Fact Sheet

Date:

Auction 78 began on 8/13/2008 and closed on 8/20/2008.

(See Auction 78 Procedures Public Notice DA 08-1090)
Licenses:

35 AWS-1 Licenses:
Block A: 22 Cellular Market Area (CMA) licenses
Block B: 4 Economic Area (EA) licenses
Block C: 3 EA licenses
Block D: 2 Regional Economic Area Grouping (REAG) licenses
Block E: 1 REAG license
Block F: 3 REAG licenses 20 Broadband PCS Licenses:
Block C1: 5 Basic Trading Area (BTA) licenses
Block C3: 2 BTA licenses
Block C4: 3 BTA licenses
Block C5: 2 BTA licenses
Block D: 1 BTA license
Block E: 4 BTA licenses (including 2 partial BTAs)
Block F: 3 BTA licenses 55 licenses total

Bandwidth:

AWS-1 Licenses:
Block A: 1710-1720 / 2110-2120 MHz (20 MHz)
Block B: 1720-1730 / 2120-2130 MHz (20 MHz)
Block C: 1730-1735 / 2130-2135 MHz (10 MHz)
Block D: 1735-1740 / 2135-2140 MHz (10 MHz)
Block E: 1740-1745 / 2140-2145 MHz (10 MHz)
Block F: 1745-1755 / 2145-2155 MHz (20 MHz)

Broadband PCS Licenses:
Block C1: 1902.5-1910 / 1982.5-1990 MHz (15 MHz)
Block C3: 1895-1900 / 1975-1980 MHz (10 MHz)
Block C4: 1900-1905 / 1980-1985 MHz (10 MHz)
Block C5: 1905-1910 / 1985-1990 MHz (10 MHz)
Block D: 1865-1870 / 1945-1950 MHz (10 MHz)
Block E: 1885-1890 / 1965-1970 MHz (10 MHz or less)
Block F: 1890-1895 / 1970-1975 MHz (10 MHz)

Winning Bidders:
16 Bidders won 53 Licenses
Rounds:
38
Qualified Bidders
23
Licenses Won:
53
Licenses Held by FCC:
2
Total Licenses:
55
Net Bids
$21,276,850
Gross Bids:
$23,565,000

Event Date
Pre-Auction Seminar
Form 175 (Short Form) Application Filing Window Opens
6/10/2008; 12:00 noon ET
Form 175 (Short Form) Application Filing Deadline
6/19/2008; prior to 6:00 pm ET
Upfront Payments Deadline
7/17/2008; 6:00 pm ET
Mock Auction
8/11/2008
Auction Start
8/13/2008
Auction Closed
8/20/2008
 
AWS-1 Licenses: A total of 35 licenses will be offered in the Advanced Wireless Services 1710-1755 MHz and 2110-2155 MHz bands (AWS-1). These licenses consist of six Regional Economic Area Grouping (REAG) licenses, seven Economic Area (EA) licenses, and 22 Cellular Market Area (CMA) licenses, as shown in the table below. These are licenses for which there were no winning bids in Auction 66.
 
Block Frequencies (MHz) Bandwidth Geographic Area Type No. of Licenses
A 1710-1720 / 2110-2120 20 MHz CMA 22
B 1720-1730 / 2120-2130 20 MHz EA 4
C 1730-1735 / 2130-2135 10 MHz EA 3
D 1735-1740 / 2135-2140 10 MHz REAG 2
E 1740-1745 / 2140-2145 10 MHz REAG 1
F 1745-1755 / 2145-2155 20 MHz REAG 3

Broadband PCS Licenses: A total of 20 broadband PCS licenses will be offered in the C, D, E and F frequency blocks in full or partial BTA markets. Because of the history of licenses for broadband PCS spectrum, some licenses available in Auction 78 cover less bandwidth and fewer frequencies than noted in the table below. In some cases, licenses are available for only part of a market. Attachments A and B of the Auction 78 Procedures Public Notice (DA 08-1090), released May 16, 2008, provide more details about the broadband PCS licenses that will be offered in this auction. In addition, certain C block licenses are subject to an eligibility restriction making them available only to “entrepreneurs” in “closed” bidding. See section on “Eligibility for Closed Bidding” below.
 
