PUBLIC NOTICE FEDERAL COMMUNICATIONS COMMISSION 1919 M STREET, N.W. WASHINGTON, D.C. 20554 News Media Information: (202) 418-0500 Fax-On-Demand: (202) 418-2830 Internet: http://www.fcc.gov ftp.fcc.gov DA 98-1010 May 29, 1998 AUCTION OF THE PHASE II 220 MHZ SERVICE LICENSES Auction Notice and Filing Requirements for 908 Licenses Consisting of Economic Area (EA), Economic Area Grouping (EAG), and Nationwide Licenses, Scheduled for September 15, 1998 Minimum Opening Bids and Other Procedural Issues Report No. AUC-98-18-B (Auction No. 18) 1. INTRODUCTION This Public Notice announces the procedures and minimum opening bids for the upcoming Phase II 220 MHz Service ("220 MHz Service") auction. On January 13, 1998, the Wireless Telecommunications Bureau ("Bureau") released a Public Notice, seeking comment on the establishment of reserve prices or minimum opening bids for the 220 MHz Service auction, in accordance with the Balanced Budget Act of 1997. In addition, the Bureau also sought comment on a number of procedures to be used in the 220 MHz Service auction. The Phase II 220 MHz Service Licenses to Be Auctioned: The Federal Communications Commission ("FCC" or "Commission") will hold an auction for 908 licenses to operate in the 220-222 MHz band. These licenses encompass the United States, the Northern Mariana Islands, Guam, American Samoa, the United States Virgin Islands and Puerto Rico. Specifically, the licenses include: (1) five licenses in each of 172 geographic areas known as Economic Areas (EAs) and three EA-like areas; (2) five licenses in six Economic Area Groupings (EAGs); and (3) three Nationwide licenses which encompass the same territory as all of the EAGs combined (see Attachment A for a complete listing of licenses). The licenses include the following channels: (1) EA Block Channels A: Channel Groups 2, 13 10 B: Channel Groups 3, 16 10 C: Channel Groups 5, 18 10 D: Channel Groups 8, 19 10 E: Channels 171-180 10 (2) EAG Block Channels F: Channel Groups 1, 6, 11 15 G: Channel Groups 4, 9, 14 15 H: Channel Groups 7, 12, 17 15 I: Channel Groups 10, 15, 20 15 J: Channels 186-200 15 (3) Nationwide Block Channels K: Channels 51-60 10 L: Channels 81-90 10 M: Channels 141-150 10 Auction Date: The auction will commence on September 15, 1998. The initial schedule for bidding will be announced by public notice at least one week before the start of the auction. Unless otherwise announced, bidding will be conducted on each business day until bidding has stopped on all licenses. Auction Title: The Phase II 220 MHz Service - Auction No. 18. Bidding Methodology: Simultaneous multiple round bidding. Bidding will be permitted only from remote locations, either electronically (by computer) or telephonically. Pre-Auction Deadlines:  Auction Seminar . . . . . . . . . . August 6, 1998  Short Form Application (FCC Form 175) . August 17, 1998; 5:30 p.m. ET  Upfront Payments (via wire transfer) . . . . August 31, 1998; 6:00 p.m. ET  Orders for Remote Bidding Software . . September 1, 1998; 5:30 p.m. . . . . . . . . ET  Mock Auction . . . . . . . . . . . . . . . . September 11, 1998 (time TBA) Telephone Contacts:  FCC National Call Center . . . . . . . . . . . . (888) CALL-FCC ((888) 225- 5322) (For Bidder Information . . . . . . . . . . Packages, General Auction . . . . . . . . . . Information, and Seminar . . . . . . Registration, press option #2 at . . . . the prompt). Hours of service: 8 a.m. - 5:30 p.m. ET.  FCC Technical Support Hotline . . (202) 414-1250 (V), (202) 414- 1255 (TTY). Hours of service: . . . . . . . . . . . . 8 a.m. - 6 p.m. ET, Monday - . . . . . . . . . . . . Friday; 9 a.m. - 5 p.m. ET, . . . . . . . . . . weekend of August 15-16. List of Attachments:  Attachment A Summary of Phase II 220 MHz Licenses to be Auctioned  Attachment B List of Cases Pending before the Commission Involving Non- Nationwide Phase I 220 MHz Licensees  Attachment C Guidelines for Completion of FCC Forms 175 and 159, and Exhibits  Attachment D Electronic Filing and Review of FCC Form 175  Attachment E Summary Listing of Documents from the Commission and the Wireless Telecommunications Bureau Addressing Application of the Anti-Collusion Rules  Attachment F List of Commenters Background: In March 1997, the Commission restructured the licensing framework that governs the 220 MHz Service. Site-specific licensing, used in the Phase I 220 MHz Service, is to be replaced with a geographic-based system in the Phase II 220 MHz Service which is the subject of the upcoming auction. This geographic-based licensing methodology is similar to that used in other commercial mobile radio services ("CMRS"). The geographic areas for the licenses were created based upon Economic Areas (EAs), developed by the Bureau of Economic Analysis of the U.S. Department of Commerce. The Economic Area Groupings (EAGs), developed by the Commission, include groupings of EAs and encompass the sum total of all EAs. Three Nationwide licenses, including all of the EAGs, are also to be offered in the Phase II 220 MHz Service auction. Service and operational requirements for the Phase II 220 MHz Service are contained in Part 90 of the Commission's Rules, 47 C.F.R. Part 90. On May 21, 1998, the Commission released a Memorandum Opinion and Order on Reconsideration in PR Docket No. 89-552. Among other things the Commission removed the spectrum efficiency standard that applied to equipment operating in the 220-222 MHz band, eliminated installment payments for small businesses and very small businesses, and increased bidding credits for such entities. Due Diligence: Potential bidders are reminded that there are a number of incumbent Phase I 220 MHz licensees already licensed and operating on frequencies that will be subject to the upcoming auction. Such incumbents must be protected from harmful interference by Phase II 220 MHz licensees in accordance with the Commission's Rules. See 47 C.F.R.  90.763. These limitations may restrict the ability of such geographic area licensees to use certain portions of the electromagnetic spectrum or provide service to certain areas in their geographic license areas. In addition, potential bidders seeking licenses for geographic areas that are near the Canadian border should be aware that the use of some or all of the channels they acquire in the auction could be restricted as a result of a future agreement with Canada on the use of 220-222 MHz spectrum in the border area. Potential bidders should also be aware that certain applications (including those for modification), waiver requests, petitions for reconsideration and applications for review are pending before the Commission that relate to particular incumbent non-nationwide 220 MHz licensees. We note that resolution of these matters could have an impact on the availability of spectrum for EA and EAG licensees. In addition, while the Commission will continue to act on pending applications, requests and petitions, some of these matters may not be resolved by the time of the auction. Potential bidders are solely responsible for investigating and evaluating the degree to which such pending matters may affect spectrum availability in areas where they seek EA or EAG licenses. To aid potential bidders, Attachment B to this Public Notice lists pending matters of which the Commission is aware that relate to licenses or applications for the 220 MHz service. The Commission makes no representations or guarantees that the listed matters are the only pending matters that could affect spectrum availability in the 220-222 MHz band. Parties may submit additions or corrections to the list, provided such additions or corrections are filed with the Commission within ten (10) business days from release of this Public Notice. Such submissions should be limited to identifying pleadings or papers previously filed with the Commission. No new pleadings or arguments on the merits will be accepted as explicitly provided by Commission Rules. Corrections and additions must be filed with the Office of the Secretary, Federal Communications Commission, 1919 M Street, N.W., Washington, D.C. 20554. One copy of each submission should also be sent to International Transcription Service, Inc., 1231 20th Street, N.W., Washington, D.C. 20036, while an additional courtesy copy may be sent to Scott A. Mackoul, Policy and Rules Branch, Commercial Wireless Division, Wireless Telecommunications Bureau, Federal Communications Commission, 2100 M Street, N.W., 7th Floor, Washington, D.C. 20554. Parties filing additions or corrections should include the internal reference number (DA 98-1010) on their submissions. Parties are also reminded that some of the proceedings are restricted proceedings governed by the Commission's ex parte rules. Accordingly, any submission filed pursuant to this Public Notice that is directed to the merits or outcome of any restricted proceeding must be served on all parties to that restricted proceeding. See generally 47 C.F.R.  1.1200-1.1216. Additional information regarding matters identified in Attachment B is available to the public. Licensing information is contained in the Commission's licensing database, which is available for inspection in the Wireless Telecommunications Bureau's Public Reference Rooms, located at 2025 M Street, N.W., Room 5608, Washington, D.C. 20554, and 1270 Fairfield Road, Gettysburg, PA 17325. In addition, copies of the pleadings are available for public inspection only in the Gettysburg Public Reference Room. In addition, potential bidders may search for information (but not the pleadings) regarding incumbent 220 MHz licensees on the World Wide Web at http://www.fcc.gov/wtb. In particular, information can be accessed by downloading databases by selecting "WTB Database Files" (http://www.fcc.gov/wtb/databases.html), or searching on-line by selecting "Search WTB Databases" (http://gullfoss.fcc.gov:8080/cgi-bin/ws.exe/beta/genmen/index.hts). Any telephone inquires regarding these matters should be directed to the Technical Support Hotline at (202) 414-1250 (V) or (202) 414-1255 (TTY). The Commission makes no representations or guarantees regarding the accuracy or completeness of information that has been provided by incumbent licensees and incorporated into the database. Potential bidders are strongly encouraged to physically inspect any sites located in or near the geographic area for which they plan to bid. Participation: Those wishing to participate in the auction must:  Submit a short form application (FCC Form 175) by the above-listed deadline.  