DA 96-1768
 
	Before the
	FEDERAL COMMUNICATIONS COMMISSION
	Washington D.C.  20554



In the Matter of 				
						)
						)  				
                                        		)
BDPCS, Inc., BTA Nos. B008, 		)
B036, B055, B089, B110, B133, 		)
B149, B261, B298, B331, B347, 		)
B358, B391, B395, B407, B413, 		)
and B447, Frequency Block C		)


					
	ORDER


	Adopted: October 25, 1996  			Released: October 28, 1996 


By The Chief, Wireless Telecommunications Bureau: 


	1.    By this action, we set forth the default payment obligations and procedures for BDPCS, Inc. ("BDPCS"), resulting from its failure to remit the required down payment on the licenses for which it was the successful high bidder in the Broadband Personal Communications Services ("PCS") C Block auction.  Pursuant to the Commission's rules, BDPCS is in default on its down payment obligations for seventeen BTA licenses, and is subject to a default payment totalling $60,695,653.23.  The specific default payment obligations for each license are set forth in Attachment A to this Order.

	2.    Background. On May 6, 1996, the Commission concluded the Broadband PCS C Block auction.  BDPCS was the successful high bidder on seventeen licenses in the auction, with net bids totalling $873,783,912.75.  On May 8, 1996, the Commission announced by Public Notice that, pursuant to Section 24.711(a)(2) of the Commission's rules, winning bidders would be required to submit their total down payment amount within five business days.  Consequently, under Section 24.711(a)(2), BDPCS was required to submit an initial down payment for the licenses in the amount of $36,689,196.64 by May 15, 1996, to bring its total amount on deposit with the Commission for these licenses, including its upfront payment of $7,000,000.00, to $43,689,195.64.      

	3.    On May 15, 1996, BDPCS filed an Emergency Petition for Waiver of Section 24.711(a)(2), requesting that the Commission extend the deadline for submission of the down payments on its licenses.  On May 20, 1996, the Wireless Telecommunications Bureau ("Bureau") denied BDPCS' request, finding that BDPCS had failed to meet the standards required to justify such a waiver.  On May 22, 1996, BDPCS filed a Petition for Reconsideration of the Order, arguing that the Bureau had failed to adequately consider the merits of its Emergency Petition.  On May 30, 1996, the Bureau issued an Order denying the Petition.  On June 28, 1996, BDPCS filed an Application for Review of the Bureau's Order and Order on Reconsideration with the Commission.  This Application for Review remains pending before the Commission.

	4.     On May 30, 1996, the Bureau released a Public Notice announcing that the seventeen licenses on which BDPCS had defaulted would be reauctioned commencing July 3, 1996.  On July 17, 1996, the Commission announced by Public Notice that the reauction of the licenses was complete.  The successful net high bids for these licenses are set forth in Attachment A to this Order.  
	
	5.    Discussion.  Under the Commission's rules, a bidder who fails to remit the required down payment for the licenses for which it was the high bidder within five business days after the Commission declares the auction closed shall be deemed to be in default on those licenses.  The Commission's rules also provide that under such circumstances, the Commission will dismiss the bidder's long-form application.  A defaulting bidder is subject to certain default payment obligations.  Specifically, such bidder is required to pay the difference between the amount bid and the amount of the winning bid the next time the license is offered by the Commission (so long as the subsequent winning bid is less than the amount bid), plus an additional payment equal to three percent of the defaulter's bid or the subsequent winning bid, whichever is less.  In the event that a license is reauctioned for an amount greater than or equal to the defaulted bid, the total default payment is equal to three percent of the defaulted bid.  In the event that the default payment cannot be determined (i.e., because a license has not yet been reauctioned), the Commission has indicated that a deposit may be assessed of up to 20 percent of the defaulted bid price.  Finally, the Commission's payment rules provide that if a defaulting bidder does not submit the default payment assessed by the Commission in the time required, any amounts overdue "will be deducted from any upfront payments or down payments that the defaulting or disqualified bidder has deposited with the Commission."  

