Auction 65: 800 MHz Air-Ground Radiotelephone Service

Event	Date
Pre-Auction Seminar	3/14/2006
Form 175 (Short Form) Application Filing Window Opens	3/14/2006; 12:00 noon ET
Form 175 (Short Form) Application Filing Deadline	3/24/2006; 6:00 pm ET
Upfront Payments Deadline	4/17/2006; 6:00 pm ET
Mock Auction	5/8/2006
Auction Start	5/10/2006
Auction Closed	6/2/2006

Licenses Offered

Auction No. 65 offered new nationwide commercial Air-Ground Radiotelephone Service licenses in the 800 MHz band in three alternative band configurations: (1) Band Plan 1, comprised of two overlapping, shared, cross-polarized 3 MHz licenses (Licenses A and B, respectively), (2) Band Plan 2, comprised of an exclusive 3 MHz license and an exclusive 1 MHz license (Licenses C and D, respectively), and (3) Band Plan 3, comprised of an exclusive 1 MHz license and an exclusive 3 MHz license (Licenses E and F, respectively), with the blocks at opposite ends of the band from Band Plan 2. Licenses in only one of these mutually incompatible band configurations will be awarded. For more information, see Procedures Public Notice DA 06-299 , released February 21, 2006.
A complete list of licenses available in Auction No. 65 and their descriptions is provided in Attachment A of Public Notice DA 06-299 .

Spectrum (Paired)

Permissible Operations

A new licensee may provide any type of air-ground service (i.e., voice telephony, broadband Internet, data, etc.) to aircraft of any type, and serve any or all aviation markets (commercial, government, and general). A licensee must provide service to aircraft. A new licensee may not provide ancillary land mobile or fixed services in the 800 MHz air-ground spectrum.

Eligibility Restriction

In order to promote competition in the 800 MHz air-ground band, the Commission has prohibited any party from obtaining a controlling interest, either at auction or by a post-auction transaction, in new licenses for more than three megahertz of spectrum (either shared or exclusive) in the band. No single party, therefore, may win in auction more than one license in any of the available band configurations.

License Period and Construction Requirements

800 MHz Air-Ground Radiotelephone licenses are issued for a ten-year term beginning on the date of the initial authorization grant.
Each 800 MHz Air-Ground Radiotelephone licensee must provide “substantial service” to aircraft within five years of the initial authorization grant in order to satisfy the construction requirement and must file a notice of compliance within 15 days of the expiration of this period. (See 47 C.F.R. § 1.946 )
The Commission did not establish a construction requirement for either of the 1 MHz spectrum licenses (D and E) in Auction No. 65. If either license is acquired, the licensee would have to share spectrum with Verizon Airfone’s incumbent system until the expiration of Verizon Airfone’s non-renewable license term (May 2010).

Bidding Credits

Bidding credits were available to small businesses and very small businesses and consortia thereof (as defined in 47 C.F.R. §§ 1.2110(c)(6)). A bidding credit represents the amount by which a bidder’s winning bid is discounted. 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 that exceed $15 million and do not exceed $40 million for the preceding three years (“small business”) received a 15 percent discount on its winning bid.
A bidder with attributed average annual gross revenues that do not exceed $15 million for the preceding three years (“very small business”) received a 25 percent discount on its winning bid.

Bidding credits are not cumulative; a qualifying applicant receives the 15 percent or 25 percent bidding credit on its winning bid, but not both.

Spectrum Sharing Plan

If Band Plan 1, which is comprised of two overlapping 3 MHz licenses, is implemented, the new licensees will be required to jointly file a spectrum sharing and site selection plan with the Bureau within six months of the initial grant of their spectrum licenses, and they will be required to notify the Bureau of any changes to the plan. The Bureau will issue a public notice prior to the commencement of Auction No. 65 in which it will specify the filing requirements for such a plan. This approach will provide parties with overlapping spectrum licenses flexibility to configure their systems without having to adhere to minimum spacing requirements or site locations predetermined by the Commission.

International Coordination

To promote interoperable communications and to manage interference, some of the ground station locations in North America and channel block assignments of the 800 MHz air-ground band have been predetermined consistent with bilateral agreements with Mexico and with Canada. These agreements, which provide for coordinated use of the 800 MHz air-ground frequencies over North American airspace, are based on a narrow bandwidth channel scheme, and therefore may need to be renegotiated to provide for more flexible use of this spectrum based on the band plan configuration that is implemented as a result of the auction.

