Auction 56: 24 GHz Service

Event	Date
Pre-Auction Seminar	5/25/2004
Form 175 (Short Form) Application Filing Window Opens	5/25/2004; 12:00 noon ET
Form 175 (Short Form) Application Filing Deadline	6/4/2004; 6:00 pm ET
Upfront Payments Deadline	6/29/2004; 6:00 pm ET
Mock Auction	7/23/2004
Auction Start	7/28/2004
Auction Closed	7/28/2004

Licenses Offered

Auction No. 56 included 880 licenses in the 24.25-24.45 GHz and 25.05-25.25 GHz bands (five licenses in each of 172 Economic Areas ("EAs") and four EA-like areas: Guam and Northern Mariana Islands; Puerto Rico and the U.S. Virgin Islands; American Samoa; and the Gulf of Mexico). Each license consisted of one 80 megahertz block of paired spectrum. A complete list of licenses for Auction No. 56 and their descriptions is provided in Attachment A of Public Notice DA 04-633.

Channel Number	Channel Description	Frequencies	Bandwidth
EA Licenses
35	Two paired 40 MHz frequency blocks	24,250-24,290 / 25,050-25,090 MHz	80 MHz
36	Two paired 40 MHz frequency blocks	24,290-24,330 / 25,090-25,130 MHz	80 MHz
37	Two paired 40 MHz frequency blocks	24,330-24,370 / 25,130-25,170 MHz	80 MHz
38	Two paired 40 MHz frequency blocks	24,370-24,410 / 25,170-25,210 MHz	80 MHz
39	Two paired 40 MHz frequency blocks	24,410-24,450 / 25,210-25,250 MHz	80 MHz
Total			400 MHz

Permissible Operations

The 24 GHz Radio Service can be used for any kind of digital fixed communications service consistent with the Commission’s rules. Services can be provided on a common carrier or non-common carrier basis.

License Period

24 GHz licenses are issued for a ten-year term from the date of license grant. Licensees have a renewal expectancy based on the provision of substantial service and substantial compliance with applicable Commission rules, policies, and the Communications Act. (See 47 C.F.R. § 101.529 ). Licensees must demonstrate that they are providing substantial service when they file their renewal application.

In order to establish its right to a renewal, a licensee in the 24 GHz service involved in a renewal proceeding must submit a showing explaining why it should receive a renewal. Licensees must provide a description of how the licensee has complied with the "substantial service" requirement, and provide supporting documents showing compliance with the respective construction requirements as defined in 47 C.F.R. § 101.529(b).

Bidding Credits

Bidding credits were available to small businesses or consortia thereof, as defined in 47 C.F.R. § 101.538 . A bidding credit is a payment discount on a winning bid determined at the conclusion of the bidding process. The size of the bidding credit depends on the average annual gross revenues for the preceding three years of the bidder, its affiliates, its controlling interests, and the affiliates of its controlling interests:

A bidder with attributed average annual gross revenues of not more than $40 million for the preceding three years receives a 15 percent discount on its winning bid(s) for the 24 GHz license(s)
A bidder with attributed average annual gross revenues of not more than $15 million for the preceding three years receives a 25 percent discount on its winning bid(s) for the 24 GHz license(s)
A bidder with attributed average annual gross revenues of not more than $3 million for the preceding three years receives a 35 percent discount on its winning bid(s) for the 24 GHz license(s)

Small business bidding credits are not cumulative. A qualifying applicant receives the 15 percent, the 25 percent or the 35 percent bidding credit on its winning bid(s), but only one credit per license.

Tribal Land Credits

A winning bidder that intends to use its license(s) to deploy facilities and provide services to federally-recognized tribal lands that are unserved by any telecommunications carrier or that have a telephone service penetration rate equal to or below 70 percent is eligible to receive a tribal land bidding credit as set forth in 47 C.F.R. §§ 1.2107(e) and 1.2110(f). A tribal land bidding credit is in addition to, and separate from, any other bidding credit for which a winning bidder may qualify. A winning bidder need not qualify for a small business bidding credit to be eligible for a tribal lands bidding credit.