Submit a sufficient upfront payment and an FCC Remittance Advice Form (FCC Form 159) by the above-listed deadline.  Comply with all provisions outlined in this Public Notice. Prohibition of Collusion: To ensure the competitiveness of the auction process, the Commission's Rules prohibit applicants for the same geographic license area from communicating with each other during the auction about bids, bidding strategies, or settlements. This prohibition begins with the filing of short-form applications, and ends on the down payment due date. In the 220 MHz Service auction, for example, the rule would apply to an applicant bidding for an EAG and an applicant bidding for an EA within that EAG. Applicants that apply to bid for "all markets" or a nationwide license would be precluded from communicating with all other applicants. An exception is where applicants enter into a bidding agreement before filing their short-form applications, and disclose the existence of the agreement in their short-form applications. See 47 C.F.R.  1.2105(c). We note that Section 1.65 of the Commission's Rules requires an applicant to maintain the accuracy and completeness of information furnished in its pending application and to notify the Commission within 30 days of any substantial change that may be of decisional significance to that application. Thus, Section 1.65 requires an auction applicant to bring to the Commission's attention any communication not permissible under the applicant's certification of compliance with Section 1.2105(c). Finally, bidders are reminded that they have a duty to notify the Commission of any violation of the anti-collusion rules upon learning of such violation. Bidders are therefore required to make such notification to the Commission immediately upon discovery. Bidder Information Package: More complete details about this auction are contained in a Bidder Information Package. The Commission will provide one copy to each company free of charge. Additional copies may be ordered at a cost of $16.00 each, including postage, payable by Visa or Master Card, or by check payable to "Federal Communications Commission" or "FCC." To place an order, contact the FCC National Call Center at (888) CALL-FCC ((888) 225-5322, press option #2 at the prompt). Prospective bidders that have already contacted the FCC at this number expressing an interest in this auction will receive a Bidder Information Package in approximately three weeks, and need not call again unless they wish to order additional copies. Relevant Authority: Prospective bidders must familiarize themselves thoroughly with the Commission's Rules relating to the Phase II 220 MHz Service, contained in Title 47, Part 90 of the Code of Federal Regulations, and those relating to application and auction procedures, contained in Title 47, Part 1 of the Code of Federal Regulations. Prospective bidders must also be thoroughly familiar with the procedures, terms and conditions (collectively, "Terms") contained in Amendment of Part 90 of the Commission's Rules to Provide for the Use of the 220-222 MHz Band by the Private Land Mobile Radio Service, PR Docket No. 89-552, RM-8506, GN Docket No. 93-252, PP Docket No. 93-253, Third Report and Order and Fifth Notice of Proposed Rulemaking, 12 FCC Rcd 10943 (1997) ("220 MHz Third Report and Order"). The Commission resolved petitions for reconsideration of the 220 MHz Third Report and Order in Amendment of Part 90 of the Commission's Rules to Provide for the Use of the 220-222 MHz Band by the Private Land Mobile Radio Service, Implementation of Sections 3(n) and 332 of the Communications Act, Regulatory Treatment of Mobile Services, Implementation of Section 309(j) of the Communications Act -- Competitive Bidding, PR Docket No. 89-552, GN Docket No. 93-252, PP Docket No. 93-253, FCC 98-93, Memorandum Opinion and Order on Reconsideration (rel. May 21, 1998) ("220 MHz MO&O"). For general background on the Phase I 220 MHz Service, see, among other materials: Amendment of Part 90 of the Commission's Rules to Provide for the Use of the 220-222 MHz Band by the Private Land Mobile Radio Services, PR Docket No. 89-552, Report and Order, 6 FCC Rcd 2356 (1991); Amendment of Part 90 of the Commission's Rules to Provide for the Use of the 220-222 MHz Band by the Private Land Mobile Radio Services, PR Docket No. 89-552, Memorandum Opinion and Order, 7 FCC Rcd 4484 (1992). For further information about the 220 MHz Service, see Amendment of Part 90 of the Commission's Rules to Provide for the Use of the 220-222 MHz Band by the Private Land Mobile Radio Service, PR Docket No. 89-552, GN Docket No. 93-252, Second Report and Order, 11 FCC Rcd 3668 (1996) ("220 MHz Second Report and Order"); Amendment of Part 90 of the Commission's Rules to Provide for the Use of the 220-222 MHz Band by the Private Land Mobile Radio Service, PR Docket No. 89-552, Fourth Report and Order, 12 FCC Rcd 13453 (1997). The Terms contained in the Commission's Rules, relevant orders, public notices and bidder information package are not negotiable. Potential bidders are reminded that the 220 MHz MO&O, released May 21, 1998, which resolved petitions for reconsideration filed in response to the 220 MHz Second Report and Order and the 220 MHz Third Report and Order altered some of the decisions and rules adopted in those orders. In addition, the decisions reached in the 220 MHz proceeding are the subject of a judicial appeal and may be the subject of additional reconsideration or appeal. See, e.g., PLMRS Narrowband Corp., et al. v. Federal Communications Commission, No. 92-1432, et al. (D.C. Cir., filed September 18, 1992). The Commission may amend or supplement the information contained in our public notices or the bidder information package at any time, and will issue public notices to convey any new or supplemental information to bidders. It is the responsibility of all prospective bidders to remain current with all Commission Rules and with all public notices pertaining to this auction. Copies of most Commission documents, including public notices, can be retrieved from the FCC Internet node via anonymous ftp @ftp.fcc.gov or the FCC World Wide Web site at http://www.fcc.gov/wtb/auctions. Additionally, documents may be obtained for a fee by calling the Commission's copy contractor, International Transcription Service, Inc., at (202) 857-3800. Bidder Alerts: All applicants must certify on their FCC Form 175 applications under penalty of perjury that they are legally, technically, financially and otherwise qualified to hold a license, and not in default on any payment for Commission licenses (including down payments) or delinquent on any non-tax debt owed to any Federal agency. Prospective bidders are reminded that submission of a false certification to the Commission is a serious matter that may result in severe penalties, including monetary forfeitures, license revocations, exclusion from participation in future auctions, and/or criminal prosecution. The FCC makes no representations or warranties about the use of this spectrum for particular services. Applicants should be aware that an FCC auction represents an opportunity to become an FCC licensee in this service, subject to certain conditions and regulations. An FCC auction does not constitute an endorsement by the FCC of any particular services, technologies or products, nor does an FCC license constitute a guarantee of business success. Applicants should perform their individual due diligence before proceeding as they would with any new business venture. As is the case with many business investment opportunities, some unscrupulous entrepreneurs may attempt to use the Phase II 220 MHz Service auction to deceive and defraud unsuspecting investors. Common warning signals of fraud include the following: The first contact is a "cold call" from a telemarketer, or is made in response to an inquiry prompted by a radio or television infomercial. The offering materials used to invest in the venture appear to be targeted at IRA funds, for example by including all documents and papers needed for the transfer of funds maintained in IRA accounts. The amount of the minimum investment is less than $25,000. The sales representative makes verbal representations that: (a) the Internal Revenue Service ("IRS"), Federal Trade Commission ("FTC"), Securities and Exchange Commission ("SEC"), FCC, or other government agency has approved the investment; (b) the investment is not subject to state or federal securities laws; or (c) the investment will yield unrealistically high short-term profits. In addition, the offering materials often include copies of actual FCC releases, or quotes from FCC personnel, giving the appearance of FCC knowledge or approval of the solicitation. Information about deceptive telemarketing investment schemes is available from the FTC at (202) 326-2222 and from the SEC at (202) 942-7040. Complaints about specific deceptive telemarketing investment schemes should be directed to the FTC, the SEC, or the National Fraud Information Center at (800) 876-7060. Consumers who have concerns about specific Phase II 220 MHz Service proposals may also call the FCC National Call Center at (888) CALL-FCC ((888) 225-5322). 