Incumbent Licensee

In the Air-Ground Order, the Commission granted Verizon Airfone -- the only incumbent service provider in the 800 MHz air-ground band — a nonrenewable license to operate in the band for five years. This license will expire in May 2010. Verizon Airfone must transition its incumbent narrowband operations from four to one megahertz of spectrum in the band within two years of the initial grant date of a new license in the band. The Commission has directed the Bureau to adopt reporting requirements so that Airfone’s transition of its base stations and its subscribers’ aircraft to operations in one megahertz of the 800 MHz air-ground band may be monitored. Accordingly, the Bureau issued a public notice enumerating such requirements on February 6, 2006. Airfone must file its initial transition status report with the Commission six months from the date of the grant of any new license in the band and at each of the three six-month intervals thereafter. For more details, see Public Notice DA 06-294 released February 6, 2006.

Licensing Rules

47 C.F.R. Part 22, Subpart G

Releases P

6/7/2006
PUBLIC NOTICE (DA 06-1197)
Auction of 800 MHz Air-Ground Radiotelephone Service Licenses Closes, Winning Bidders Announced for Auction No. 65
The WTB announces the close of and winning bidders for Auction No. 65.

5/10/2006
PUBLIC NOTICE (DA 06-1002)
Auction of 800 MHz- Air-Ground Radiotelephone Service Licenses Scheduled for May 10, 2006; Dismissal of Application of Aircell, Inc.
The short-form application in Auction No. 65 filed by AirCell, Inc. on March 24, 2006, is dismissed.

5/4/2006
PUBLIC NOTICE (DA 06-984)
Auction of 800 MHz Air-Ground Radiotelephone Service Licenses Scheduled for May 10, 2006; Clarification of Treatment of Bids by Bidders Sharing a Controlling Interest
This public notice clarifies the treatment of bids by bidders in Auction No. 65 sharing a controlling interest.

5/1/2006
PUBLIC NOTICE (DA 06-959)
WTB Specifies Requirements for Air-Ground Radiotelephone Service Spectrum Sharing and Site Selection Plan

4/28/2006
PUBLIC NOTICE (DA 06-907)
Auction of 800 MHz Air-Ground Radiotelephone Service Licenses; 9 Bidders Qualified to Participate in Auction No. 65
The WTB identifies 9 applicants found to be qualified to participate in the Air-Ground Radiotelephone Service Licenses Auction No. 65 scheduled to begin on Wednesday, May 10, 2006.

3/31/2006
PUBLIC NOTICE (DA 06-701)
Auction of 800 MHz Air-Ground Radiotelephone Service Licenses; Status of FCC Form 175 Applications to Participate in Auction No. 65
The WTB announced the result of its review of 12 short-form applications (FCC Forms 175) filed to participate in the upcoming auction No. 65 scheduled to begin on May 10, 2006.

3/20/2006
PUBLIC NOTICE (DA 06-588)
Auction of 800 MHz Air-Ground Radiotelephone Service Licenses Scheduled for May 10, 2006; Additional Default Payment of 20 Percent will Apply to Auction No. 65
The WTB announces the additional payment component of default payments for the upcoming Air-Ground Radiotelephone Service Auction No. 65 scheduled for May 10, 2006. (Auction No. 65).

2/21/2006
PUBLIC NOTICE (DA 06-299)
Auction of 800 MHz Air-Ground Radiotelephone Service Licenses Scheduled for May 10, 2006; Notice and Filing Requirements, Minimum Opening Bids, Upfront Payments and Other Procedures for Auction No. 65
The WTB announces the procedures and minimum opening bids amounts for the upcoming auction of new nationwide commercial Air-Ground Radiotelephone Service license (Auction No. 65).

2/21/2006
PUBLIC NOTICE (DA 06-376)
Auction of 800 MHz Air-Ground Radiotelephone Service Licenses Scheduled for May 10, 2006; Comment Sought on Additional Payment Component of Default Payments for Auction No. 65
Telecommunications Bureau announced the auction of new nationwide commercial Air-Ground Radiotelephone Service licenses in the 800 MHz band and sought comment on procedures for the auction of these licenses (Auction No. 65).

1/10/2006
PUBLIC NOTICE (DA 06-3)
Auction of 800 MHz Air-Ground Radiotelephone Service Licenses Scheduled for May 10, 2006; Comment Sought on Reserve Prices or Minimum Opening Bids and Other Procedures for Auction No. 65

Releases L

5/2/2006
LETTER (DA 06-952)
To: AirCell, Inc.; Re: Application to Participate in Auction No. 65/Report of Communication Covered by Section 1.2105(c)
The WTB responds to a report from AirCell, Inc. concerning a communication from another applicant in Auction No. 65. Action by: Deputy Chief, Auctions and Spectrum Access Division, WTB by LETTER. (DA 06-952).

Releases O

6/21/2012
MEMORANDUM OPINION AND ORDER (FCC 12-66)
Intelligent Transportation and Monitoring Wireless LLC and AMTS Consortium, LLC
Denied the application for review filed jointly by two Auction 65 applicants controlled by Warren Havens.

