç.7=.E)*LARGE7=@6FLarge Typestyle=('87=F*'Ç.7=.E+,2[[6EXTRA LARGE@6FExtra Large Typestyle87=F*'Ç.7=.E-.VERY LARGE@6FVery Large Typestyle87=F*'Ç.7=.E/0ENVELOPE=@6FStandard Business Envelope with Header'Ç.7=.E.12 V,  X  , 8 I. A. 1. a.(1)(a) i) a)#x6X@H7X@#    `   Style 14=@6FSwiss 8 Pt Without Margins=F*'Ç.7=.E'3'4#Co> PIQP##)a [ PJQ)P#2 sStyle 12=@6FDutch Italics 11.5'87=F*'Ç.7=.E'5'6#)^ `> XiKQ)X##)a [ PLQ)P#Style 11=@6FInitial Codes for Advanced II*'Ç.7=.EȔ 78#)a [ PMQ)P# dn  #  [ b, oT9 ! I. A. 1. a.(1)(a) i) a)#)a [ PNQ)P# ## b, oT9 !#)^ `> XiOQ)X#`e%(Advanced Legal WordPerfect II Learning Guide   x I. A. 1. a.(1)(a) i) a)#)a [ PPQ)P# ## b, oT9 !#)^ `> XiQQ)X#Advanced Legal WordPerfect II Learning Guide   xw I. A. 1. a.(1)(a) i) a)#)a [ PRQ)P# ## b, oT9 !#)^ `> XiSQ)X#   Copyright  Portola Systems, Inc. 1987, 1988`e%APage  w#)a [ PTQ)P# ## b, oT9 !#)^ `> XiUQ)X#   Page ``e%)Copyright  Portola Systems, Inc. 1987, 1988 Style 37=@6FDutch Roman 11.5 with Margins/Tabs*'Ç.7=.E9:#)a [ PVQ)P# n  ## b, oT9 !Style 47=@6FSwiss 8 Point with Margins=F*'Ç.7=.EG;<#Co> PWQP# dd  #  2TyStyle 17=@6FDutch Roman 11.5 Font87=F*'Ç.7=.E7=>#)a [ PXQ)P# dn Style 27=@6FDutch Italic 11.5'87=F*'Ç.7=.E'?@#)^ `> XiYQ)X#Style 57=@6FDutch Bold 18 Point87=F*'Ç.7=.E'A'B#T~> pZQTp##)a [ P[Q)P#Style 77=@6FSwiss 11.5>_' =('87=F*'Ç.7=.E'C'D#)ao> P\Q)P##)a [ P]Q)P#2Q   SStyle 67=@6FDutch Roman 14 Point87=F*'Ç.7=.E'E'F#w [ P^QP##)a [ P_Q)P#Style 10=@6FInitial Codes for Advanced=F*'Ç.7=.EV GH#)a [ P`Q)P# dn   #  [ b, oT9 ! I. A. 1. a.(1)(a) i) a)#)a [ PaQ)P# ## b, oT9 !#)^ `> XibQ)X#`e%)Advanced Legal WordPerfect Learning Guide   u I. A. 1. a.(1)(a) i) a)#)a [ PcQ)P# ## b, oT9 !#)^ `> XidQ)X#Advanced Legal WordPerfect Learning Guide   u I. A. 1. a.(1)(a) i) a)#)a [ PeQ)P# ## b, oT9 !#)^ `> XifQ)X#   Copyright  Portola Systems, Inc. 1987, 1988`e%APage   I. A. 1. a.(1)(a) i) a)#)a [ PgQ)P# ## b, oT9 !#)^ `> XihQ)X#   Page ``e%)Copyright  Portola Systems, Inc. 1987, 1988 Style 87=@6FInitial Codes for BeginningF*'Ç.7=.EV IJ#)a [ PiQ)P# dn  ## b, oT9  [  I. A. 1. a.(1)(a) i) a)#)a [ PjQ)P# ## b, oT9 #)^ `> XikQ)X#`^e%)Beginning Legal WordPerfect Learning Guide   v I. A. 1. a.(1)(a) i) a)#)a [ PlQ)P# ## b, oT9 #)^ `> XimQ)X#Beginning Legal WordPerfect Learning Guide   v I. A. 1. a.(1)(a) i) a)#)a [ PnQ)P# ## b, oT9 #)^ `> XioQ)X#   Copyright  Portola Systems, Inc. 1987, 1988`e%APage   I. A. 1. a.(1)(a) i) a)#)a [ PpQ)P# ## b, oT9 #2 1 dGStyle 97=@6FInitial Codes for Intermediate*'Ç.7=.ET KL#)a [ PrQ)P# dn  ## b, oT9 Њ [  I. A. 1. a.(1)(a) i) a)#)a [ PsQ)P# ## b, oT9 #)^ `> XitQ)X#`e%'Intermediate Legal WordPerfect Learning Guide   z I. A. 1. a.(1)(a) i) a)#)a [ PuQ)P# ## b, oT9 #)^ `> XivQ)X#Intermediate Legal WordPerfect Learning Guide   z I. A. 1. a.(1)(a) i) a)#)a [ PwQ)P# ## b, oT9 #)^ `> XixQ)X#   Copyright  Portola Systems, Inc.`e%APage   I. A. 1. a.(1)(a) i) a)#)a [ PyQ)P# ## b, oT9 #)^ `> XizQ)X#   Page ``e%)Copyright  Portola Systems, Inc. 1987, 1988 Update7=@6FInitial Codes for Update Module*'Ç.7=.Ee MN#)a [ P{Q)P# dn  ##  [ b, oT9 ! I. A. 1. a.(1)(a) i) a)#)a [ P|Q)P# ## b, oT9 !#)^ `> Xi}Q)X#`Ye%%Legal WordPerfect 5.0 Update Class Learning Guide   } I. A. 1. a.(1)(a) i) a)#)a [ P~Q)P# ## b, oT9 !#)^ `> XiQ)X#Legal WordPerfect 5.0 Update Class Learning Guide   }58Ç.7=@6FFormat Downloaded Document=F*'Ç.7=.EUOP XX    #\ #d6X@7@#Bld/Und7=@6FBold and Underline Text87=F*'Ç.7=.EQR  2q^qq@a1Agenda.E+'*Ç.Agenda Items=('87=FGD!*'7=*'%STD*  a2Agenda.E+'*Ç.Agenda Items=('87=FGD!*'7=*'UVa3Agenda.E+'*Ç.Agenda Items=('87=FGD!*'7=*'WXa4Agenda.E+'*Ç.Agenda Items=('87=FGD!*'7=*'YZ2qqTqq6a5Agenda.E+'*Ç.Agenda Items=('87=FGD!*'7=*'[\a6Agenda.E+'*Ç.Agenda Items=('87=FGD!*'7=*']^a7Agenda.E+'*Ç.Agenda Items=('87=FGD!*'7=*'_`a8Agenda.E+'*Ç.Agenda Items=('87=FGD!*'7=*'ab2Wka159.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'8st@   a259.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'Auv@` `  ` ` ` a359.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'Jwx` ` @  ` `  a459.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'Syz` `  @  2!? a559.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'\{|` `  @hh# hhh a659.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'e}~` `  hh#@( hh# a759.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'n` `  hh#(@- ( a859.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'w` `  hh#(-@pp2 -ppp 2G$![""#a160.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'8@   a260.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'A@` `  ` ` ` a360.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'J` ` @  ` `  a460.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'S` `  @  2'y$/%%&a560.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'\` `  @hh# hhh a660.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'e` `  hh#@( hh# a760.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'n` `  hh#(@- ( a860.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'w` `  hh#(-@pp2 -ppp 2)p')((X)1t >.x(Dt—Document Style >f.RK+P—!t >f—+b56` ` ` a129f—+b—!tRight-Aligned Paragraph NumberswH(RK+P8@   a229f—+b—!tRight-Aligned Paragraph NumberswH(RK+PA@` `  ` ` ` a329f—+b—!tRight-Aligned Paragraph NumberswH(RK+PJ` ` @  ` `  2-/**+T,a429f—+b—!tRight-Aligned Paragraph NumberswH(RK+PS` `  @  a529f—+b—!tRight-Aligned Paragraph NumberswH(RK+P\` `  @hh# hhh a629f—+b—!tRight-Aligned Paragraph NumberswH(RK+Pe` `  hh#@( hh# a729f—+b—!tRight-Aligned Paragraph NumberswH(RK+Pn` `  hh#(@- ( 20O-!./G0a829f—+b—!tRight-Aligned Paragraph NumberswH(RK+Pw` `  hh#(-@pp2 -ppp NORMAL INDENT ' 4 <DL!T$#&n P&P##&n P&P#footnote referencefootnote reference4#V\  PUP#footnote textfootnote text US????US2311Y22endnote referenceendnote reference44#XO\  PUXP##B\  PUP#a11I.E+')*'0Right-Aligned Paragraph Numbers')8?I u*')8ij@   a21I.E+')*'0Right-Aligned Paragraph Numbers')8?I u*')Akl@` `  ` ` ` a31I.E+')*'0Right-Aligned Paragraph Numbers')8?I u*')Jmn` ` @  ` `  2@K3 7XJ:K="i~'^09CSS999S]+9+/SSSSSSSSSS//]]]Ixnnxg]xx9?xgxx]xn]gxxxxg9/9MS9ISISI9SS//S/SSSS9?/SSxSSIP!PZ9+ZM999+99999999S/xIxIxIxIxIlnIgIgIgIgI9/9/9/9/xSxSxSxSxSxSxSxSxSxSxIxSxRxSxSxS]SxIxIxInInInZnIxigIgIgIgIxSxSxSxZxSxZxS9/9S999Su]ZZxSg/gCg9g9g/xSbxSxSxSxSxn9n9n9]?]?]?]ZgFg/gMxSxSxSxSxSxSxxZgIgIgIxSg9xS]?g9xSi+SS88WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNdYzzzzCCCCqodYYYYYYYYYYY8888dddddddnddddddd<?xxx,?x6X@`7X@Hy.X80,H;X\  P6G;PI7jC:,Xj\  P6G;XP7nC:,kXn4  pG;XCCddCYCdYzzzzCCCCqodYYYYYYYYYYY8888dddddddnddddddd"i~'^:DPddDDDdp4D48dddddddddd88pppX|pDL|pp||D8D\dDXdXdXDdd88d8ddddDL8ddddX`(`lD4l\DDD4DDDDDDDDd8XXXXXX|X|X|X|XD8D8D8D8ddddddddddXdbdddpdXXXXXlX~|X|X|X|XdddldldD8DdDDDdplld|8|P|D|D|8dvddddDDDpLpLpLpl|T|8|\ddddddl|X|X|Xd|DdpL|Dd~4ddC$CWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNHxxH\dDXddddd8@d<@d<DDXXdDDxddzHxxHvppDXd<"dxtldpxxd2Coddȧ8CCdr2C28ddddddddddCCrrrdzNdzoȐC8CtdCdoYoYCdo8Co8odooYNCodddYO,OhCddddCoCȜCCddFdCNC2Cdddd,dCddzzzzzzzzzzCCCCozdddddddYYYYY8888dddddddndddddYd"i~'^:DTddDDDd4D48ddddddddddDDd||||DXp||dp||ppL8LTdDddXdX8dd88X8ddddLL8dXXXLP8PlD4lTDDD4DDDDDDdDd8|d|d|d|d|dX|X|X|X|XD8D8D8D8dddddddddpX|ddddpXd|d|d|d|dXXlXx|X|X|X|XdddldldD8DdDDDddllXp8pHpDp@p8dtdddd|L|L|LdLdLdLllpHp8pTddddddplpLpLpLdpDddLpDpdx4ddC,CWddddddddddddddddddddddddddddddddddddddddNHxxHhdLdddddd8@d<@d<DDppdDDxddzHxxHkddDpd<"dxtldxxd,,,,,,,F,F\Wim,==Fq,q,`WWWWWWWWWW,,iqiOvW`\`\Wdi0A`Omd````WSiWiW\W===`W,W\S\S9S`00\0`W\WJJA`OiWSO=#=i,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,SWW\0\`WWWWWWW0qWW,SA,,WWWWWWOWWWWWWW\\\\\0000`d`````W`iiii\\`WWWWWWSSSSS0000W`WWWWWOW````S\"i~'^5>M\\>>>\}0>03\\\\\\\\\\>>}}}\rryrr>Qygyrr\grrggF3FM\>\\Q\Q3\\33Q3\\\\FF3\QyQQFI3Ic>0cM>>>0>>>>>>\>\3r\r\r\r\r\yyQrQrQrQrQ>3>3>3>3y\\\\\\\\\gQr\\\\gQ\r\r\r\r\yQyQycyQnrQrQrQrQ\\\c\c\>3>\>>>\\ccyQg3gBg>g;g3y\jy\y\\\yrFrFrF\F\F\FccgBg3gM\\\\\\ygcgFgFgF\g>y\\Fg>g\n0\\=(=WddddddddddddddddddddddddddddddddddddddddNBnnB_\F\\\\\\3;\7;\7>>gg\??n\\pBnnBb\\>g\7"yyyy\njc\}nn\2Nodd8CCdr2C28ddddddddddCCrrrdNdzzozzzC8CrdCddYdYCdo88d8odddNN8oYdYNF,FrCddddCoCCCddFdCNCz2Ndddd,dC5dyCdPn<I\\>>>\g0>03\\\\\\\\\\33gggQyyrg>Frgygrr>3>T\>Q\Q\Q>\\33\3\\\\>F3\\\\QX%Xc>0cT>>>0>>>>>>>>\3QQQQQwyQrQrQrQrQ>3>3>3>3\\\\\\\\\\Q\Z\\\g\QQQyQyQycyQtrQrQrQrQ\\\c\c\>3>\>>>\gcc\r3rIr>r>r3\l\\\\y>y>y>gFgFgFgcrMr3rT\\\\\\crQrQrQ\r>\gFr>\t0\\=!=WxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNBnnBT\>Q\\\\\3;\7;\7>>QQ\??n\\pBnnBmgg>Q\7"yyyy\njc\gnn\.