Unlike other bidding credits that are requested prior to the auction, a winning bidder applies for the tribal land bidding credit after winning the auction when it files its long-form application (FCC Form 601). In order for a winning bidder to be awarded a tribal land bidding credit, it must provide specific certifications regarding the servicing of tribal lands and is subject to specific performance criteria as set forth in 47 C.F.R. § 1.2110(f).

Additional information on the tribal land bidding credit, including how the amount of the credit is calculated, can be found on the Commission's web site by going to Tribal Land Credits.

Incumbents

Incumbent 24 GHz Service licensees (formerly Digital Electronic Message Service (DEMS) licensees when they were in the 18 GHz band) authorized to operate in Standard Metropolitan Statistical Areas ("SMSAs") shall retain exclusive rights to their channel(s) within their SMSA and must be protected. See 47 C.F.R. § 101.509(c). 24 GHz service licensees must also protect neighboring licensees. New EA licensees are encouraged to develop sharing agreements with these incumbents and other new EA licensees along the boundaries of their areas. Potential bidders seeking licenses for EAs that border Canada or Mexico are subject to coordination arrangements with those respective countries. See 47 C.F.R. § 101.509(d). We note that should an incumbent lose its authority to operate, the incumbent’s authorization will revert to the relevant EA licensee without being subject to competitive bidding.

Aggregation/Disaggregation/Partitioning

There is no limit to the amount of spectrum that a 24 GHz licensee may aggregate. See 47 C.F.R. § 101.535 . Partitioning and disaggregation are permitted. Licenses may be partitioned according to the procedures in 47 C.F.R. §101.535(a)(2). Spectrum may be disaggregated in any amount. A licensee need not retain a minimum amount of spectrum.
See 47 C.F.R. §101.535 .

Releases P

8/2/2004
PUBLIC NOTICE (DA 04-2429)
24 GHz Service Spectrum Auction Closes; Winning Bidders Announced
Down Payments Due August 16, 2004; FCC Forms 601 and 602 Due August 16, 2004; Final Payments Due August 30, 2004; (Ten-Day Petition to Deny Period).

7/14/2004
PUBLIC NOTICE (DA 04-2086)
24 GHz Service Spectrum Auction; 3 Qualified Bidders, Auction No. 56
This Public Notice identifies three applicants found to be qualified to bid in the upcoming 24 GHz Service auction.

6/18/2004
PUBLIC NOTICE (DA 04-1727)
24 GHz Service Spectrum Auction; Status of FCC Form 175 Applications to Participate in the Auction
This Public Notice announces the status of the five FCC Form 175 applications received to participate in Auction No. 56 scheduled to begin on July 28, 2004.

5/6/2004
PUBLIC NOTICE (DA 04-1271)
Auction of 24 GHz Service Licenses Scheduled for July 28, 2004 Reminder: Pre-Auction Seminar May 25, 2004
This Public Notice announces the Pre-Auction Seminar for the 24 GHz Service Auction (Auction No. 56) is scheduled for Tuesday, May 25, 2004.

3/12/2004
PUBLIC NOTICE (DA 04-633)
Auction of 24 GHz Service Licenses Scheduled for July 28, 2004; Notice and Filing Requirements, Minimum Opening Bids, Upfront Payments and Other Auction Procedures
This Public Notice announces the procedures and minimum opening bids for the upcoming auction of licenses in the 24 GHz service scheduled for July 28, 2004.

1/30/2004
PUBLIC NOTICE (DA 04-196)
Auction of 24 GHz Service Licenses Scheduled for July 28, 2004
Comment sought on reserve prices or minimum opening bids and other auction procedures.

12/10/1999
PUBLIC NOTICE
Comments Invited on Amendments to Parts 1, 2, and 101 of the Commission's Rules To License Fixed Services at 24 GHz
This Public Notice changes the comment and the reply comment dates to January 19, 2000 and February 7, 2000, respectively.
text - Word
See Notice of Proposed Rulemaking

Releases L

7/18/2002
LETTER (DA 02-1745)
Thomas J. Dougherty, Jr. Gardner, Carton & Douglas
This letter denied FlexCom's petition for reconsideration of the return of its premature short-form application which sought licenses in the 24 GHz Radio Service.