3/9/2007
MEMORANDUM OPINION AND ORDER (DA 07-1197)
In the Matter of Intelligent Transportation & Monitoring Wireless LLC and AMTS Consortium, LLC Petition for Declaratory Ruling and Motion for Stay of Auction No. 65
This MO&O addresses two petitions for reconsideration filed by Intelligent Transportation & Monitoring Wireless LLC and AMTS Consortium, LLC involving the auction and licensing of 800 MHz Air-Ground Radiotelephone Service licenses (Auction No. 65).

5/9/2006
ORDER (DA 06-1001)
Intelligent Transportation & Monitoring Wireless LLC and AMTS Consortium, LLC, Petition for Declaratory Ruling and Motion for Stay of Auction
No. 65
Denies a request filed by Intelligent Transportation & Monitoring Wireless LLC and AMTS Consortium, LLC for declaratory ruling and dismisses the motion for stay as moot.

12/9/2005
ORDER ON RECONSIDERATION AND REPORT AND ORDER (FCC 05-202)
Amendment of Part 22 of the FCC's Rules to Benefit the Consumers of Air-Ground Telecommunications Services
The FCC released an Order on Reconsideration and Report and Order that establishes competitive bidding rules for the 400 MHz and 800 MHz Air-Ground Radiotelephone services and resolves Petitions for Reconsideration. By Report and Order.

4/1/2005
Erratum (FCC 04-287)
Erratum - Amendment of Part 22 of the Commission's Rules to Benefit the Consumers of Air-Ground Telecommunications Services/Biennial Regulatory Review - Amendment of Parts 1, 22, and 90 of the Commission's Rules/Amendments of Parts 1, and 22 of the FCC's Rules
Revised rules governing the four megahertz of dedicated spectrum in the 800 MHz commercial Air-Ground Radiotelephone Service Band. Also, proposed auction rules and streamlined other rules. By NPRM. (Dkt No. 03-103, 05-42). Action by: the Commission. Adopted: 12/15/2004 by R&O.

3/3/2005
Erratum (FCC 04-287)
Erratum - Amendment Of Part 22 of the Commission's Rules To Benefit The Consumers Of Air-Ground Telecommunications Services/Biennial Regulatory Review - Amendment of Parts 1, 22, And 90 Of The Commission's Rules/Amendments Of Parts 1, And 22 Of The FCC's Rules
Erratum - Revised rules governing the four megahertz of dedicated spectrum in the 800 MHz commercial Air-Ground Radiotelephone Service Band. Also, proposed auction rules and streamlined other rules. By NPRM. (Dkt No. 03-103, 05-42). Action by: the Commission. Adopted: 12/15/2004 by R&O.

2/22/2005
Notice of Proposed Rule Making (FCC 04-287)
Amendment Of Part 22 of the Commission's Rules To Benefit The Consumers Of Air-Ground Telecommunications Services/Biennial Regulatory Review - Amendment of Parts 1, 22, And 90 Of The Commission's Rules/Amendments Of Parts 1, And 22 Of The FCC's Rules
Revised rules governing the four megahertz of dedicated spectrum in the 800 MHz commercial Air-Ground Radiotelephone Service Band. Also, proposed auction rules and streamlined other rules. By NPRM. (Dkt No. 03-103, 05-42). Action by: the Commission. Adopted: 12/15/2004 by R&O.

No results here for this auction.

Auction Seminar

This seminar was held on March 14, 2006. You may view the presentations below.

Presentations

Welcome and Opening Remarks
Kathryn Garland, Deputy Division Chief, Auctions & Spectrum Access Division (ASAD)
pdf - PowerPoint

Pre-Auction Process
Barbara Sibert, Auctions Marketing Specialist, ASAD
pdf - PowerPoint

Overview of 800 MHz Air-Ground Radiotelephone Service Rules and Due Diligence
Richard Arsenault, Chief Counsel, Mobility Division
Moslem Sawez, Technical Advisor, Mobility Division
pdf - PowerPoint

Legal, Technical, Auction Rules & Payment Procedures

Electronic Filing of Form 175 and Overview of Auction Rules

Lisa Stover, Auctions Marketing Specialist, ASAD

Howard Davenport, Attorney Advisor, ASAD

pdf - PowerPoint

Wire Transfer & Payment Process

Gail Glasser, Financial Management Specialist, Auctions Accounting Group

pdf - PowerPoint

Auction Bidding Procedures

Overview of Auction Process & FCC Auction System

Jeff Crooks, Auctions Analyst, ASAD

pdf - PowerPoint

Post Auction Process

Payment & Filing Requirements

Lisa Stover, Auctions Marketing Specialist, ASAD

Michael Connelly, Attorney Advisor, Mobility Division

pdf - PowerPoint

Auction 65: 800 MHz Air-Ground Radiotelephone Service

Summary

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Auction Seminar

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