=f\\3==\i.=.3\\\\\\\\\\==iii\zzpG\zpfzz=3=j\=\fQfQ=\f3=f3f\ffQG=f\\\QH(H_=\\\\=f===\\@\=G=.=\\\\(\=7\i=\Ie77=jc.=7<\\zzzzGGGGipf\\\\\\QQQQQ3333\f\\\\\e\ffff\f"i~'^5>g\\>>>\g0>03\\\\\\\\\\>>ggg\yyrF\yrgyy>3>j\>\gQgQ>\g3>g3g\ggQF>g\\\QI(I_>0_j>>>0>>>>>>\>g3\\\\\QyQyQyQyQD3D3D3D3g\\\\gggg\\g\\\\pg\\\QQ_QyQyQyQyQ\\\_\gjF3FgF>Fgg__gy3ySy>yIy3ggg\\QQQgFgFgFg_y^y>yjgggggg_yQyQyQgy>ggFy>\0\\=2=WxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNBnnBa\>\\\\\\7>\7>\7>>\\\??n\\pBnnBsgg>\\7"yyyy\nlc\gnn\.=M\\'==\|.=.3\\\\\\\\\\==|||\ppzpp=Qzfzpp\fppffG3GM\=\\Q\Q3\\33Q3\\\\GG3\QzQQGI2Ic=\f\\=\===ff@\=G=zf.G\\\\2\=3\|=\Ie77=j`.=79\\ppppppzpppp====z|fp\\\\\\\zQQQQQ3333\\\\\\\e\\\\\Q\"i~'^ %,77\V%%%7>%7777777777>>>0eOIIOD>OO%*ODaOO>OI>DOOgOOD%%37%07070%777V7777%*77O77055;%;3%%%%%%%%%%%7O0O0O0O0O0aHI0D0D0D0D0%%%%O7O7O7O7O7O7O7O7O7O7O0O7O6O7O7O7>7O0O0O0I0I0I;I0OED0D0D0D0O7O7O7O;O7O;O7%%7%%%7M>;;O7DD,D%D%DO7AO7O7O7O7aOI%I%I%>*>*>*>;D.DD3O7O7O7O7O7O7gOO;D0D0D0O7D%O7>*D%O7E77%%WMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN(BB(37%07777j7#TT7!#TT7T!%%007n&&Bn77lCTn(nBB(A\\>>n%07\n!"IIIITTenn7TnB@;7>lBBn7VVVVVVVVVVVVVVVVVVVVVV%-77\V%%7>%7777777777>>>1eOIIOC=OO%+OCbOO=OI=COOhOOC%%47%17171%777V7777%+77O77155%T7,OOOOOO=7111111I111117777777<7777777"i~'^"(22TN"""28"2222222222888,\HBBH>8HH"&H>XHH8HB8>HH^HH>"".2",2,2,"222N2222"&22H22,006"6."""""""""""2H,H,H,H,H,XAB,>,>,>,>,""""H2H2H2H2H2H2H2H2H2H2H,H2H1H2H2H282H,H,H,B,B,B6B,H?>,>,>,>,H2H2H2H6H2H6H2""2"""2F866H2>>(>">">H2;H2H2H2H2XHB"B"B"8&8&8&86>*>>.H2H2H2H2H2H2^HH6>,>,>,H2>"H28&>"H2?22!!WFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN$<<$.2",2222`2 LL2 LL2L"",,2d"">>\g0>03\\\\\\\\\\>>ggg\yyyyyF\yrrygryyrr>3>g\>\\Q\Q>\g33\3g\\\FF3gQy\QF>(>g>0gg>>>0>>>>>>\>\3y\y\y\y\y\yQyQyQyQyQF3F3F3F3g\\\\ggggrQy\\\\rQ\r\y\y\y\yQyQygyQyQyQyQyQ\\\g\ggF3F\F>F\gggy\r3r_r>rFr3ggg\\yFyFyFgFgFgFggrcr3rgggggggyrgrFrFrF\r>ggFr>r\0\\=3=WddddddddddddddddddddddddddddddddddddddddNBnnB\\F\\\\\\07\7>\7>>\\\??n\\pBnnBigg>\\7"yyyy\nyc\gnn\.Gf\\3==\i.=.3\\\\\\\\\\==iii\zzzzzG\zppzfpzzpp=3=i\=\\Q\Q=\f33\3f\\\GG3fQz\QG@(@i=\\\\=f===\\@\=G=p.G\\\\(\=1\o=\Ie77=j\.=77\\zzzzzzzzzzzGGGGipp\\\\\\\QQQQQ3333\f\\\\\e\ffffQ\"i~'^09]SS999S]+9+/SSSSSSSSSS99]]]Sxnxxng?Snxgx]nxxxxn9/9aS9S]I]I9S]/9]/]S]]I?9]SxSSIC%CW9+Wa999+999999S9]/xSxSxSxSxSxxInInInInI>/>/>/>/x]SSSSx]x]x]x]xSxSx]SSxSxSf]xSxSxSxIxIxWxIx{nInInInISSSWS]a?/?]?9?]]WW]n/nKn9nCn/x]xx]x]SSxxIxIxI]?]?]?]WnUn9nax]x]x]x]x]x]xxWnInInIx]n9x]]?n9xSz+SS8-8WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN>400000000009>9+@04242079$4+<744440-909020!!!4002-2--42O4020(($4+90-+!!94)0400000000000G2-2-2-2-2-744040404094949494-004240402-40220044002-2-2-2-442-7-7077-7-94944444$42++)7474444(4)0(N$2+00020000-00000000t0>77+0c<<&&209<!!&>>400000000009>9+@04242079$4+<744440-909020!!!4002-2--42O4020(($4+90-+!!9-002240000000>00-$000000+0000000222224744444049999224000000G-----0400000+04444-22n\hT2<?xxx,?x6X@`7X@Hy.X80,H;X\  P6G;PI7jC:,Xj\  P6G;XPJ7nC:,kXn4  pG;X\M5hC:,- Xh*f9 xr G;XXN6jC:,DM*Xj9 xOG;XP2a=5,&a\  P6G;&P O2e=5,Ep&e4  pG;&\Q0_=5,- &_*f9 xr G;&XP:% ,0'J:\  P6G;JPP,%X)J,\  P6QJPI(!XI,(\  P6Q,P{,C8*XE,C*f9 xQXl2K=.Xd &K9 xyQ&.y.G8*X(G4  pQxy.K8?XqK\  P@QPxI-!&X,-\  P@Q,PdddCRoNoNNF2[dCYddddd7>d<d<CCYYdCCddCYCggFy>\0\\=2=WxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNBnnBa\>\\\\\\7>\7>\7>>\\\??n\2y S'  % X'O Federal Communications Commission FCC 98176   yxdddy  X4 \ԛZ% X4`a(# DRAFT AUGUST 13, 1998 (order.o) ZՊ #&a\  P6G;&P#bP#&J\  P6Q&P#Before the  FEDERAL COMMUNICATIONS COMMISSION 53Washington, DC 20554  S' \ In the Matter of) ) Amendment of the Commission's)  S'Rules Regarding Installment Payment)WT Docket No. 9782  Sp'Financing for Personal Communications) Services (PCS) Licensees) ` `  S '\ FOURTH REPORT AND ORDER  S '   SX'\ Adopted: July 27, 1998 Released: August 19, 1998 By the Commission:  S'  S'bParagraph No. (#  S@'(#\I.Introductionp"(#1  S'II.Backgroundp"(#2  S'A.` ` C Block Proceedingsp"(#2  S'B.` ` Part 1 Proceedingsp"(#4  S'III.Licenses to be Reauctionedp"(#5  Sx'IV.Eligibility for Participationpp"(#10  SP'V.Application of General Auction Rules to C Blockpp"(#20  S('A.` ` Backgroundpp"(#21  S'B.` ` Discussionpp"(#22  S'` ` 1. Competitive Bidding Designpp"(#22  S'` ` 2. Activity Rulespp"(#24  S'XX` ` 3.X Reserve Price, Minimum Opening Bid, and Minimum Bid Increments(# pp"(#26  S`'X` ` 4. Electronic Filing(#pp"(#30  S8'XX` ` 5.X Upfront Payment(# pp"(#31  S 'XX` ` 6.X Down Payment and Full Payment(# pp"(#35  S 'XX` ` 7.X Amendments and Modifications of Applications(# pp"(#38  S!' XX` ` 8.X Bid Withdrawal, Default, and Disqualification(# pp"(#40  S"'` ` 9. AntiCollusion Rulespp"(#42  Sp#'` ` 10. Bidding Credits(# pp"(#45  SH$'` ` 11. Installment Payment Programpp"(#49  S %'VI.Procedural Matters and Ordering Clausespp"(#51  S%'A.` ` Final Regulatory Flexibility Analysispp"(#51"%0*''ZZ$"Ԍ S'B.` ` Paperwork Reduction Act Analysispp"(#52  S'C.` ` Ordering Clausespp"(#53  S'Appendix A:` ` List of Parties(#`  S`'Appendix B:` ` Comments on Issues Addressed in Part 1 Third Report and Order(#`  S:'Appendix C:` ` Revised Rules(#`  S'Appendix D:` ` Final Regulatory Flexibility Analysis(#`  Sr'(#\:? I. INTRODUCTION \  S" ' 1. ` ` In this C Block Fourth Report and Order, we resolve the Commission's proposals in  S 'its C Block Further Notice of Proposed Rule Making ("C Block Further Notice"). s {Od 'ԍSee Amendment of the Commission's Rules Regarding Installment Payment Financing For Personal  {O.'Communications Services (PCS) Licensees, WT Docket No. 9782, Second Report and Order and Further Notice  {O'of Proposed Rule Making, 12 FCC Rcd 16,436 ("C Block Second Report and Order" and "C Block Further  {O'Notice"). The Commission received 14 comments, 11 reply comments and one ex parte filing in response to the  {O'C Block Further Notice. Appendix A contains a list of full and abbreviated names of commenting parties. In so doing, we set forth the rules that will govern reauctions of C block spectrum surrendered to the Commission  S 'pursuant to the C Block Second Report and Order& s yO'ԍAmendment of the Commission's Rules Regarding Installment Payment Financing For Personal  {O'Communications Services (PCS) Licensees, WT Docket No. 9782, Second Report and Order and Further Notice  {Ob'of Proposed Rule Making, 12 FCC Rcd 16,436 ("C Block Second Report and Order" and "C Block Further  {O,'Notice"). and the C Block Order on Reconsideration of the  S 'Second Report and Order ("C Block Reconsideration Order"), p s yO'ԍAmendment of the Commission's Rules Regarding Installment Payment Financing For Personal  {O`'Communications (PCS) Licensees, WT Docket No. 9782, Order on Reconsideration of the Second Report and  {O*'Order, 13 FCC Rcd 8345 (1988) ("C Block Reconsideration Order"). We have received 11 petitions for  {O'reconsideration and clarification of the C Block Reconsideration Order. See Petitions for Reconsideration and  {O'Clarification of Action in Rulemaking Proceedings, Report No. 2283, 63 Fed. Reg. 38,404 (July 16, 1998). as well as any other C block spectrum available for reauction.  S'<W II. BACKGROUND Đ\  S' A.C Block Proceedings  Sr'2. ` ` Consistent with Congress' mandate to promote the participation of small business and  SJ'other "designated entities" in the provision of spectrumbased services,J(s {O$'ԍSee Communications Act of 1934, as amended ("Communications Act"),  309(j)(4)(D), 47 U.S.C.  309(j)(4)(D). the Commission limited"J0*%%ZZ"  S'eligibility in the initial C block auctions to entrepreneurs and small businesses.^s {Oh'ԍSee 47 C.F.R.  24.709 and 24.720; Implementation of Section 309(j) of the Communications Act  {O2'Competitive Bidding, PP Docket 93253, Fifth Report and Order, 9 FCC Rcd 5532 (1994), Fifth Memorandum  {O'Opinion and Order, 10 FCC Rcd 403 (1994), Sixth Report and Order, 11 FCC Rcd 136 (1995). The C block auction  S'concluded on May 6, 1996, s {Of'ԍSee "FCC Announces Winning Bidders in the Auction of 493 Licenses to Provide Broadband PCS in  {O0'Basic Trading Areas: Auction Event No. 5," Public Notice, DA 96-716 (released May 8, 1996).  