2. BIDDER ELIGIBILITY AND SMALL BUSINESS PROVISIONS A. General Eligibility Criteria As described above, this auction offers: (1) five licenses in each of 172 geographic areas known as Economic Areas (EAs) and three EA-like areas; (2) five licenses in six Economic Area Groupings (EAGs); and (3) three Nationwide licenses which encompass the same territory as all of the EAGs combined (see Attachment A for a complete listing of licenses). (1) Determination of Revenues For purposes of determining which entities qualify as very small businesses or small businesses, the Commission will attribute to the applicant the gross revenues of all of its controlling principals and affiliates. For purposes of this auction, the Commission will not impose specific equity requirements on controlling principals. However, in order to qualify as a very small business or small business, an applicant's qualifying principals must maintain control of the applicant. The term "control" includes both de facto and de jure control of the applicant. Typically, de jure control is evidenced by ownership of at least 50.1 percent of an entity's voting stock. De facto control is determined on a case-by-case basis. The following are some common indicia of control: þ the entity constitutes or appoints more than 50 percent of the board of directors or management committee; þ the entity has authority to appoint, promote, demote, and fire senior executives that control the day-to-day activities of the licensee; or þ the entity plays an integral role in management decisions. (2) Application Showing Applicants should note that they will be required to file supporting documentation to establish that they satisfy the eligibility requirements to qualify as a very small business or small business for this auction. See 47 C.F.R.  90.1009 and 1.2105. B. Bidding Credits Qualifying Phase II 220 MHz applicants are eligible for bidding credits. The size of a Phase II 220 MHz bidding credit depends on the annual gross revenues of the bidder and its controlling principals and affiliates, as averaged over the preceding three years: þ A bidder with gross annual revenues of not more than $15 million receives a 25 percent discount on its winning bids for Phase II 220 MHz Service licenses; and, þ A bidder with gross annual revenues of not more than $3 million receives a 35 percent discount on its winning bids for Phase II 220 MHz Service licenses. Bidding credits are not cumulative: applicants that qualify receive either the 25 percent or the 35 percent bidding credit, but not both. The definitions of very small business and small business (including calculation of gross annual revenue) are set forth in 47 C.F.R.  90.1021(b). Phase II 220 MHz Service bidders should note that unjust enrichment provisions apply to winning bidders that use bidding credits and subsequently assign or transfer control of their EA, EAG or Nationwide licenses to an entity not qualifying for the same levels of bidding credits. See 47 C.F.R.  90.1017(b). Finally, Phase II 220 MHz Service bidders should also note that there are no installment payment plans in the 220 MHz Service auction. 3. PRE-AUCTION PROCEDURES A. Short-Form Application (FCC Form 175) -- Due August 17, 1998 In order to be eligible to bid in this auction, applicants must first submit an FCC Form 175 application. This application must be received at the Commission by 5:30 p.m. ET on August 17, 1998. Late applications will not be accepted. There is no application fee required when filing an FCC Form 175. However, to be eligible to bid, an applicant must submit an upfront payment. See 3.C, infra. (1) Filing Options Auction applicants are strongly encouraged to file their applications electronically in order to take full advantage of the greater efficiencies and convenience of electronic filing, bidding and access to bidding data. For example, electronic filing enables the applicant to: (a) receive interactive feedback while completing the application; and (b) receive immediate acknowledgment that the FCC Form 175 has been submitted for filing. In addition, only those applicants that file electronically will have the option of bidding electronically. However, manual filing (via hard copy) is also permitted. Please note that manual filers will not be permitted to bid electronically and must bid telephonically, unless the FCC Form 175 is amended electronically prior to the resubmission date for incomplete or deficient applications. Applicants that file electronically may make amendments to their applications until the filing deadline. The following is a brief description of each filing method. (a) Electronic Filing Applicants wishing to file electronically may generally do so on a 24-hour basis beginning July 20, 1998. The window for filing the FCC Form 175 electronically will remain open until 5:30 p.m. ET on August 17, 1998. Information about installing and running the FCC Form 175 application software is included in Attachment D to this Public Notice. Technical support is available at (202) 414-1250 (V) or (202) 414-1255 (TTY); the hours of service are 8 a.m. - 6 p.m. ET, Monday - Friday, and 9 a.m. - 5 p.m. ET, the weekend of August 15-16. (b) Manual Filing Auction applicants will be permitted to file their FCC Form 175 applications in hard copy. When any manually filed FCC Form 175 and 175-S exceeds five pages in length, the FCC additionally requires that all attachments be submitted on a 3.5-inch diskette, or the entire application be filed in a microfiche version. Manual filers must use the May 1998 version of FCC Form 175 and the October 1995 edition of the 175-S (if applicable). Earlier versions of the FCC Form 175 will not be accepted for filing. Copies of FCC Forms 175 and 175-S can be obtained by calling (202) 418-FORM. Manual applications may be submitted by hand delivery (including private "overnight" courier) or by U.S. mail (certified mail with return receipt recommended), addressed to: FCC Form 175 Filing, Auction No. 18 Federal Communications Commission Wireless Telecommunications Bureau Auctions & Industry Analysis Division 1270 Fairfield Road Gettysburg, PA 17325-7245 NOTE: Manual applications delivered to any other location will not be accepted. (2) Completion of the FCC Form 175 Applicants should carefully review 47 C.F.R.  90.1009 and 1.2105, and must complete all items on the FCC Form 175 (and Form 175-S, if applicable). Instructions for completing the FCC Form 175 are in Attachment C of this Public Notice. Failure to sign a manually filed FCC Form 175 (for both electronic and manual filers) will result in dismissal of the application and loss of the ability to participate in the auction. Only original signatures will be accepted for manually filed applications. (3) Electronic Review of FCC Form 175 The FCC Form 175 review software may be used to review and print applicants' FCC Form 175 applications. In other words, applicants that file electronically may review their own completed FCC Form 175. Applicants also have access to view other applicants' completed FCC Form 175s, after the filing deadline has passed and the FCC has issued a public notice explaining the status of the applications. There is a fee of $2.30 per minute for accessing this system. See Attachment D for details. B. Application Processing and Minor Corrections After the deadline for filing the FCC Form 175 applications has passed, the FCC will process all timely applications to determine which are acceptable for filing, and subsequently will issue a public notice identifying: (1) those applications accepted for filing (including FCC account numbers and the licenses for which they applied); (2) those applications rejected; and (3) those applications which have minor defects that may be corrected, and the deadline for filing such corrected applications. As described more fully in the Commission's Rules, after the August 17, 1998, short form filing deadline, applicants may make only minor corrections to their FCC Form 175 applications. Applicants will not be permitted to make major modifications to their applications (e.g., change their license selections, change the certifying official or change control of the applicant). See 47 C.F.R.  90.1009 and 1.2105. C. Upfront Payments -- Due August 31, 1998 In order to be eligible to bid in the auction, applicants must submit an upfront payment accompanied by an FCC Remittance Advice Form (FCC Form 159). Manual filers must use the July 1997 version of FCC Form 159. Earlier versions of this form will not be accepted. All upfront payments must be