Block Eligibility Status Frequency Bands (MHz) Bandwidth Geographic Area Type No. of Licenses
C1 Open 1902.5-1910 / 1982.5-1990 15 MHz BTA 1
C1 Closed 1902.5-1910 / 1982.5-1990 15 MHz BTA 4
C3 Closed 1895-1900 / 1975-1980 10 MHz BTA 2
C4 Closed 1900-1905 / 1980-1985 10 MHz BTA 3
C5 Open 1905-1910 / 1985-1990 10 MHz BTA 2
D n/a 1865-1870 / 1945-1950 10 MHz BTA 1
E n/a 1885-1890 / 1965-1970 10 MHz (or less) BTA 4
F Open 1890-1895 / 1970-1975 10 MHz BTA 3

Five of the broadband PCS licenses available in Auction 78 are for spectrum that became available when previous licenses for that spectrum automatically terminated for failure to meet the construction requirements. These licenses – which includes the four C1 block licenses that are available in closed bidding and the E block license within BTA460 – cannot be acquired by the former licensee. See 47 C.F.R. § 24.203.
 
Broadband PCS Licenses: Broadband PCS licensees may provide any mobile communications service on their assigned spectrum, consistent with technical requirements set forth in the Commission’s rules. For example, broadband PCS spectrum may be used for a variety of mobile and/or portable radio services, using such devices as small, lightweight, multifunction portable phones, portable fax machines, and advanced devices with two-way data capabilities. Fixed services may be provided on a co-primary basis with mobile operations. Broadcasting as defined in the Communications Act is prohibited. See 47 C.F.R. § 24.3.
 
AWS licensees must make a showing of “substantial service” in their license areas within the prescribed license term. See 47 C.F.R. § 27.14(a). “Substantial” service is defined as service that is sound, favorable, and substantially above a level of mediocre service which just might minimally warrant renewal. Any licensee that fails to meet this requirement will forfeit its license and the licensee will be ineligible to regain it.
Broadband PCS Licenses: Licenses will be issued for a ten-year term from the initial license grant date. See 47 C.F.R. § 24.15. 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. § 24.16.
Broadband PCS licensees must serve at least one-quarter of the population in their licensed area or make a showing of “substantial service” in their licensed area within five years of the original license date. These construction requirements refer to licenses consisting of 10 MHz and 15 MHz blocks. See 47 C.F.R. § 24.203.
   
See 47 C.F.R. § 1.2110(f)(2). Bidding credits are not cumulative. Qualifying applicants receive either the 15 percent or the 25 percent bidding credit on their winning bids, but not both.
As noted above, bidding credits for applicants that qualify as small or very small businesses will be available for all AWS-1 licenses, the broadband PCS C block licenses that are available in open bidding, and all broadband PCS F block licenses. Bidding credits are not available for broadband C block licenses subject to closed bidding or for broadband PCS D and E block licenses. See 47 C.F.R. §§ 24.712, 24.717.
   
Broadband PCS Licenses: While most of the private and common carrier fixed microwave services (“FMS”) formerly operating in the 1850-1990 MHz band (and other bands) have been relocated to available frequencies in higher bands or to other media, some FMS licensees may still be operating in the band. Any remaining FMS entities operating in the 1850-1990 MHz band, however, are secondary to PCS operations. FMS licensees, absent an agreement with the applicable PCS entities or an extension pursuant to 47 C.F.R. § 101.79(b), must turn in their authorizations six months following written notice from a PCS entity that such entity intends to turn on a system within the interference range of the incumbent FMS licensee. Further, broadband PCS licensees are no longer responsible for costs associated with relocating an incumbent FMS operation.
 
AWS-1 Licenses: 47 C.F.R. Parts 1, 27, and 101
Broadband PCS Licenses: 47 C.F.R. Parts 1 and 24