and the subsequent reauction of defaulted licenses concluded on July 16,  S'1996,"\Js {O 'ԍSee "FCC Announces Winning Bidders in the Reauction of 18 Licenses to Provide Broadband PCS in  {Od 'Basic Trading Areas: Auction Event No. 10," Public Notice, DA 96-1153, 11 FCC Rcd. 8183 (released July 17, 1996)." with a total of 90 bidders winning 493 licenses. The winning bidders were permitted to pay 90  S'percent of their net bid price over the tenyear license term.n s {O 'ԍSee 47 C.F.R.  24.711(b)(3). The net bid price is equal to the winning bid less any bidding credit for  {O`'which the licensee was eligible. See 47 C.F.R.  24.712.  S8'3.` ` The Commission decided in the C Block Second Report and Order (as modified by the  S'C Block Reconsideration Order) to allow each C block licensee to elect one of four options for each of its licenses: resumption of payments under the licensee's original installment payment plan, disaggregation, amnesty, or prepayment. The array of choices was intended to provide limited relief  S'to financially troubled licensees without harming the integrity of the auction process.  s {O'ԍSee Second Report and Order, 12 FCC Rcd at 16,43738 para. 2 and 16,44446 paras. 1517. The Commission required C block licensees to file a written election notice, specifying whether they would resume payments under the terms of the original installment payment plan or would proceed under one  S$ 'of the alternative options. ^$ \ s {O 'ԍSee C Block Second Report and Order, 12 FCC Rcd at 16,47076 paras. 7076; C Block Reconsideration  {O'Order at para. 6165; and "Wireless Telecommunications Bureau Announces June 8, 1998 Election Date for  {O'Broadband PCS C Block Licensees," Public Notice, DA 98741 (released April 17, 1998). Included with the C Block Second Report and Order was the C Block  S 'Further Notice, in which the Commission sought comment on proposed changes to the C block rules  S 'to govern the reauction of surrendered spectrum in the C block.Y \ s {O'ԍSecond Report and Order, 12 FCC Rcd at 16,437 para. 1. The language of the C Block Second Report  {O'and Order suggests that there will be a single C block reauction; however, for reasons discussed below, we now anticipate that there could be more than one reauction.Y The Wireless Telecommunications Bureau (the "Bureau") announced by public notice on April 17, 1998 an election date of June 8, 1998  S 'and a payment resumption date for C block licensees of July 31, 1998.  s {O"'ԍSee "Wireless Telecommunications Bureau Announces June 8, 1998 Election Date for Broadband PCS C  {O#'Block Licensees," Public Notice, DA 98741 (released April 17, 1998). "` 0*%%ZZ8"Ԍ S' B.Part 1 Proceedings  S'4. ` ` On December 31, 1997, we released the Part 1 Third Report and Order in which we adopted general competitive bidding rules to supplant, wherever practicable, auction rules that were  Sb'specific to each auctionable service or class of service. bs {O'ԍ See Amendment of Part 1 of the Commission's Rules Competitive Bidding Procedures, WT Docket  {O'No. 9782,Third Report and Order and Second Further Notice of Proposed Rule Making, 13 FCC Rcd 374  {O^'(released December 31, 1997) ("Part 1 Third Report and Order" and "Part 1 Further Notice"); see also Implementation of Section 309(j) of the Communications Act Competitive Bidding, PP Docket No. 93253,  {O'Second Report and Order, 9 FCC Rcd 2348 ("Competitive Bidding Second Report and Order"); Amendment of  {O 'Part 1 of the Commission Rules Competitive Bidding Proceeding, Order, Memorandum Opinion and Order  {O 'and Notice of Proposed Rule Making, WT Docket No.9782, 12 FCC Rcd 5686 (1997) ("Part 1 Notice"). Our purpose was to streamline competitive bidding regulations, eliminate unnecessary rules, and increase the overall efficiency and consistency of  S'the auction process.ys {O 'ԍ See Part 1 Third Report and Order, 13 FCC Rcd at 376 para.1y In the process, we resolved many of the issues that had been raised in the C  S'Block Further Notice.|s {O2'ԍ Issues addressed in the C Block Further Notice and subsequently resolved, either in whole or in part  {O'under the Part 1 Third Report and Order include: competitive bidding design, bidding procedures; activity rules; reserve price, minimum opening bid, and minimum bid increments; preauction application procedures; upfront payment; down payment and full payment; amendments and modifications of applications; bid withdrawal, default, and disqualification; anticollusion rules; small business size and bidding credits; and the installment payment program.| Accordingly, future C block reauctions will adhere to Part 1 rules,j"s {O'ԍSee 47 C.F.R. Part 1Practice and Procedure.j as amended, to the extent applicable. Where our rules in Part 1 are not determinative, bidders will  S'continue to look to Part 24 rules,os {O'ԍSee 47 C.F.R. Part 24Personal Communications Services.o as amended in this C Block Fourth Report and Order.  SP '  III. LICENSES TO BE REAUCTIONED Đ\  S ' A.Background  S '5.` ` In the C Block Further Notice, the Commission proposed that it reauction: (1) all licenses representing C block spectrum returned pursuant to the disaggregation, prepayment, or  Sb'amnesty options; and (2) all C block licenses held as a result of defaults.mbFs {OH!'ԍC Block Further Notice, 12 FCC Rcd at 16,474 para. 83.m The Commission believed that including all available licenses in a reauction would allow it fairly and efficiently to facilitate the":0*%%ZZ" rapid provision of service to the public and also would allow for the most efficient aggregation of  S'licenses.:s {O@'ԍId.:  S' B.Discussion  S8'6.` ` We adopt the Commission's proposal in the C Block Further Notice to reauction all available C block licenses held by the Commission. Several commenters agree, and no commenter  S'disagrees, with this proposal.Zs {O 'ԍSee AirGate Comments at 2, 3; Conestoga Comments at 7; Duluth Comments at 1; NextWave Comments at 1, 2; Starcom Comments at 1; Airgate Reply at 2; and NextWave Reply at 12. Our recent modifications to the C block payment options in the C  S'Block Reconsideration Order provide no reason to deviate from this basic approach. Any C block license that becomes available for reauction after the next C block reauction will be reauctioned in a subsequent reauction as soon as practicable.  S& '7.` ` NatTel, Starcom, and CPCSI argue that the next reauction should include licenses  S 'owned by entities that have filed for bankruptcy protection.w s yOR'ԍNatTel Comments at 28; Starcom Comments at 1; and CPCSI Reply at 13.w CPCSI maintains that if licenses held by C block bankruptcy petitioners are excluded from the next reauction, the uncertainty surrounding the  S 'fate of those licenses will make business planning difficult for other C block entities.D Ds yO'ԍCPCSI Reply at 23.D NatTel urges the Commission to amend its rules in order to be able to revoke automatically the licenses of licensees  S^'that have declared bankruptcy.H^s yO'ԍNatTel Comments at 68.H  S'8.` ` In the Part 1 Third Report and Order, we addressed the issue of whether the Commission can immediately reclaim and reauction licenses held by a licensee that declares  S'bankruptcy.qd s {O'ԍPart 1 Third Report and Order, 13 FCC Rcd at 398 para. 39.q As we stated there, we are confident of our position that the Commission can reclaim licenses quickly since the Commission conditions licenses upon payment and requires automatic  Sp'cancellation in the event of nonpayment.:p s {O 'ԍId.: Nevertheless, until controlling precedent is established by the courts, or legislation addressing conflicting rights is enacted, a delay in the reauction of licenses in  S 'bankruptcy litigation may occur.ZB  s {OH#'ԍId.; see also FCC Report to Congress on Spectrum Auctions, WT Docket No. 97150, Report, FCC 97353 (released October 9, 1997) at 39 (recommending that Congress clarify that FCC licensees that default on their installment payments may not use bankruptcy litigation to refuse to relinquish their spectrum licenses for"$0*%%$" reauction); Statement of Dan Phythyon, Chief, Wireless Telecommunications Bureau Before the Subcommittee on Communications, Committee on Commerce, Science, and Transportation, United States Senate, on Wireless Telecommunications Bureau Oversight (May 13, 1998) (asking that Congress act to protect spectrum licenses from being held captive by bankruptcy delays); and Third Annual Commercial Mobile Radio Service (CMRS)  {O'Competition Report, Report No. WT 9813, Third Report, FCC 