received at Mellon Bank in Pittsburgh, PA, by 6:00 p.m. ET on August 31, 1998. Please note that: þ All payments must be made in U.S. dollars. þ All payments must be made by wire transfer. þ Upfront payments for Auction No. 18 go to a lockbox number different from the ones used in previous FCC auctions, and different from the lockbox number to be used for post-auction payments. þ Failure to deliver the upfront payment by the August 31, 1998 deadline will result in dismissal of the application and disqualification from participation in the auction. (1) Making Auction Payments by Wire Transfers Wire transfer payments must be received by 6:00 p.m. ET on August 31, 1998. To avoid untimely payments, applicants should discuss arrangements (including bank closing schedules) with their banker several days before they plan to make the wire transfer, and allow sufficient time for the transfer to be initiated and completed before the deadline. Applicants will need the following information: ABA Routing Number: 043000261 Receiving Bank: Mellon Pittsburgh BNF: FCC/AC 910-0171 OBI Field: (Skip one space between each information item) "AUCTIONPAY" TAXPAYER IDENTIFICATION NO. (same as FCC Form 159, block 26) PAYMENT TYPE CODE (enter "A22U") FCC CODE 1 (same as FCC Form 159, block 23A: "18") PAYER NAME (same as FCC Form 159, block 2) LOCKBOX NO. 358430 NOTE: The BNF and Lockbox number are specific to the upfront payments for this auction; do not use BNF or Lockbox numbers from previous auctions. Applicants must fax a completed FCC Form 159 to Mellon Bank at (412) 236-5702 at least one hour before placing the order for the wire transfer (but on the same business day). On the cover sheet of the fax, write "Wire Transfer - Auction Payment for Auction Event No. 18." Bidders may confirm receipt of their upfront payment at Mellon Bank by contacting their sending financial institution. (2) FCC Form 159 Each upfront payment must be accompanied by a completed FCC Remittance Advice Form (FCC Form 159). Proper completion of FCC Form 159 is critical to ensuring correct credit of upfront payments. Detailed instructions for completion of FCC Form 159 are included in Attachment C to this Public Notice and will also be included in the Bidder Information Package. (3) Amount of Upfront Payment In the 220 MHz Third Report and Order, the Commission delegated to the Bureau the authority and discretion to determine an appropriate upfront payment for each license being auctioned. In the 220 MHz Public Notice, we proposed for the Phase II 220 MHz Service auction an upfront payment of one cent per MHz/POP with no amount less than $2,500. AMTA urged the Bureau to reduce the proposed upfront payment, emphasizing that the proposed amounts represent a barrier to entry for the many very small telecommunications businesses that may otherwise seek to participate. The amount of spectrum in each 220 MHz license to be auctioned is very small, limiting the types of services that can be provided. The band is currently in use to offer, and new licensing rules largely are designed to foster, low-cost, primarily business dispatch communications. Thus, AMTA concluded, use of an upfront payment formula similar to that used to calculate upfront payments for PCS-like services -- more expensive personal services offered across much larger bandwidth -- is inappropriate. For the Phase II 220 MHz Service auction we will adopt our proposal of one cent per MHz/POP with no amount less than $2,500. This upfront payment amount, based upon the data in Attachment A, will be the amount required to bid on a particular license(s) in Auction No. 18. We believe that this is the appropriate upfront payment formula, considering such factors as the population in each geographic license area, and the value of spectrum similar to that being offered in the 220 MHz Service. We note that this upfront payment amount is lower than that used in many previous auctions -- e.g., the PCS spectrum auctions -- but we believe a reduction is appropriate, for the reasons expressed by AMTA, namely, the size of the likely participants in the 220 MHz Service auction. Please note that upfront payments are not attributed to specific licenses, but instead will be translated to bidding units to define the bidder's maximum bidding eligibility. For Auction No. 18, the total number of bidding units assigned to each bidder is equal to the amount of the upfront payment, e.g., a $25,000 upfront payment provides the bidder with 25,000 bidding units. The total upfront payment defines the maximum amount of bidding units on which the applicant will be permitted to bid (including standing high bids) in any single round of bidding. Thus, an applicant does not have to make an upfront payment to cover all licenses for which the applicant has applied, but rather to cover the maximum number of bidding units associated with licenses the bidder wishes to place bids on and hold high bids on at any given time. In order to be able to place a bid on a license, in addition to having specified that license on FCC Form 175, a bidder must have an eligibility level that meets or exceeds the number of bidding units assigned to that license. At a minimum, an applicant's total upfront payment must be enough to establish eligibility to bid on at least one of the licenses applied for on FCC Form 175, or else the applicant will not be eligible to participate in the auction. In calculating the upfront payment amount, an applicant should determine the maximum number of bidding units it may wish to bid on in any single round, and submit an upfront payment covering that number of bidding units. NOTE: An applicant may, on its FCC Form 175, apply for every license being offered, but its actual bidding in any round will be limited by the bidding units reflected in its upfront payment. (4) Applicant's Wire Transfer Information for Purposes of Refunds Because experience with prior auctions has shown that in most cases wire transfers provide quicker and more efficient refunds than paper checks, the Commission will use wire transfers for all Auction No. 18 refunds. To avoid delays in processing refunds, applicants should include wire transfer instructions with any refund request they file; they may also provide this information in advance by faxing it to the FCC Billings and Collections Branch, ATTN: Linwood Jenkins or Geoffrey Idika, at (202) 418-2843. Please include the following information: Name of Bank ABA Number Account Number to Credit Correspondent Bank (if applicable) ABA Number Account Number Contact and Phone Number (Applicants should also note that implementation of the Debt Collection Improvement Act of 1996 requires the FCC to obtain a Taxpayer Identification Number (TIN) before it can disburse refunds.) Eligibility for refunds is discussed in 5.D., infra. D. Auction Registration Approximately ten days before the auction, the FCC will issue a public notice announcing all qualified bidders for the auction. Qualified bidders are those applicants whose FCC Form 175 applications have been accepted for filing and that have timely submitted upfront payments sufficient to make them eligible to bid on at least one of the licenses for which they applied. All qualified bidders are automatically registered for the auction. Registration materials will be distributed prior to the auction by two separate overnight mailings, each containing part of the confidential identification codes required to place bids. These mailings will be sent only to the contact person at the applicant address listed in the FCC Form 175. Applicants that do not receive both registration mailings will not be able to submit bids. Therefore, any qualified applicant that has not received both mailings by noon on Thursday, September 10, 1998 should contact the FCC National Call Center at (888) CALL-FCC ((888) 225-5322, press option #2 at the prompt). Receipt of both registration mailings is critical to participating in the auction and each applicant is responsible for ensuring it has received all of the registration material. Qualified bidders should note that lost login codes, passwords or bidder identification numbers can be replaced only by appearing in person at the FCC Auction Headquarters located at 2 Massachusetts Avenue, N.E., Washington, D.C. 20002. Only an authorized representative or certifying official, as designated on an applicant's FCC Form 175, may appear in person with two forms of identification (one of which must be a photo identification) in order to receive replacement codes. E. Remote Electronic Bidding Software Qualified bidders that file or amend the FCC Form 175 electronically are allowed to bid electronically, but must purchase remote electronic bidding software for $175.00 by September 1, 1998. (Auction software is tailored to a specific auction, so software from prior auctions will not work for Auction No. 18.) A software order form is included in the Bidder Information Package. F. Auction Seminar On August 6, 1998, the FCC will sponsor a seminar for the Phase II 220 MHz Service auction in Washington, D.C. The seminar will provide attendees with information about pre-auction procedures, conduct of the auction, FCC remote bidding software, and the 220 MHz Service and auction rules. To register, complete the registration form to be included in the upcoming Phase II 220 MHz Service auction Bidder Information Package. The registration form will include details about the time and location of the seminar. Registrations are accepted on a first-come, first-served basis. G. Mock Auction All applicants whose FCC Form 175 and 175-S have been accepted for filing will be eligible to participate in a mock auction beginning September 11, 1998. The mock auction will enable applicants to become familiar with the electronic software prior to the auction. Free demonstration software will be available for use in the mock auction. Due to different bidding procedures in the Phase II 220 MHz Service auction from previous Commission auctions, participation by all bidders is strongly recommended. Details will be announced by public notice. 