DA 98-1074 June 12, 1998 Mr. Tyrone Brown Senior Vice President, ClearComm, L.P. 1750 K Street, N.W. Washington, D.C. 20006 Re: Reduction of Bid Withdrawal Payments for License B324 Dear Mr. Brown: This letter responds to the May 19, 1998 request of ClearComm, L.P. for further reduction of an outstanding bid withdrawal payment assessed during the broadband Personal Communications Services (PCS) C block auction. ClearComm (then doing business as PCS 2000) submitted an erroneous bid for the Norfolk, Virginia license B324 during round 11 of the auction, but notified the Commission of the mistaken bid prior to round 12. ClearComm withdrew the bid in the next round. In accordance with the Commission's May 3, 1996 Order in Atlanta Trunking, the Bureau granted a partial waiver of Section 24.704(a)(1) of the Commission's Rules to ClearComm, resulting in a reduction of the required bid withdrawal payment to two times the minimum bid increment, or $3,273,374.00. The Bureau noted in its December 20, 1996 Order assessing the payment against ClearComm that no intentional conduct led to the erroneous bid and that ClearComm acted expeditiously to correct its error. In an application for review pending at the Commission, ClearComm has requested a complete waiver of the bid withdrawal payment assessed by the Bureau. ClearComm has indicated that it is willing to request dismissal of its Application for Review contingent upon reduction of its bid withdrawal payment to $425,000.00. At the time ClearComm submitted its erroneous bid, the Commission's bid withdrawal payment provisions did not contemplate erroneous, unintentional bids. In the Atlanta Trunking Orders, the basis for the Bureau's initial reduction of ClearComm's bid withdrawal payment, the Commission delegated authority to the Bureau to grant waivers of bid withdrawal payments on a case-by-case basis. Waivers are permissible in instances where there is no evidence of insincere or frivolous bidding or other acts of bad faith related to the actual bid. Due to the changed circumstances related to the auctions process, the Bureau has decided to revisit ClearComm's case at this juncture. Our decision to do so conforms to both the spirit and intent of the waiver policy set forth in the Atlanta Trunking Orders. The totality of the circumstances here present compelling reasons for reducing the bid withdrawal payment assessed against ClearComm. The factors essential to a bid withdrawal reduction cited in the Atlanta Trunking Orders are all present in ClearComm's case. ClearComm's conduct was unintentionally erroneous, it withdrew immediately upon discovery of its error, the error occurred during an early phase of the auction, and the auction process corrected itself to prevent harm caused by the erroneous bid. The Bureau also determined that this withdrawal did not result in an alteration of the ultimate winning bid amount. Finally, the imposition of the currently assessed bid withdrawal payment would cause extreme and unnecessary financial hardship to ClearComm. In addition, since the Atlanta Trunking Orders, the Commission has implemented "click box bidding" in an effort to improve the auction process and eliminate erroneous bids. Also, the electronic bidding format has been modified to limit withdrawals. As a result, the possibility of future erroneous bids has been substantially reduced and the Commission has declared that prior policy directed at combatting speculative and strategic bidding is moot. Because "click box bidding" has substantially reduced the possibility of erroneous bids, the large bid withdrawal payment assessed is no longer necessary to serve the Commission's stated purpose of discouraging insincere bidding. We find that the amount proposed by ClearComm for its erroneous bid is sufficient to deter future insincere bids. Accordingly, we hereby grant ClearComm's request for reduction of the bid withdrawal payment to $425,000.00. This action will take effect upon the Bureau's dismissal with prejudice of ClearComm's January 21, 1997 Application for Review. This action is taken pursuant to delegated authority under Section 0.331 of the Commission's Rules. 47 C.F.R.  0.331. FEDERAL COMMUNICATIONS COMMISSION Daniel B. Phythyon Chief, Wireless Telecommunications Bureau