9891 (released June 11, 1998) at Separate Statement of Chairman William E. Kennard (suggesting that Commission should work with Congress to eliminate regulatory obstacles to the development of wireless communications services posed by bankruptcy delays). The pendency of bankruptcy proceedings involving certain C block" 0*%%ZZ"  S'licenses9\s {Or 'ԍIn re GWI PCS1, Inc., No. 39739676SAF11 (Bankr. N.D.Tex. April 24, 1998); In re Pocket  {O< 'Communications, Inc., No. 9754105(ESD) (Bankr. D.Md.); In re NextWave Personal Communications, Inc., 98 21529 (ASH) (Bankr. S.D.N.Y.).9 makes it impossible for us to resolve at this time whether those licenses will be available in the next C block reauction. We do not intend, however, to delay a reauction of other available C block licenses because of such litigation. Such a delay easily could become the first in an interminable series of delays, undermining our primary goal of getting licenses into the hands of parties that will provide service to the public and competition in the market. For this reason, we believe that the public will realize a greater benefit if we auction all available C block spectrum as soon as practicable than it will if we postpone a reauction until we have resolved all issues connected with every bankruptcy proceeding. Licenses made available in any bankruptcy proceeding will be included in the next appropriate reauction.  Sp'9.` ` CPCSI asks that the Commission also address the issue of whether a reauction will additionally encompass licenses, such as those won by CPCSI, that are the subject of petitions pending  S 'before the Commission.k s {O'ԍCPCSI Comments at 910; see also CPCSI Reply at 35.k Because the Commission granted CPCSI's application for review on  S 'December 24, 1997,V\ s {O 'ԍSee Carolina PCS I Limited Partnership Request for Waiver of Section 24.711(a)(2) of the Commission's Rules Regarding BTA Nos. B016, B072, B091, B147, B177, B178, B312, B335, and B436,  {O'Frequency Block C, Memorandum Opinion and Order, 12 FCC Rcd 22,938 (1997).V and granted its license applications on December 29, 1997, s {OD'ԍSee "Application Grants to Carolina PCS I Limited Partnership," Public Notice, DA 972714 (released December 29, 1997). CPCSI's request is moot as to the licenses at issue in its application for review. The decision will be made on a case by case basis whether to include in a reauction any other C block licenses held by the Commission that are the subject of pending Commission or judicial proceedings." 0*%%ZZ' "  S'  IV. ELIGIBILITY FOR PARTICIPATION Đ\  S' A.Background  S`' 10.` ` In the C Block Second Report and Order, the Commission decided that the public  S:'interest considerations mandated by Section 309(j) of the Communications ActT:s {O'ԍSee 47 U.S.C.  309(j)(3).T would be furthered by applying to a C block reauction the same eligibility rules that had been used for the original C block  S'auction.z Zs {O 'ԍC Block Second Report and Order, 12 FCC Rcd at 16,448 paras. 2122.z The Commission, therefore, deemed eligible to participate in a C block reauction: (1) all  S'applicants qualifying, as of the start of the reauction, as entrepreneurs under the Commission's rules;Q!s {ON 'ԍSee 47 C.F.R.  24.709.Q and (2) all entities that had filed a shortform application (FCC Form 175) to participate in, and had  Sr'been eligible to participate in, the original C block auction.v"r~s {O'ԍC Block Second Report and Order, 12 FCC Rcd at 16,448 para. 22.v Accordingly, the Commission decided that all entities that had participated in the original C block auction would be eligible to participate in the next reauction; however, the Commission prohibited C block licensees that return spectrum pursuant to the disaggregation or prepayment options from reacquiring their returned spectrum for a  S 'period of two years from the start date of the next C block reauction.h# s {O'ԍId. at 16,457 para. 42 and 16,470 para. 69.h This prohibition extended to  S 'qualifying members of the licensee's control group, and their affiliates.b$ s {O'ԍId.; see 47 C.F.R.  24.709.b  SZ' 11.` ` In the C Block Further Notice, the Commission sought comment on whether it should restrict participation in the C block reauction to entities that have not defaulted on any payments owed  S 'the Commission.% 4 s {O'ԍC Block Further Notice, 12 FCC Rcd at 16,474 para. 84; see also 47 U.S.C.  309(j)(5). The Commission asked for comment on possible alternatives to excluding defaulters from participation in a reauction. One possibility was for the Commission to have an expedited hearing on a winning defaulter's financial qualifications, allowing the defaulter to attempt to  S'rebut a presumption that it is not financially qualified.& s {O'ԍC Block Further Notice at 12 FCC Rcd at 16,474 para. 84; see also 47 C.F.R.   24.832(e), 1.2108(d)(3). Another idea was for the Commission to require defaulters to submit either more detailed financial information at the application stage or a  SD'larger upfront payment.m'D s {O$'ԍC Block Further Notice, 12 FCC Rcd at 16,474 para. 84.m The Commission observed that C block licensees would not be in default"D'0*%%ZZ"  S'simply by virtue of having elected the alternative payment options established in the C Block Second  S'Report and Order.:(s {OB'ԍId.:  S' 12.` ` In the C Block Reconsideration Order, we modified the alternative payment options to,  Sf'inter alia, divide the amnesty option into two categories: "pure amnesty" and "amnesty/prepayment."r)fZs {O`'ԍC Block Reconsideration Order, 13 FCC Rcd at 8360 para. 37.r We decided that, while licensees returning spectrum pursuant to the "pure amnesty" option would not be prohibited from reacquiring their returned spectrum, licensees returning spectrum pursuant to the "amnesty/prepayment" option would have to forgo, for a period of two years from the start date of  S'next C block reauction, eligibility to reacquire their spectrum.:*s {OT 'ԍId.: This prohibition extends to qualifying  S'members of a licensee's control group, and their affiliates.:+~s {O'ԍId.: In addition, we retained the twoyear prohibition on the reacquisition of spectrum returned pursuant to the disaggregation or prepayment  SP 'options established in the C Block Second Report and Order.,P s {O'ԍId. at 8360 para. 38, 836162 para. 41, 8367 para. 50, and 837476 paras. 6872. We also responded to petitions for  S* 'reconsideration of the C Block Second Report and Order filed by Cellexis International, Inc. and RFW  S 'PCS Inc., both of which disagree with comments filed by Nextel in response to the C Block Further  S 'Notice.-( s {O 'ԍSee petitions for reconsideration of the C Block Second Report and Order filed by Cellexis International,  {O'Inc. at 78 and RFW PCS Inc. at 67; see also Reply of MFRI Incorporated at 67 and Reply of Wireless  {O'Ventures, Inc. at 4, both responding to oppositions to petitions for reconsideration of the C Block Second Report  {O~'and Order. As discussed below, Nextel asks that the Commission open eligibility for a reauction to "all  S 'qualified bidders." We disagreed with Nextel's proposal, affirming the Commission's ruling in the C  S 'Block Second Report and Order to limit eligibility for participation in C block reauctions to applicants  Sl'meeting the Commission's definition of entrepreneur.[.l s {O'ԍC Block Reconsideration Order, 13 FCC Rcd at 8374 para. 69; see also C Block Second Report and  {Oh'Order, 12 FCC Rcd at 16,448 para. 22. Section 24.709 of the Commissions rules defines an entrepreneur for purposes of C and F block auctions without actually using the term 'entrepreneur': XNo application is acceptable for filing and no license shall be granted for frequency block C or  {O 'frequency block F, unless the applicant, together with its affiliates and persons or entities that  {OT!'hold interests in the applicant and their affiliates, have gross revenues of less than $125 million  {O"'in each of the last two years and total assets of less than $500 million at the time the applicant's shortform application (Form 175) is filed.  "#-0*%%#"Ԍ {O'[emphasis in original; italicized terms are defined in 47 C.F.R.  24.720] 47 C.F.R.  24.709(a)(1); see also id.  24.709(a)(2).["l".0*%%ZZ"Ԍ S'ԙ B.Discussion  S' 13.