4. AUCTION EVENT The first round of the auction will begin on September 15, 1998. The initial round schedule will be announced in a Public Notice listing the qualified bidders, to be released approximately 10 days before the start of the auction. A. Auction Structure (1) Simultaneous Multiple Round Auction In the 220 MHz Public Notice, we proposed to award the 908 licenses in the Phase II 220 MHz Service in a single, simultaneous multiple round auction. SMR Advisory Group, L.C. ("SMRAG") supports the proposal to hold a single 220 MHz simultaneous multiple round auction. SEA, Inc. ("SEA") does not oppose the proposed license grouping. We conclude that the 908 Phase II 220 MHz Service licenses, including EA, EAG and Nationwide licenses, will be awarded through a single, simultaneous multiple round auction. Unless otherwise announced, bids will be accepted on all licenses in each round of the auction. This approach, we believe, is most administratively efficient. In addition, we agree with SMRAG that the Phase II 220 MHz licenses are interdependent and bidders may prefer to substitute different types of licenses during the same auction. (2) Maximum Eligibility and Activity Rules In the 220 MHz Public Notice, we proposed that the amount of the upfront payment submitted by a bidder would determine the initial maximum eligibility (as measured in bidding units) for each bidder. The only commenter on this issue, SEA, does not oppose this proposal. For the Phase II 220 MHz Service auction we will adopt this proposal. The amount of the upfront payment submitted by a bidder determines the initial maximum eligibility (in bidding units) for each bidder. Upfront payments are not attributed to specific licenses, but instead will be translated into bidding units to define a bidder's initial maximum eligibility. The total upfront payment defines the maximum number of bidding units on which the applicant will initially be permitted to bid. We note that there is no provision for increasing a bidder's maximum eligibility during the course of an auction. In order to ensure that the auction closes within a reasonable period of time, an activity rule requires bidders to bid actively throughout the auction, rather than wait until the end before participating. Bidders are required to be active on a specific percentage of their maximum eligibility during each round of the auction. A bidder is considered active on a license in the current round if it is either the high bidder at the end of the previous bidding round and does not withdraw the high bid in the current round, or if it submits an acceptable bid in the current round (see "Minimum Accepted Bids" in Part 4.B.(3), infra). A bidder's activity level in a round is the sum of the bidding units associated with licenses on which the bidder is active. The minimum required activity level is expressed as a percentage of the bidder's maximum bidding eligibility, and increases as the auction progresses. Because these procedures have proven successful in maintaining the pace of previous auctions as set forth under "Auction Stages" in Part 4.A.(4) and "Stage Transitions" in Part 4.A.(5), infra, we adopt them for the 220 MHz Service auction. (3) Activity Rule Waivers and Reducing Eligibility In the 220 MHz Public Notice, we proposed that each bidder in the auction would be provided five activity rule waivers that may be used in any round during the course of the auction. SEA does not oppose the use of waivers for the 220 MHz Service auction. Based upon our experience in previous auctions, we conclude that each bidder will be provided five activity rule waivers that may be used in any round during the course of the auction. Use of an activity rule waiver preserves the bidder's current bidding eligibility despite the bidder's activity in the current round being below the required minimum level. An activity rule waiver applies to an entire round of bidding and not to a particular license. The FCC auction system assumes that bidders with insufficient activity would prefer to use an activity rule waiver (if available) rather than lose bidding eligibility. Therefore, the system will automatically apply a waiver (known as an "automatic waiver") at the end of any round where a bidder's activity level is below the minimum required unless: (1) there are no activity rule waivers available; or (2) the bidder overrides the automatic application of a waiver by reducing eligibility, thereby meeting the minimum requirements. A bidder with insufficient activity that wants to reduce its bidding eligibility rather than use an activity rule waiver must affirmatively override the automatic waiver mechanism during the round by using the reduce eligibility function in the software. In this case, the bidder's eligibility is permanently reduced to bring the bidder into compliance with the activity rules as described in "Auction Stages," Part 4.A.(4). Once eligibility has been reduced, a bidder will not be permitted to regain its lost bidding eligibility. Finally, a bidder may proactively use an activity rule waiver as a means to keep the auction open without placing a bid. If a bidder submits a proactive waiver (using the proactive waiver function in the bidding software) during a round in which no bids are submitted, the auction will remain open and the bidder's eligibility will be preserved. An automatic waiver invoked in a round in which there are no new valid bids or withdrawals will not keep the auction open. (4) Auction Stages In the 220 MHz Public Notice, we proposed to conduct the auction in stages and employ an activity rule. We further proposed that, in each round of the first of three stages, a bidder desiring to maintain its current eligibility would be required to be active on licenses encompassing at least 80 percent of its current bidding eligibility. In each round of Stage Two, a bidder desiring to maintain its current eligibility would be required to be active on at least 90 percent of its current bidding eligibility. Finally, we proposed that a bidder in Stage Three, in order to maintain eligibility, would be required to be active on 98 percent of its current bidding eligibility. No comments were received on these proposals. We conclude that the auction will be composed of three stages, which are each defined by an increasing activity rule. Below are the proposed activity levels for each stage of the auction. The FCC reserves the discretion to alter the activity percentages before and/or during the auction. Stage One: In each round of the first stage of the auction, a bidder desiring to maintain its current eligibility is required to be active on licenses encompassing at least 80 percent of its current bidding eligibility. Failure to maintain the requisite activity level will result in a reduction in the bidder's bidding eligibility in the next round of bidding (unless an activity rule waiver is used). During Stage One, reduced eligibility for the next round will be calculated by multiplying the current round activity by five-fourths (5/4). Stage Two: In each round of the second stage, a bidder desiring to maintain its current eligibility is required to be active on 90 percent of its current bidding eligibility. During Stage Two, reduced eligibility for the next round will be calculated by multiplying the current round activity by ten-ninths (10/9). Stage Three: In each round of the third stage, a bidder desiring to maintain its current eligibility is required to be active on 98 percent of its current bidding eligibility. In this final stage, reduced eligibility for the next round will be calculated by multiplying the current round activity by fifty-fortyninths (50/49). CAUTION: Since activity requirements increase in each auction stage, bidders must carefully check their current activity during the bidding round of the first round following a stage transition. This is especially critical for bidders that have standing high bids and do not plan to submit new bids. In past auctions, some bidders have inadvertently lost bidding eligibility or used an activity rule waiver because they did not reverify their activity status at stage transitions. Bidders may check their activity against the required minimum activity level by using the bidding software's bidding module. Because the foregoing procedures have proven successful in maintaining proper tempo in previous auctions, we will adopt them for the Phase II 220 MHz Service auction. (5) Stage Transitions In the 220 MHz Public Notice, we proposed that the auction would advance to the next stage (i.e., from Stage One to Stage Two, and from Stage Two to Stage Three) when, in each of three consecutive rounds of bidding, the high bid has increased on 10 percent or less of the licenses being auctioned (as measured in bidding units). However, we further proposed that the Bureau would retain the discretion to accelerate the auction by announcement. This determination, we proposed, would be based on a variety of measures of bidder activity, including, but not limited to, the auction activity level, the percentages of licenses (as measured in bidding units) on which there are new bids, the number of new bids, and the percentage increase in revenue. No comments were received on this issue. We conclude that the auction will start in Stage One. Under the FCC's general guidelines it will advance to the next stage (i.e., from Stage One to Stage Two, and from Stage Two to Stage Three) when, in each of three consecutive rounds of bidding, the high bid has increased on 10 percent or less of the licenses being auctioned (as measured in bidding units). However, the Bureau will retain the discretion to regulate the pace of the auction by announcement. This determination will be based on a variety of measures of bidder activity, including, but not limited to, the auction activity level, the percentages of licenses (as measured in bidding units) on which there are new bids, the number of new bids, and the percentage increase in revenue. We believe that these stage transition rules, having proven successful in prior auctions, are appropriate for use in the Phase II 220 MHz Service auction. (6) Auction Stopping Rules In the 220 MHz Public Notice we proposed to retain the discretion to keep the auction open, even if no new acceptable bids or proactive waivers are submitted and no previous high bids are withdrawn. In addition, we proposed that the Bureau reserve the right to declare that the auction will end after a specified number of additional rounds ("special stopping rule"). If the Bureau invokes this special stopping rule, it will accept bids in the final round(s) only for licenses on which the high bid increased in at least one of the preceding specified number of rounds. We proposed to exercise this option only in circumstances such as where the auction is proceeding very slowly, where there is minimal overall bidding activity or where it appears likely that the auction will not close within a reasonable period of time. SEA, the only commenter on this issue, does not oppose our proposed stopping rules. Barring extraordinary circumstances, bidding will remain open on all licenses until bidding stops on every license. Thus, the auction will close for all licenses when one round passes during which no bidder submits a new acceptable bid on any license, applies a proactive waiver, or withdraws a previous high bid. The Bureau retains the discretion, however, to keep an auction open even if no new acceptable bids or proactive waivers are submitted, and no previous high bids are withdrawn. In this event, the effect will be the same as if a bidder had submitted a proactive waiver. Thus, the activity rule will apply as usual, and a bidder with insufficient activity will either lose bidding eligibility or use an activity rule waiver (if it has any left). Further, in its discretion, the Bureau reserves the right to declare that the auction will end after a specified number of additional rounds ("special stopping rule"). If the FCC invokes this special stopping rule, it will accept bids in the final round(s) only for licenses on which the high bid increased in at least one of the preceding specified number of rounds. The FCC intends to exercise this option only in extreme circumstances, such as where the auction is proceeding very slowly, where there is minimal overall bidding activity, or where it appears likely that the auction will not close within a reasonable period of time. Before exercising this option, the FCC is likely to attempt to increase the pace of the auction by, for example, moving the auction into the next stage (where bidders would be required to maintain a higher level of bidding activity), increasing the number of bidding rounds per day, and/or increasing the amount of the minimum bid increments for the limited number of licenses where there is still a high level of bidding activity. Adoption of these rules, we believe, is most appropriate for the Phase II 220 MHz auction because our experience in prior auctions demonstrates that the simultaneous stopping rule balanced the interests of administrative efficiency and maximum bidder participation. The substitutability between and among licenses in different geographic areas and the importance of preserving the ability of bidders to pursue backup strategies support the use of a simultaneous stopping rule. (7) Auction Delay, Suspension, or Cancellation In the 220 MHz Public Notice, we proposed that, by public notice or by announcement during the auction, the Bureau may delay, suspend, or cancel the auction in the event of natural disaster, technical obstacle, evidence of an auction security breach, unlawful bidding activity, administrative or weather necessity, or for any other reason that affects the fair and competitive conduct of competitive bidding. The only commenter addressing this issue, SEA, did not oppose this proposal. Because this approach has proven effective in resolving exigent circumstances in previous auctions, we will adopt our proposed auction cancellation rules. By public notice or by announcement during the auction, the Bureau may delay, suspend or cancel the auction in the event of natural disaster, technical obstacle, evidence of an auction security breach, unlawful bidding activity, administrative or weather necessity, or for any other reason that affects the fair and competitive conduct of competitive bidding. In such cases, the Bureau, in its sole discretion, may elect to: resume the auction starting from the beginning of the current round; resume the auction starting from some previous round; or cancel the auction in its entirety. Network interruption may cause the Bureau to delay or suspend the auction. We emphasize that exercise of this authority is solely within the discretion of the Bureau, and its use is not intended to be a substitute for situations in which bidders may wish to apply their activity rule waivers. B. Bidding Procedures (1) Round Structure The initial bidding schedule will be announced by public notice at least one week before the start of the auction, and will be included in the registration mailings. The round structure for each bidding round contains a single bidding round followed by the release of the round results. The FCC has discretion to change the bidding schedule in order to foster an auction pace that reasonably balances speed with the bidders' need to study round results and adjust their bidding strategies. The FCC may increase or decrease the amount of time for the bidding rounds and review periods, or the number of rounds per day, depending upon the bidding activity level and other factors. (2) Reserve Price or Minimum Opening Bid a. Background The Balanced Budget Act of 1997 calls upon the Commission to prescribe methods by which a reasonable reserve price will be required or a minimum opening bid established when FCC licenses are subject to auction (i.e., because they are mutually exclusive), unless the Commission determines that a reserve price or minimum opening bid is not in the public interest. Consistent with this mandate, the Commission has directed the Wireless Telecommunications Bureau ("Bureau") to seek comment on the use of a minimum opening bid and/or reserve price prior to the start of each auction. The Bureau was directed to seek comment on the methodology to be employed in establishing each of these mechanisms. Among other factors, the Bureau should consider the amount of spectrum being auctioned, levels of incumbency, the availability of technology to provide service, the size of the geographic service areas, the extent of interference with other spectrum bands, and any other relevant factors that could have an impact on valuation of the spectrum being auctioned. The Commission concluded that the Bureau should have the discretion to employ either or both of these mechanisms for future auctions. In the 220 MHz Public Notice, the Bureau proposed to establish minimum opening bids for the 220 MHz Service auction and to retain discretion to lower the minimum opening bids. Specifically, the Bureau proposed the following formula for calculating minimum opening bids for Auction 18: 1. EA Licenses $0.0175 MHz * POP 2. EAG Licenses $0.015 MHz * POP 3. Nationwide Licenses $0.02 MHz * POP with a minimum of no less than $2,500 per license. In the alternative, the Bureau sought comment on whether, consistent with the Balanced Budget Act, the public interest would be served by having no minimum opening bid or reserve price. b. Comments American Mobile Telecommunications Association, Inc. ("AMTA") and SMRAG contend that use of minimum opening bids is contrary to the public interest, and therefore they urge the Commission to exercise its discretion not to impose minimum opening bids. By establishing minimum opening bids, they assert, the Commission is substituting its valuation of the spectrum for that of the marketplace. Auction participants are in a better position to determine the value of the spectrum. AMTA asserts that incumbent operators have intimate knowledge of the usability of a particular narrowband channel within a particular encumbered geographic area. If a minimum bid formula is adopted, AMTA