Releases O

2/27/2007
SECOND ORDER ON RECONSIDERATION (DA 07-871)
In the Matter of FlexCom Mobile, LLC
This Order denies the August 19, 2002 Petition for Further Reconsideration ("Further Recon Petition"), filed on behalf of FlexCom Mobile, LLC ("FlexCom").

5/28/2004
ERRATUM (DA 04-1588)
Amendments to Parts 1, 2, 87, and 101 of the Commission's Rules to License Fixed Services at 24 GHz
Issued Erratum corrects Report and Order, FCC 00-272 , released July 25, 2000.
pdf - Word
See R&O FCC 00-272

5/17/2001
ORDER ON RECONSIDERATION (FCC 01-151)
In the Matter of Amendment to Parts 1, 2, 87 and 101 of the Commission's Rules to License Fixed Services at 24 GHz.
This Order on Reconsideration addresses petitions for reconsideration and related pleadings regarding certain of our decisions.

8/1/2000
REPORT AND ORDER (FCC 00-272)
In the Matter of Amendments to Parts 1, 2, 87 and 101 of the Commission's Rules WT Docket No. 99-327 to License Fixed Services at 24 GHz
This Report and Order adopts service rules for licensing the 24.25-24.45 GHz and 25.05-25.25 GHz bands (24 GHz band ).
See Erratum

12/23/1999
ERRATUM TO NOTICE OF PROPOSED RULEMAKING
Amendments to Parts 1, 2, and 101 of the Commission's Rules to License Fixed Services at 24 GHz
This Erratum makes minor corrections to the text of the Notice of Proposed Rulemaking in the captioned proceeding, FCC 99-333, which was released on November 10, 1999.
text - Word
See FCC 99-333

11/10/1999
NOTICE OF PROPOSED RULEMAKING (FCC 99-333)
In the Matter of Amendment to Parts 1,2 and 101 of the Commission's Rules to License Fixed Services at 24 GHz, WT Docket No. 99-327
By this NPRM the Commissions proposes licensing and service rules to govern the 24 GHz band generally.

7/17/1998
MEMORANDUM OPINION AND ORDER (FCC 98-155)
Amendment of the Commission's Rules to ET Docket No. 97-99 Relocate the Digital Electronic Message Service From the 18 GHz Band to the 24 GHz Band and to Allocate the 24 GHz Band for Fixed Service
This Memorandum Opinion and Order addresses petitions for reconsideration of our decisions, including the decision to act without notice and comment procedures.

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Auction Seminar

This seminar was held on May 25, 2004.

Presentation Slides

5/25/2004
Pre-Auction Process
Barbara Sibert, Auctions Marketing Specialist, Auctions & Spectrum Access Division
pdf - ppt
Telephonic Bid Entry Script:
pdf

Overview of 24 GHz Service Rules and Due Diligence
Nancy Zaczek, Attorney, Broadband Division
pdf - ppt
Michael Pollak, Engineer, Broadband Division
pdf
Interim sharing arrangement between the FCC and Industry Canada:
pdf
Beth Fishel, Industry Analyst, Broadband Division
pdf - ppt

Overview of Tribal Land Bidding Credit
Michael Connelly, Attorney Advisor, Mobility Division
pdf - ppt

Overview of Auction Rules and Electronic Filing of Form 175
Howard Davenport, Attorney, Auctions & Spectrum Access Division
pdf - ppt
Yiping Osser, Project Manager
Form 175 Screen Shots:
pdf

Wire Transfer & Payment Process
Tim Dates, Accountant, Auctions Accounting Group
pdf - ppt

Overview of Auction Process & FCC Automated Auction System
Roy Knowles, Wireless Telecommunications Analyst, Auctions & Spectrum Access Division
pdf - ppt
Auctions Bidding System Screen Shots:
pdf - Word

Auction 56: 24 GHz Service

Summary

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Auction Seminar

Education