` ` We retain the C block eligibility parameters established in the C Block Second Report  S'and Order. The following entities will be eligible for C block reauctions: (1) entities that filed an FCC Form 175 shortform application for, and were eligible for, the original C block auction and (2) entities qualifying as entrepreneurs under Section 24.709 of the Commission's rules, as of the deadline  S'for the filing of shortform applications for the reauction.Q/"s {O 'ԍSee 47 C.F.R.  24.709.Q While, under these rules, entities that participated in the original C block reauction will be eligible for C block reauctions, we retain the  S'eligibility restriction established in the C Block Second Report and Order, as modified in the C Block  S'Reconsideration Order, for licensees that surrender licenses pursuant to the disaggregation, prepayment, and/or "amnesty/prepayment" options. Such licensees will be ineligible to reacquire their surrendered licenses through reauction or by any other means for a period of two years from the start  S( 'date of the next C block reauction.0\( s {O|'ԍC Block Reconsideration Order, 13 FCC Rcd at 836061 paras. 37, 38, and 41 and 8367 para. 50. Licensees that surrender licenses pursuant to the "pure amnesty" option will remain eligible to reacquire those  {O'surrendered licenses in a reauction or through a secondary market transaction. Id. at para. 37.  S ' 14.` ` The Commission's decision in the C Block Second Report and Order to impose a twoyear bar on the eligibility of licensees to reacquire licenses they return pursuant to the disaggregation and prepayment options sparked comment. NextWave wants all licensees to be permitted to  Sb'participate in a reauction, regardless of their election of an alternative payment option.J1bs yO'ԍNextWave Comments at 34.J Sprint, on the other hand, urges the Commission to bar licensees electing the amnesty option from bidding on their  S'surrendered spectrum in a reauction.E2h s yO'ԍSprint Reply at 14.E We dealt with the respective concerns of NextWave and Sprint  S'in the C Block Reconsideration Order.v3 s {O'ԍC Block Reconsideration Order, 13 FCC Rcd at 8376 paras. 7172.v As we stated there, we believe that the modified approach we  S'adopted in that order addresses the concerns of both of these parties.K4 s {O'ԍSee id. at para. 72.K Therefore, we affirm the decision we made in that order. Starcom asks that the qualifications of licensees electing any of the alternative payment options be subjected to a higher level of scrutiny regarding their financial  SL'qualification to deal with the requirements of additional licenses.G5Ls yO$'ԍStarcom Comments at 2.G We believe that a higher level of scrutiny is not warranted. As noted above, C block licensees that have elected alternative payment"$ 50*%%ZZ"  S'options are not defaulters.q6s {Oh'ԍSee C Block Further Notice, 12 FCC Rcd at 16,474 para. 84.q Moreover, all applicants for C block reauctions will be required to pay a  S'substantial upfront payment, which should help ensure that only serious, qualified bidders participate.$7Zs {O'ԍSee Implementation of Section 309(j) of the Communications Act Competitive Bidding, PP Docket  {O'No. 93253, Second Report and Order, 9 FCC Rcd 2348 at para. 169 (1994); see also infra Section V.B.5.$  S'15.` ` Because we are not planning to include C block licenses that remain involved in  S`'bankruptcy proceedings in the next C block reauction,I8`s {O 'ԍSee supra para. 8.I there likely will be more than one reauction for C block. Accordingly, we must evaluate whether to allow applicants for and participants in the original C block auction to remain eligible to participate in all future C block reauctions, regardless of whether they still qualify as entrepreneurs under the Commission's rules at the deadline for filing a shortform application. While we believe that flexibility in this regard is appropriate, we believe that fairness to other future bidders prevents our providing an open eligibility standard indefinitely. Consequently, in order to be eligible for any C block reauction that begins more than two years from the start date of the next C block reauction, an applicant must qualify as an entrepreneur under the  S 'Commission's rules at the time of filing its shortform application.9 Hs yO'ԍAn entity will not be eligible to receive bidding credits unless it meets our small business size  {O'requirements at the time of the reauction. See discussion infra Section V.B.10.  S '16.` ` Several parties commented on the eligibility rules established in C Block Second  S 'Report and Order, with most commenters supporting the Commission's decision.(:X s yO'ԍAlpine Comments at 2; CIRI Comments at ii, 24; Conestoga Comments at 56; NextWave Comments at 2; Omnipoint Comments at 23; Alpine Reply at para. 1, 25; DiGiPH Reply at 25, 6; Fidelity Reply at 23; NextWave Reply at 2; Omnipoint Reply at 13.( As mentioned, however, Nextel urges the Commission not to limit a reauction just to entrepreneurs but rather to allow  S\'"all qualified bidders" to participate.O;\ s yO'ԍNextel Comments at iii, 112.O Nextel argues that a restricted auction skews the marketplace and that the increasing level of competition in the wireless arena makes it less likely that small  S 'business entrepreneurs can survive.J< R s {O'ԍId. at 4, 7, 1112.J According to Nextel, the Commission could enable small businesses to bid competitively by providing them bidding credits and permitting them to partition and  S'disaggregate 30 MHz licenses after the auction.N=s {O@"'ԍId. at ii, 5, 911, 12.N No other commenter supports Nextel's views, and" v=0*%%ZZk"  S'several parties oppose them.>s {Oh'ԍSee, e.g., Alpine Reply at 1, 25; DiGiPH Reply at 25, 6; Fidelity Reply at 23; NextWave Reply at 2; and Omnipoint Reply at 13. As stated, we recently denied Nextel's request in the  S'C Block Reconsideration Order, and the record in this proceeding provides us with no basis to alter our decision.  Sb'17.` ` The Commission received considerable comment on whether and how defaulters on payments owed the Commission should be able to participate in a reauction. Several parties would preclude defaulters from eligibility, with some commenters identifying parties that have defaulted on any Commission payment, one commenter specifying entities that have defaulted on a PCS license obligation, and another commenter targeting parties in default on Commission payments at the time  S'their reauction upfront payment is due.?"s {O\ 'ԍSee AirGate Comments at 2, 45 (Defaulters on PCS license obligations should be excluded.); Conestoga Comments at 6 ("The FCC should restrict participation in a reauction to entities that have not defaulted on any FCC payments."); CIRI Comments at 56 ("[R]estrict participation in the C block reauction to entities that have neither defaulted on any Commission installment payment obligations nor sought bankruptcy protection." [citation omitted]); NatTel Comments at 68 (The Commission should amend its rules so that it can find automatically that any licensee that declares bankruptcy is financially unfit to be a licensee. Prior defaulters should be allowed to participate in a reauction, provided that they make good on all outstanding indebtedness to the Commission prior to or at the time that their reauction upfront payment is due.); and Fidelity Reply at 3 ("[E]ntities that have defaulted on FCC payment obligations should not be eligible to participate in the CBlock reauction."). CPCSI, however, would allow defaulters to participate under  Sr'the rationale that they are no different from licensees electing an alternative payment option.M@r s yO'ԍCPCSI Comments at ii, 1012.M CIRI argues that a reauction should be restricted to parties that have neither defaulted on Commission  S" 'payment obligations nor sought bankruptcy protection,FA" L s yO'ԍCIRI Comments at 56.F pointing out that "[t]he Debt Collection Improvement Act generally prohibits the provision of any federal loan to an entity that is delinquent  S 'on any nontax debt owed to a federal agencySB s {ON'ԍSee 31 U.S.C.  3720B(a).S. . . ." Commenters oppose allowing (or requiring)  S 'defaulters to submit more detailed financial information at the application stage,C ns {O'ԍSee AirGate Comments at 2, 46; Duluth Comments at 1; Starcom Comments at 1. but exhibit little reaction to the idea of holding an expedited hearing or requiring defaulters to submit a higher upfront  SZ'payment amount.DZs {O!'