urged the Bureau to adjust its formulation, reducing minimum bid amounts in order to reduce barriers for those that wish to participate. AMTA noted that the amount of spectrum included in each 220 MHz license to be auctioned is very small, limiting the types of services that can be provided. Proposed minimum bid amounts for regional 220 MHz licenses (EAGs), AMTA continued, equate roughly to the cost of two base station facilities capable of providing service to 200 miles or more of licensed geography due to lower infrastructure costs and enhanced propagation. SMRAG notes that it is not unreasonable for a license winner to obtain a license for a nominal amount, because it will incur substantial expense by participating in the auction and the spectrum may otherwise remain fallow despite the interest of entrepreneurs. If a license is not awarded because the highest bid falls below the reserve price or no bids are made due to the minimum opening bid, then the auction has failed to achieve its primary goal: assignment of licenses to those that value them the most. SEA initially proposed the use of a minimum opening bid for the 220 MHz Service auction, based on a formula using $0.02 per MHz per population, with a 25 percent discount for Economic Area Groupings (EAGs) and for Economic Area (EA) licenses to reflect the level of incumbency within the 220 MHz service and a minimum opening bid of no less than $2,500. This formula, SEA states, is consistent with Congress' goal in enacting the reserve price/minimum opening bid provision, meets the public interest objectives of the competitive bidding provisions of the Communications Act, is consistent with Commission precedent, and takes into account the existence of incumbents on the 220 MHz band. Use of this formula, SEA contends, would not produce prices that are so unreasonably high as to discourage wide and robust bidding in the 220 MHz Service. SEA ultimately supports the Commission's proposed formula for calculating minimum opening bids. SEA notes that the Bureau's formula for Nationwide and EAG licenses is identical to that which it had proposed. The proposed EA formula is similar to that of SEA's, in that both include a discount factor. AMTA contends the unique characteristics of the 220 MHz band were not considered by the Bureau in establishing the minimum opening bid formula. The proposed formula, AMTA contends, presupposes the potential geometrical increase in subscribership, based on the ability to develop a wide variety of service offerings when generous amounts of spectrum are acquired. The value of the spectrum is therefore not necessarily reflected in the formula. AMTA also states that use of a $2,500 minimum is arbitrary, contending that the failure of the Commission to recognize the unique characteristics of this band highlights the inherent difficulty of the Commission's attempt to determine the value of the spectrum by establishing minimum opening bids. c. Discussion We adopt minimum opening bids for each of the licenses in the Phase II 220 MHz Service auction that are reducible at the discretion of the Bureau. The levels will be set as follows: 1. EA Licenses $0.015 MHz * POP 2. EAG Licenses $0.0125 MHz * POP 3. Nationwide Licenses $0.0175 MHz * POP with a minimum of no less than $2,500 per license. As was the case in prescribing minimum opening bids in the auction of the upper channels in the 800 MHz SMR service and the LMDS auctions, Congress has enacted a presumption that unless the Commission determines otherwise, minimum opening bids or reserve prices are in the public interest. The Bureau is unpersuaded by commenters' assertions that minimum opening bids for the Phase II 220 MHz Service auction are not in the public interest. For example, we disagree with the assertion that minimum opening bids are inconsistent with valuation by the marketplace. The use of competitive bidding implements the principle that the marketplace should determine the value of this spectrum. The use of a minimum opening bid does not undermine that principle. As we have previously stated, minimum opening bids can help speed the auction process and ensure that licenses are not dramatically undervalued. This conclusion is fully consistent with the public interest goals set forth in the Communications Act. Setting the level of the minimum opening bids is a difficult task, especially in the case of the Phase II 220 MHz Service where the channels are narrow, encumbered and the potential uses of the band remain to be explored. To address this concern, the minimum opening bids adopted here are reducible. This will allow the Bureau flexibility to adjust the minimum opening bids if circumstances warrant. We emphasize, however, that such discretion will be exercised sparingly and early in the auction, i.e., before bidders lose all waivers and begin to lose eligibility. During the course of the auction, the Bureau will not entertain any bidder requests to reduce the minimum opening bid on specific licenses. We conclude that the revised formula presented here best meets the objectives of our auction authority in establishing a reasonable minimum opening bid. We have noted in the past that the reserve price and minimum opening bid provision is not a requirement to maximize auction revenue but rather a protection against assigning licenses at unacceptably low prices and that we must balance the revenue raising objective against our other public interest objectives in setting the minimum bid level. In doing so, we agree with AMTA that the 220 MHz channels are narrow and the likely auction participants will be small business entrepreneurs. In addition, we recognize that the EAG licenses are more substantially encumbered than are the other license types. We have adjusted our minimum opening bids accordingly. In sum, our experience in using minimum opening bids in the 800 MHz SMR auction and the LMDS auction supports the fact that minimum opening bids promote efficient allocation of licenses and speed the course of the auction while ensuring that valuable assets are not sold for nominal prices. (3) Minimum Accepted Bids In the 220 MHz Public Notice, we proposed to use an exponential smoothing methodology to calculate minimum bid increments. We further proposed to retain the discretion to change the minimum bid increment if circumstances so dictate. The only commenter on this issue, SEA, does not oppose this proposal. Because these techniques have proven effective in prior auctions, we adopt our proposal for the 220 MHz Service auction. Once there is a standing high bid on a license, a bid increment will be applied to that license to establish a minimum acceptable bid for the following round. For the Phase II 220 MHz Service auction, we will utilize, as described immediately below, an exponential smoothing methodology to calculate minimum bid increments. The Bureau retains the discretion to change the minimum bid increment if it determines that circumstances so dictate. The exponential smoothing methodology has been used in previous auctions, including the WCS auction and the 800 MHz SMR auction. Exponential Smoothing The exponential smoothing formula calculates the bid increment for each license based on a weighted average of the activity received on each license in the current and all previous rounds. This methodology will tailor the bid increment for each license based on activity, rather than setting a global increment for all licenses. For every license that receives a bid, the bid increment for the next round for that license will be established using the exponential smoothing formula. Using exponential smoothing, the calculation of the percentage bid increment for each license will be based on an activity index, which is calculated as the weighted average of the current activity and the activity index from the previous round. The activity index at the start of the auction (round 0) will be set at 0. The current activity index is equal to a weighting factor times the number of new bids received on the license in the current bidding round plus one minus the weighting factor times the activity index from the previous round. The activity index is then used to calculate a percentage increment by multiplying a minimum percentage increment by one plus the activity index with that result being subject to a maximum percentage increment. The Commission will initially set the weighting factor at 0.5, the minimum percentage increment at 0.05, and the maximum percentage increment at 0.15. Equations Ai = (C * Bi) + ( (1-C) * Ai-1) Ii = smaller of ( (1 + Ai) * N) and M where, Ai = activity index for the current round (round i) C = activity weight factor Bi = number of bids in the current round (round i) Ai-1 = activity index from previous round (round i-1), A0 is 0 Ii = percentage bid increment for the current round (round i) N = minimum percentage increment M = maximum percentage increment Under the exponential smoothing methodology, once a bid has been received on a license, the minimum acceptable bid for that license in the following round will be the new high bid plus the dollar amount associated with the percentage increment (variable Ii from above times the high bid). This result will be rounded to the nearest thousand if it is over ten thousand or to the nearest hundred if it is under ten thousand. Examples License 1 C=0.5, N = 0.05, M = 0.15 Round 1 (2 new bids, high bid = $1,000,000) 