	6.    BDPCS failed to remit the required initial down payment amount for the licenses for which it was the successful high bidder in the Broadband PCS C Block auction.  As such, it is in default, and is subject to the default payment provisions specified in Sections 24.704(a)(2) and 1.2104(g) of the Commission's rules.  Under this formula, which is set forth in Attachment A to this Order, BDPCS' total default payment due the Commission is $67,695,653.23.  This amount represents the total difference between BDPCS' winning bid on each license and the amount, if less than BDPCS' bid, for which that license was offered by the Commission in the C Block reauction ($42,765,088.50), plus an additional three percent of each of either BDPCS' bid or the winning bid in the C Block reauction, whichever is lower ($24,930,564.73).  Pursuant to Sections 24.704(a)(2) and 1.2104(g) of the Commission's rules, BDPCS' $7,000,000.00 upfront payment has been applied to the total default payment.  As a result, $60,695,653.23 remains due on BDPCS' default payment obligations.


ORDERING CLAUSES
	7.    It is ORDERED that BDPCS is assessed a default payment in the amount of $67,695,653.23, as computed in Attachment A.  It is FURTHER ORDERED that payment of $60,695,653.23 of this amount is to be made in accordance with the instructions set forth in Attachment B to this Order within thirty days from the release date of this Order.  

	8.    It is FURTHER ORDERED that this Order shall be sent to the applicant by certified mail, return receipt requested.  Action taken pursuant to delegated authority, 47 C.F.R.  0.331.


					FEDERAL COMMUNICATIONS COMMISSION





					Michele C. Farquhar
					Chief, Wireless Telecommunications Bureau 
ATTACHMENT B

The following information is being provided to assist you in making your payment. 

PAYMENT BY WIRE TRANSFER

  You must complete the FCC Remittance Advice (Form 159) when making your auction payment by wire transfer.  Please fax a completed Form 159 to Mellon Bank at (412) 236-5702 at least one hour before placing the order for the wire transfer.  On the cover sheet of the fax, indicate "Wire Transfer - Auction Payment for Auction Event 10.   Please indicate on the upper left hand corner of the Form 159 the lockbox number "358850."  The purpose of the FCC Form 159 is to identify who you are, how much you are paying and what you are paying for.  It allows the bank to accurately process your remittance.  Failure to accurately complete your FCC Form 159 could result in a delay in processing your remittance.  Before completing an FCC Form 159, read the instructions below.

1)  You must complete all of the blocks in the Payor Information Section, (Blocks 1 through 10).   

2)  You must complete the following auction-specific information in blocks, 14(A), 15(A), 16(a) and 17(A).  14(A) - Payment Type Code, enter the letters "AWCD"; block 15(A) - Quantity, enter "1"; block 16(A) enter the amount you are remitting; and block 17(A) - FCC Code 1, enter "10".

When wiring funds, please give your bank the following information: 

ABA Routing Number: 043000261; 
Receiving Bank: Mellon Pittsburgh; 
BNF: FCC/AC--9116106; 
OBI Field: (Skip one space between each information item) "AUCTIONPAY"; FCC ACCOUNT NO: _______________  (Exactly as on Form 159, Block #1); 
PAYOR NAME (BDPCS) 
PAYMENT TYPE CODE: AWCD (Block #14); 
FCC CODE 1:10


PAYMENT BY CASHIER'S CHECK

  Each cashier's check and corresponding FCC Remittance Advice (Form 159) must be in an individual envelope and specifically addressed to: Mellon Bank, P.O. Box #358850, Pittsburgh, PA 15251-5850, Attn: Auction Payment.
If delivering an auction payment in person or by courier, the check and FCC Remittance Advice (Form 159) must be delivered to Mellon Bank, Three Mellon Bank Center, 525 William Penn Way, 27th Floor, Room 153-2713, Pittsburgh, PA 15259-0001, (Attn: Wholesale Lockbox Shift Supervisor).


For further information or assistance, please call Regina Dorsey, Chief, Billings and Collections Branch at (202) 418-1995