ԍSee CPCSI Comments at ii, 1012, (opposing both ideas) for the only comment.  S '18.` ` The Commission's FCC Form 175 shortform application for all auctions requires applicants to certify that they are not in default on any Commission debt and that they are not" D0*%%ZZ"  S'delinquent on any nontax debt owed to any Federal agency.ZEs {Oh'ԍSee 47 C.F.R.  1.2105(a)(2)(x).Z We believe that, in order to preserve the integrity of C block reauctions and to support our ongoing effort to streamline the licensing process, it is necessary to limit participation in C block reauctions to entities that can make the certification. Consequently, to be eligible to participate in any future C block reauction, an applicant must certify on its shortform application that it is not in default on any Commission licenses and not  S8'delinquent on any nontax debt owed to any Federal agency.Fz8Zs yO2'ԍUnder the Commission's rules, a licensee that fails to submit payment on an installment obligation will automatically have an additional 90 days in which to submit its required payment without being considered delinquent. Any licensee making its required payment during this period will be assessed a late fee equal to five percent of the amount of the past due payment. If any licensee fails to make the required payment at the close of the 90day period, it will automatically be provided with a subsequent 90day grace period. Any licensee making a required payment during this subsequent period will be assessed a late payment fee equal to 10 percent  {O 'of the amount of the past due payment. Id. 1.2110(f)(4). At the same time, we believe that past business misfortunes do not inevitably preclude an entity from being able to meet its present and future responsibilities as a Commission licensee. Therefore, we will allow "former defaulters," i.e., applicants that have defaulted or been delinquent in the past, but have since paid all of their outstanding nonInternal Revenue Service Federal debts and all associated charges or penalties, to be eligible to participate in C block reauctions, provided that they are otherwise qualified.  S '19.` ` In its comments, CIRI asks that eligibility for a reauction include the Indian tribal  S 'affiliation exemption featured in the Commission's rules for broadband PCS auctions.nG s {O4'ԍCIRI Comments at 79; see 47 C.F.R.  24.720(l)(11).n CIRI's request is unnecessary. Neither the Commission nor any party has proposed eliminating or altering this  S 'exemption, which applied in the original C block auction. Moreover, in our recent Part 1 Third  S 'Report and Order, we adopted a proposal by CIRI to include this exemption in our general definition  S\'of the term "affiliate."H\. s {O*'ԍPart 1 Third Report and Order, 13 FCC Rcd at 392393 para. 28; 47 C.F.R.  1.2110(b)(4)(xi).  S 'q V. APPLICATION OF GENERAL AUCTION RULES TO C BLOCK\  S' A.Background  Sl'20.` ` The Commission tentatively concluded in the C Block Further Notice that the next reauction will be conducted in conformity with the general competitive bidding rules in Part 1, Subpart Q, of the Commission's rules, as revised, consistent with other auctions for wireless services. The Commission also proposed to use Part 24 rules to the extent they do not conflict with the  S'Commission's Part 1 rules or with rules specifically adopted or proposed in the C Block Second  S'Report and Order and C Block Further Notice. The Commission sought comment on the application" H0*%%ZZ"  S'of Part 1 rules to the following aspects of the C block reauction: competitive bidding mechanisms;HIs yOh'ԍ 47 C.F.R.  1.2104.Hք  S'bidding application and certification procedures and prohibition of collusion;GJXs {O'ԍ Id.  1.2105G submission of upfront  S'payment, down payment and filing of longform applications;TKs {O:'ԍ Id.  1.2106, 1.2107.T procedures for filing longform  S'applications;HL|s {O 'ԍ Id.  1.2108.H and procedures regarding license grant, denial, and default.Ms {O6 'ԍ Id.  1.2109; see C Block Further Notice, 12 FCC Rcd at 16,476 para. 90.֐  S8'21.` ` Subsequently, in the Part 1 Third Report and Order, we adopted general competitive bidding rules that apply to each auctionable service or class of service, including the C block of  S'broadband personal communications services.{Ns {O*'ԍ See Part 1 Third Report and Order, 13 FCC Rcd at 376 para. 1.{ In that order, we addressed, and in some cases  S'completely or partly resolved, the issues raised in the C Block Further Notice, except for the two  S'issues discussed above in this C Block Fourth Report and Order, i.e., licenses to be reauctioned and eligibility for participation in C block reauctions. We also clarified that specific auction procedures not established by Commission rules will be established by the Bureau in advance of each auction,  S& 'pursuant to public notice and comment.VOZ& 2 s {O'ԍSee Balanced Budget Act of 1997 ("Balanced Budget Act"), Pub. L. 10533, 111 Stat. 251, 259 (1997) (requiring that, in the scheduling of any competitive bidding, an adequate period be allowed before issuance of bidding rules, to permit notice and comment on proposed auction procedures).V However, the Commission received sufficient comment in  S 'response to the C Block Further Notice to make further comment unnecessary for many of the C block  S 'reauction procedures. Consequently, in the remainder of this C Block Fourth Report and Order, we  S 'review the issues raised in the C Block Further Notice and addressed in the Part 1 Third Report and  S 'Order. Where necessary, we clarify the effect of the Part 1 Third Report and Order on the rules for future C block reauctions. In cases where C block auction rules are the same as or parallel to F block  S>'auction rules, we also clarify the effect of the Part 1 Third Report and Order on the rules for F block reauctions. We have included, as Appendix B herein, a discussion of the comments relevant to these  S'issues filed in response to the C Block Further Notice.  S' B.Discussion Đ  SR' 1.` ` Competitive Bidding Design  S'22.` ` The Commission tentatively concluded in the C Block Further Notice that it would award all licenses and spectrum in the C block reauction by means of a simultaneous multipleround" T O0*%%ZZe"  S'electronic auction.qPs {Oh'ԍC Block Further Notice, 12 FCC Rcd at 16,475 paras. 8688.q This type of auction would facilitate any aggregation strategies of bidders and provide the most information about license values during the auction. The Commission further tentatively concluded that telephonic bidding (instead of electronic bidding) should be permitted only in exceptional circumstances, and that those circumstances would be determined by the Bureau in each  S`'instance.NQ`Zs {OZ'ԍId. at 16,476 para. 89.N This tentative conclusion was prompted by the Commission's desire to conduct the reauction quickly, as well as by recent improvements in the Commission's electronic bidding  S'software.:Rs {O 'ԍId.: In the Part 1 Third Report and Order, we clarified that the Bureau, consistent with its  S'existing delegated authority,)S\~s {O 'ԍSee Amendment of Part 1 of the Commission's Rules Competitive Bidding Proceeding, WT Docket  {O 'No. 9782, Order, Memorandum Opinion and Order and Notice of Proposed Rule Making, 12 FCC Rcd 5686, 5697 para. 16 (1997).) would seek comment in advance of each auction on auctionspecific  S'issues, including the competitive bidding design of the auction.rTs {O'ԍPart 1 Third Report and Order, 13 FCC Rcd at 452 para. 134.r We note, as previously mentioned,  S'that there likely will be more than one C block reauction.JU4 s {On'ԍSee supra para. 15.J  SJ '23. ` ` Even though the Bureau normally would determine the bidding design of an auction,  S" 'because no commenter opposed the proposal for a simultaneous multipleround auction,LV" s {O'ԍSee infra Appendix B.L we believe that the simultaneous multipleround design is appropriate for the next C block reauction. If, however, in preparing for a C block reauction, the Bureau determines that another design might be warranted, it remains within the Bureau's authority to seek comment on, and to modify, the competitive bidding design of the reauction. The Commission received two comments addressing the subject of telephonic bidding, with one party supporting the proposal that telephonic bidding be permitted only in  S2'exceptional circumstances and the other party asking that telephonic bidding remain an option.:W2X s {O*'ԍId.: We have decided, on further consideration, to permit the use of telephonic bidding as an alternative to electronic bidding in the next C block reauction. In the recent local multipoint distribution service  S'(LMDS) auction (Auction No. 17),1X\s {OD"'ԍSee "Auction of Local Multipoint Distribution Service (LMDS) Licenses 138 Qualified Bidders," Public  {O#'Notice, DA 98230 (released February 6, 1998) (showing that telephonic bidding was an option for all LMDS auction bidders).1 telephonic bidding was a viable option; and telephonic bidding is"X0*%%ZZx" being made available to bidders in the upcoming phase II 220 MHz service auction (Auction No.  