Fact Sheet

Date:

Auction 18 began on 9/15/1998 and closed on 10/22/1998.

Round 173 (See PN DA 98-2143)
Licenses:

908 licenses:
3 Nationwide licenses (100 KHz paired)
30 Economic Area Grouping (EAG) licenses (150 KHz paired)
875 Economic Area (EA) licenses (100 KHz paired)

Spectrum

220-222 MHz Band

Bandwidth:

Block A thru E - 100 kHz ea, in 175 EAs (total 500 kHz)
Block F thru J - 150 kHz ea. in 6 EAGs (total 750 kHz)
Block K thru M - 100 kHz ea. nationwide licenses (total 300 kHz)

Winning Bidders:
44 bidders won 693 licenses
Rounds:
173
Qualified Bidders
54
Licenses Won:
693
Licenses Held by FCC:
215
Total Licenses:
908
Net Bids
$21,650,301
Gross Bids:
$26,119,598

 
 
 
General information and associated licensing parameters are provided below. Public Notices provide specific information regarding this auction. This fact sheet includes:

Key Dates

 

Event Date
Pre-Auction Seminar
8/6/1998
Form 175 (Short Form) Application Filing Deadline
8/17/1998; 5:30 pm ET
Upfront Payments Deadline (Wire Transfer)
8/31/1998; 6:00 pm ET
Orders for Remote Bidding Software
9/1/1998; 5:30 pm ET
Mock Auction
9/11/1998
Auction Start
9/15/1998
Auction Closed
10/22/1998
 

Licenses Offered

Phase I 220 MHz Service licensing was conducted by lotteries that awarded approximately 3,800 licenses (from approximately 59,000 applications) through random selection. Auction No. 18 awarded Phase II 220 MHz Service licenses through competitive bidding.
A total of 908 licenses were offered in this auction. Three (100 kHz) nationwide licenses, five (100 kHz) licenses in each of the 175 Economic Areas ("EAs"), and five (150 kHz) licenses in each of the 6 Economic Area Groupings ("EAGs").

Due Diligence

Potential bidders were reminded that there are a number of incumbent Phase I 220 MHz licensees already licensed and operating on frequencies that are subject to the upcoming auction. Such incumbents must be protected from harmful interference by Phase II 220 MHz licensees in accordance with the Commission's Rules. See 47 C.F.R. § 90.763. These limitations may restrict the ability of such geographic area licensees to use certain portions of the electromagnetic spectrum or provide service to certain areas in their geographic license areas.
In addition, potential bidders that were seeking licenses for geographic areas that are near the Canadian border should be aware that the use of some or all of the channels they acquired in the auction could be restricted as a result of a future agreement with Canada on the use of 220-222 MHz spectrum in the border area.
Potential bidders were also made aware that certain applications (including those for modification), waiver requests, petitions for reconsideration and applications for review were pending before the Commission that relate to particular incumbent non-nationwide 220 MHz licensees. We noted that resolution of these matters could have an impact on the availability of spectrum for EA and EAG licensees. In addition, while the Commission will continue to act on pending applications, requests and petitions, some of these matters may not be resolved by the time of the auction.
The potential bidders are solely responsible for investigating and evaluating the degree to which such pending matters may affect spectrum availability in areas where they seek EA or EAG licenses.
To aid potential bidders, we included a list of cases pending involving Non-Nationwide Phase I 220 MHz licenses which identified pending matters of which the Commission was aware that relate to licenses or applications for the 220 MHz service. The Commission makes no representations or guarantees that the listed matters are the only pending matters that could affect spectrum availability in the 220-222 MHz band.
Additional information regarding matters identified in this list of Cases is available to the public. Licensing information is contained in the Commission's licensing database, which is available for inspection in the Wireless Telecommunications Bureau's Public Reference Rooms, located at 2025 M Street, N.W., Room 5608, Washington, D.C. 20554, and 1270 Fairfield Road, Gettysburg, PA 17325. In addition, copies of the pleadings are available for public inspection only in the Gettysburg Public Reference Room.
In addition, potential bidders may search for information (but not the pleadings) regarding incumbent 220 MHz licensees. In particular, information can be accessed by downloading WTB Database Files, or searching on-line by searching WTB Databases. Any telephone inquires regarding these matters should be directed to the Technical Support Hotline at (202) 414-1250 (V) or (202) 414-1255 (TTY).
The Commission makes no representations or guarantees regarding the accuracy or completeness of information that has been provided by incumbent licensees and incorporated into the database.

Construction Requirements

The construction build out requirements are defined at 47 CFR 90.767 for EA/Regional licensees, and 47 CFR 90.769 for nationwide licensees. You can also find these definitions on pages 413-414 of the published copy of the Phase II 220 MHz Bidder Information Package. (Note: The page numbers of the electronic copy will vary.).
A total of 908 licenses were offered in this auction. Three (100 kHz) nationwide licenses, five (100 kHz) licenses in each of the 175 Economic Areas ("EAs"), and five (150 kHz) licenses in each of the 6 Economic Area Groupings ("EAGs").
"Substantial Service" is defined at 90.743 (page 409) and is discussed in the MO&O at ¶¶ 107-110 (page 194-196) of the published copy of the Phase II 220 MHz Bidder Information Package. (Note: The page numbers of the electronic copy will vary.)
 

Permissible Operations

Frequencies in the 220 - 222 MHz band are available for land mobile and fixed use for both Government and non-Government operations. Licensees authorized in the Phase II 220 MHz Service are able to provide voice, data, paging and fixed communications. Permissible operations include: Rules governing these bands are found in Title 47 of the Code of Federal Regulations Part 90, Subpart T.

License Period

Licenses are issued for a ten-year term from the initial license grant date. At the end of the 10-year period, licenses are required to submit an acceptable showing to the commission demonstrating that they are providing "substantial service" to their service area.

Bidding Credits

A bidding credit acts as a discount on the winning bid amount that a bidder actually has to pay for the license. The size of the bidding credit depends on the annual gross revenues of the bidder, together with its affiliates and controlling interests, as averaged over the preceding three years as defined in 47 C.F.R. § Section 90.1021(b): These bidding credits are not cumulative.

Licensing Rules

See service rules 47 C.F.R. Part 90 subpart T.

Incumbents

There are a number of incumbent Phase I 220 MHz licensees already licensed and operating on frequencies that will be subject to the upcoming auction. Such incumbents must be protected from harmful interference by Phase II 220 MHz licensees in accordance with the Commission's Rules. These limitations may restrict the ability of such geographic area licensees to use certain portions of the electromagnetic spectrum or provide service to certain areas in their geographic license areas.

Construction Requirements

The construction build out requirements are defined at 47 CFR 90.767 for EA/Regional licensees, and 47 CFR 90.769 for nationwide licensees. You can also find these definitions on pages 413-414 of the published copy of the Phase II 220 MHz Bidder Information Package. (Note: The page numbers of the electronic copy will vary.)
Licensees may also meet their construction requirements by demonstrating the provision of appropriate levels of substantial service to the public and the prescribed 5-year and 10-year construction benchmarks.
"Substantial Service" is defined at 90.743 (page 409) and is discussed in the MO&O at ¶¶ 107-110 (page 194-196) of the published copy of the Phase II 220 MHz Bidder Information Package. (Note: The page numbers of the electronic copy will vary.)