S'18).Ys {Oh'ԍ"Auction of the Phase II 220 MHz Service Licenses," Public Notice, DA 981010, at 3 (released May 29, 1998). We believe that allowing parties to use either electronic or telephonic bidding, as their circumstances dictate, will promote auction participation by as many qualified applicants as possible and is not inconsistent with our decision to require that, beginning January 1, 1999, all short and long S`'form applications for auctionable services be filed electronically.Z`Js {OJ'ԍSee Part 1 Third Report and Order, 13 FCC Rcd at 41011 para. 59 (amending 47 C.F.R.  1.2105(a) and 1.2107(c)).  S' 2.` ` Activity Rules  S'24. ` ` In the C Block Further Notice, the Commission tentatively concluded that a reauction should be conducted in three stages, as the Commission has done in other simultaneous multipleround  Sr'auctions.m[rs {O'ԍC Block Further Notice, 12 FCC Rcd at 16,476 para. 91.m The Commission proposed to use high activity requirements in C block reauctions, with bidders required to be more active in each subsequent stage than they had been in the last. These activity levels would be similar to those used in other auctions, such as requiring bidders to be active on eighty percent of their eligible licenses in Stage I, ninety percent in Stage II, and ninetyeight percent in Stage III. The Commission also proposed requiring the Bureau to use its delegated authority to schedule bidding rounds aggressively, to move quickly into the next stage of the auction when bidding activity falls, and to use higher minimum bid increments for very active licenses. In the  SZ'Part 1 Third Report and Order, we directed the Bureau to seek comment prior to the start of each  S4'auction on activity requirements for each stage of the auction and activity rule waivers.y\46s {O 'ԍPart 1 Third Report and Order, 13 FCC Rcd at 44748 paras. 12425.y  S'25. ` ` We believe that the proposal to conduct reauctions in three stages is reasonable for the next C block reauction, particularly in the absence of opposing comment and in light of the general  S'interest in beginning the reauction as soon as possible.L]s {O'ԍSee infra Appendix B.L The Bureau normally would determine this structure, however; and it remains within the Bureau's discretion to deviate from the proposed threestage structure if, after appropriate notice and comment, it determines that a different structure would  S'better serve the public interest. Given that the C Block Further Notice mentioned the eighty, ninety,  S'and ninetyeight percent activity levels as an example,m^Z s {O 'ԍC Block Further Notice, 12 FCC Rcd at 16,476 para. 91.m we continue to delegate to the Bureau determination of the specific activity levels to employ for each C block reauction. As proposed, the Bureau will use its delegated authority to schedule bidding rounds aggressively, move quickly into the next stage of the auction when bidding activity falls, and use higher minimum bid increments for very active licenses."V ^0*%%ZZ"Ԍ S'ԙ 3.` ` Reserve Price, Minimum Opening Bid, and Minimum Bid Increments (#`  S'26.` ` The Balanced Budget Act of 1997_s yO'ԍPub. L. 10533, 111 Stat. 251 (1997) (codified at 47 U.S.C.  309(j)(4)(F)). requires the Commission to prescribe methods by which a reasonable reserve price will be required or a minimum opening bid established, unless the  S`'Commission determines that neither is in the public interest.z``Xs {OX'ԍSee C Block Further Notice, 12 FCC Rcd at 16,47778 para. 92.z The terms "minimum opening bid" and  S8'"reserve price" are generally employed for different purposes.ra8s {O 'ԍPart 1 Third Report and Order, 13 FCC Rcd at 455 para. 140.r A minimum opening bid is the  S'minimum bid price set at the beginning of an auction below which no bids are accepted.pb|s {O, 'ԍC Block Further Notice, 12 FCC Rcd at 16,47778 para. 92.p A reserve  S'price is the minimum price below which an auctioneer will not sell an object.:cs {O'ԍId.:  S'27.` ` In the C Block Further Notice, the Commission stated that, in the C block reauction, employing a minimum opening bid would help make certain that the public is fairly compensated, the auction is expedited, and the Commission is able to make adjustments based on the competitiveness of  S" 'the auction.:d" s {Ob'ԍId.: The Commission sought comment on its proposal to use a minimum opening bid for a reauction, as well as on which methodology to employ and factors to consider in establishing  S 'minimum opening bids.:e 2 s {O'ԍId.: The Commission proposed minimum opening bids for each market equal to  S 'ten percent of the corresponding net high bid for the market in the original C block auction.:f s {O'ԍId.: The Commission asked commenters to explain whether this proposal would be reasonable or would result  SZ'in a substantial number of unsold licenses.:gZV s {OP'ԍId.: The Commission asked further whether the amount of the minimum opening bid should be capped and whether the Commission should establish a different  S 'amount.:h s {O 'ԍId.:  S'28.` ` After requesting comment on minimum opening bids in the C Block Further Notice,  S'we clarified in the Part 1 Third Report and Order that the Bureau has the authority to seek comment on minimum opening bids and reserve prices and to establish such mechanisms for each auction, consistent with the Bureau's role in managing the auction process and setting valuations for other"Fzh0*%%ZZ"  S'purposes.uis {Oh'ԍPart 1 Third Report and Order, 13 FCC Rcd at 45455 para. 139.u We instructed the Bureau to consider such factors as the amount of spectrum being auctioned, levels of incumbency, the availability of technology to provide service, the size of the geographic service areas, issues of interference with other spectrum bands, and any other relevant  S'factors that could reasonably affect valuation of the spectrum being auctioned.:jZs {O'ԍId.:  S8'29.` ` For the next C block reauction, we believe that the proposal of a minimum opening bid for each market equal to ten percent of the corresponding net high bid for the market in the original C block auction is appropriate. Because the Commission has already sought and received  S'comment on this issue,ks {OL 'ԍAppendix B, infra, summarizes comments received by the Commission on reserve price, minimum opening bid, and minimum bid increments. and because there is a strong public interest in beginning the next C block reauction as soon as possible, the Bureau will not seek further comment on a specific amount for a minimum opening bid for the next reauction. Instead, the specific amount of the minimum opening bid for each market will be listed in a public notice to be released by the Bureau in advance of the next C block reauction. The Bureau may exercise its discretion to set forth a minimum opening bid smaller than ten percent if, based upon further evaluation, the Bureau believes that a smaller amount is warranted.  S ' X` hp x (#%'0*,.8135@8:'period as short as 5 days for the filing of petitions to deny applications for licenses won at auction. See Balanced Budget Act of 1997,  3008; P.L 10533, 111 Stat. 251 (1997).i  S'#36.` ` The Part 1 Third Report and Order adopted a standard down payment of twenty  S'percent of an applicant's high bids, which is similar to the proposal in the C Block Further Notice.q {O"#'ԍPart 1 Third Report and Order, 13 FCC Rcd at 427 para. 91.q "|0*%%ZZb"  S'It also amended Sections 1.2109(a) of the Commission's rulesJ yOh'ԍ47 C.F.R.  1.2109(a).J to permit auction winners to make their final payments within ten business days after the designated  S'deadline, provided that they also pay a late fee equal to five percent of the amount due.vX {O'ԍSee Part 1 Third Report and Order, 13 FCC Rcd at 429 para. 94. v In  S'accordance with the 1997 Balanced Budget Act,  {O'ԍSee Balanced Budget Act of 1997, Pub. L. 10533,  3008, 111 Stat. 251, 269 (1997). The relevant provision states:  yOl ' XNotwithstanding section 309(b) of the Communications Act of 1934 (47 U.S.C. 309(b)), no application for an instrument of authorization for frequencies assigned under this title. . . shall be granted by the Commission earlier than 7 days following issuance of a public notice by the Commission of the acceptance for filing of such application or of any substantial amendment thereto. Notwithstanding section 309(d)(1) of such Act (47 U.S.C. 309(d)(1)), the Commission may specify a period (no less than 5 days following issuance of such public notice) for the filing of petitions to deny any application for an instrument of authorization for such frequencies.   {Ot'See Part 1 Third Report and Order, 13 FCC Rcd at 43132 para. 98 (seeking comment in the Second  {O>'Further Notice of Proposed Rule Making to have the period for filing petitions to deny not be shorter than five days) . the Part 1 Third Report and Order amended Sections 1.2108(b) and (c) to prohibit the Commission from granting a license earlier than seven days  S:'following issuance of the public notice announcing the application is accepted for filing.V:p yOJ'ԍ47 C.F.R.  1.2108(b) and (c).V  S'Additionally, the Part 1 Third Report and Order established that the filing periods for petitions to  S'deny, oppositions, and replies are to be no shorter than five days. {O'ԍPart 1 Third Report and Order, 13 FCC Rcd at 43132 para. 98; see also Balanced Budget Act of 1997, Pub. L. 10533,  3008, 111 Stat. 251, 269 (1997).  S'  S'$37.` ` The conclusions we reached in the Part 1 Third Report and Order do not conflict with  Sv'our proposals in the C Block Further Notice. Accordingly, we will apply the Part 1 rules, as amended. The Bureau will announce by public notice the deadline for petitions to deny. As discussed in the  S( 'Part 1 Third Report and Order, in order to preserve the integrity of the auction process, it is important to use an indicator of potential licensees' financial capability to attract capital to build out and operate systems. We believe that the use of one substantial down payment is a necessary tool to gauge an  S 'applicant's financial viability, its seriousness in building its system, and the likelihood of default.[ Z {O"'ԍSee id., 13 FCC Rcd at 427 para. 90.[ " 0*%%ZZq "  S'For these reasons, we repeal the Part 24 C block rules on down payment and full payment.W {Oh'ԍSee 47 C.F.R.  24.711(a)(2).W Pursuant to the same rationale, we also repeal the Part 24 F block rules on down payment and full  S'payment.QZ {O'ԍSee id.  24.716(a)(2).Q  S`'`  (#%'0*,.8135@8:; see also 47 C.F.R.  24.720. In order to ensure the integrity of C block  S'reauctions, the Commission retains the eligibility restriction established in the C Block Second Report  Sr'and Order, as modified in the C Block Reconsideration Order, for licensees that surrender licenses pursuant to the disaggregation, prepayment, and/or "amnesty/prepayment" options. Such licensees will be ineligible to reacquire their surrendered licenses through reauction or by any other means for a  S 'period of two years from the start date of the next C block reauction.\  {OP'ԍC Block Reconsideration Order, 13 FCC Rcd at 8360 para. 37, 836061 para. 38, 836162 para. 41, and 8367 para. 50. Licensees that surrender licenses pursuant to the "pure amnesty" option will remain eligible to  {O'reacquire those surrendered licenses in a reauction or through a secondary market transaction. Id. at para. 37. To further ensure auction integrity for the benefit of applicants as well as the general public, the Commission will restrict C block reauctions to entities not in default on any Commission debt and not delinquent on any nontax debt owed to any Federal agency. However, the Commission believes that past business misfortunes do not inevitably preclude an entity from being able to meet its present and future responsibilities as a Commission licensee. Therefore, the Commission will allow "former defaulters," i.e., applicants that have defaulted or been delinquent in the past, but have since paid all of their outstanding nonInternal Revenue Service Federal debts and all associated charges or penalties, to be eligible to participate in C block reauctions, provided that they are otherwise qualified.  SD'In the Part 1 Third Report and Order,\D yO'ԍAmendment of Part 1 of the Commission's Rules Competitive Bidding Procedures, WT Docket No.  {O'9782,Third Report and Order and Second Further Notice of Proposed Rule Making, 13 FCC Rcd 374 (released  {ON'December 31, 1997) ("Part 1 Third Report and Order" and "Part 1 Further Notice"). the Commission adopted general competitive bidding rules to supplant, wherever practicable, specific auction rules for each auctionable service or class of service. Accordingly, future C block reauctions will adhere to Part 1 rules, insofar as applicable. Part 1 rules are determinative for the following aspects of C block reauctions: competitive bidding design; activity rules; reserve price, minimum opening bid, and minimum bid increments; electronic filing; upfront payment; down payment and full payment; amendments and modifications of applications; bid withdrawal, default, and disqualification; anticollusion, and installment payment financing. Based"V* 0*%%ZZ" upon the record in this proceeding, the Commission sets a ceiling for minimum opening bids that is no more than ten percent of the amount of the net high bid for the corresponding market in the original C block auction. The Commission also sets the upfront payment amount for the next C block reauction at no higher than $.06 per MHz per pop. The Commission will require that the upfront payment for "former defaulters" be 50 percent more than that required from applicants that do not have a history of default. This increased upfront payment formula reflects the increased risk associated with these parties.  S'In the Part 1 Third Report and Order, the Commission adopted a schedule of bidding credits to be used in future auctions for all services. Applying the Part 1 schedule to the gross revenue thresholds under the Part 24 rules for small and very small C block and F block businesses, gives small business applicants in C block reauctions a fifteen percent bidding credit and very small business applicants a twentyfive percent bidding credit. Eligibility for bidding credits will be determined by the size of the applicant as of the deadline for filing shortform applications. Section 309(j) of the Communications Act of 1934, as amended, directs the Commission to disseminate licenses among a wide variety of applicants, including small businesses and other  SZ'designated entities.Z yO'ԍ#X\  P6G;H;P##C\  P6QH;P#47 U.S.C.  309(j)(3)(B). Section 309(j) also requires that the Commission ensure the development and rapid deployment of new technologies, products, and services for the benefit of the public, and recover for the public a portion of the value of the public spectrum resource made available for commercial  S'use.X {O'ԍ#X\  P6G;H;P##C\  P6QH;P#Id.  309(j)(3)(A), (C). The Commission believes that the C Block Fourth Report and Order promotes these goals while maintaining the fair and efficient execution of the auctions program.  Sl' F.Report to Congress  S'The Commission will send a copy of the C Block Fourth Report and Order, including this FRFA, in a report to Congress pursuant to the Small Business Regulatory Enforcement Fairness Act of  S'1996. See 5 U.S.C.  801(a)(1)(A). A copy of the C Block Fourth Report and Order and this FRFA  S'(or summary thereof) will be published in the Federal Register. See 5 U.S.C.  604(b). A copy of the  S'C Block Fourth Report and Order and this FRFA will also be sent to the Chief Counsel for Advocacy of the Small Business Administration.