1. Calculation of percentage increment using exponential smoothing: A1 = (0.5 * 2) + (0.5 * 0) = 1 I1 = (1 + 1) * 0.05 = 0.1 2. Minimum bid increment using the percentage increment (I1 from above) 0.1 * $1,000,000 = $100,000 3. Minimum acceptable bid for round 2 = 1,100,000 Round 2 (3 new bids, high bid = 2,000,000) 1. Calculation of percentage increment using exponential smoothing: A2 = (0.5 * 3) + (0.5 * 1) = 2 I2 = (1 + 2) * 0.05 = 0.15 2. Minimum bid increment using the percentage increment (I2 from above) 0.15 * $2,000,000 = $300,000 3. Minimum acceptable bid for round 3 = 2,300,000 Round 3 (1 new bid, high bid = 2,300,000) 1. Calculation of percentage increment using exponential smoothing: A3 = (0.5 * 1) + (0.5 * 2) = 1.5 I3 = (1 + 1.5) * 0.05 = 0.125 2. Minimum bid increment using the percentage increment (I3 from above) 0.125 * $2,300,000 = $287,500 3. Minimum acceptable bid for round 4 = 2,588,000 (4) High Bids Each bid will be date- and time-stamped when it is entered into the computer system. In the event of tie bids, the Commission will identify the high bidder on the basis of the order in which bids are received by the Commission, starting with the earliest bid. The bidding software allows bidders to make multiple submissions in a round. As each bid is individually date and time-stamped according to when it was submitted, bids submitted by a bidder earlier in a round will have an earlier date- and time-stamp than bids submitted later in a round. (5) Bidding During a bidding round, a bidder may submit bids for as many licenses for which it is eligible, as well as withdraw high bids from previous bidding rounds, remove bids placed in the same bidding round, or permanently reduce eligibility. Bidders also have the option of making multiple submissions and withdrawals in each bidding round, and will not have a separate period to withdraw bids. If a bidder submits multiple bids for a single license in the same round, the system takes the last bid entered as that bidder's bid for the round, and the date- and time-stamp of that bid reflect the latest time the bid was submitted. Please note that all bidding will take place either through the automated bidding software or by telephonic bidding. (Telephonic bid assistants are required to use a script when handling bids placed by telephone. Telephonic bidders are therefore reminded to allow sufficient time to bid, by placing their calls well in advance of the close of a round, because four to five minutes are necessary to complete a bid submission.) There will be no on-site bidding during Auction No. 18. A bidder's maximum eligibility in the first round of the auction is determined by two factors: (1) the licenses applied for on FCC Form 175; and (2) the upfront payment amount deposited. The bid submission screens will be tailored for each bidder to include only those licenses for which the bidder applied on its FCC Form 175. A bidder also has the option to further tailor its bid submission screens to call up specified groups of licenses. The bidding software requires each bidder to login to the FCC auction system during the bidding round using the FCC account number, bidder identification number, and the confidential security codes provided in the registration materials. Bidders are strongly encouraged to download and print bid confirmations after they submit their bids. The bid entry screen of the Automated Auction System software for the Phase II 220 MHz Service auction allows bidders to place multiple increment bids which will let bidders increase high bids from one to nine bid increments. A single bid increment is defined as the difference between the standing high bid and the minimum acceptable bid for a license. To place a bid on a license, the bidder must enter a whole number between 1and 9 in the bid increment multiplier (Bid Mult) field. This value will determine the amount of the bid (Amount Bid) by multiplying the bid increment multiplier by the bid increment and adding the result to the high bid amount according to the following formula: Amount Bid = High Bid + (Bid Mult * Bid Increment) Thus, bidders may place a bid that exceeds the standing high bid by between one and nine times the bid increment. For example, to bid the minimum acceptable bid, which is equal to one bid increment, a bidder will enter "1" in the bid increment multiplier column and press submit. For any license on which the FCC is designated as the high bidder (i.e., a license that has not yet received a bid in the auction or where the high bid was withdrawn and a new bid has not yet been placed), bidders will be limited to bidding only the minimum acceptable bid. In both of these cases no increment exists for the licenses, and bidders should enter "1" in the Bid Mult field. Note that any whole number between 1and 9 entered in the multiplier column will result in a bid value at the minimum acceptable bid amount. Finally, bidders are cautioned in entering numbers in the Bid Mult field because, as explained in the following section, a high bidder that withdraws its standing high bid from a previous round, even if mistakenly or erroneously made, is subject to bid withdrawal payments. (6) Bid Removal and Bid Withdrawal In the 220 MHz Public Notice, we proposed bid removal and bid withdrawal rules. With respect to bid withdrawals, we proposed limiting each bidder to withdrawals in no more than two rounds during the course of the auction. The two rounds in which withdrawals are utilized, we proposed, would be at the bidder's discretion. AMTA opposes any limitation on bid withdrawals. The Commission, in the Part 1 proceeding, AMTA notes, did not adopt a limitation on the number of rounds within which a bidder may withdraw bids. AMTA contends that creating an artificial restraint without evidence of need in the 220 MHz Service auction is unnecessary and may be more harmful than beneficial to the auction process. AMTA states that the Commission's current rules which impose financial liability on a bidder that withdraws a high bid adequately address the FCC's objective of preventing improper bidding. a. Procedures Before the close of a bidding round, a bidder has the option of removing any bids placed in that round. By using the remove bid function in the software, a bidder may effectively "unsubmit" any bid placed within that round. A bidder removing a bid placed in the same round is not subject to withdrawal payments. Removing a bid will affect a bidder's activity for the round in which it is removed. This procedure, about which we received no comments, will enhance bidder flexibility and, we believe, may serve to expedite the course of the auction. Therefore, we will adopt these procedures for the 220 MHz Service auction. Once a round closes, a bidder may no longer remove a bid. However, in the next round, a bidder may withdraw standing high bids from previous rounds using the withdraw bid function (assuming that the bidder has not exhausted its withdrawal allowance). A high bidder that withdraws its standing high bid from a previous round is subject to the bid withdrawal payments specified in 47 C.F.R.  90.1007, 1.2104(g), and 1.2109. The procedure for withdrawing a bid and receiving a withdrawal confirmation is essentially the same as the bidding procedure described in "High Bids," Part 4.B.2.c.(4). We agree with AMTA that the Commission has not mandated the use of bid withdrawals to two rounds of the auction, but instead delegated to us the discretion to decide whether this change was warranted. In previous auctions, we have detected bidder conduct that, arguably, may have constituted strategic bidding through the use of bid withdrawals. While we continue to recognize the important role that bid withdrawals play in an auction, i.e., reducing risk associated with efforts to secure various geographic area licenses in combination, we conclude that, for the 220 MHz Service auction, adoption of a limit on their use to two rounds is the most appropriate outcome. By doing so we believe we strike a reasonable compromise that will allow bidders to use withdrawals. Our decision on this issue is based upon our experience in prior auctions, particularly the PCS D, E and F block auction, 800 MHz SMR auction, and LMDS auction, and is in no way a reflection of our view regarding the likelihood of any speculation or "gaming" in the 220 MHz Service auction. The Bureau will therefore limit the number of rounds in which bidders may place withdrawals to two rounds. These rounds will be at the bidder's discretion and there will be no limit on the number of bids that may be withdrawn in either of these rounds. Withdrawals will still be subject to the bid withdrawal payments specified in 47 C.F.R.  90.1007, 1.2104(g), and 1.2109. Bidders should note that abuse of the Commission's bid withdrawal procedures could result in the denial of the ability to bid on a market. If a high bid is withdrawn, the license will be offered in the next round at the second highest bid price, which may be less than, or equal to, in the case of tie bids, the amount of the withdrawn bid, without any bid increment. The FCC will serve as a "place holder" on the license until a new acceptable bid is submitted on that license. b. Calculation Generally, a bidder that withdraws a standing high bid during the course of an auction will be subject to a payment equal to the lower of: (1) the difference between the net withdrawn bid and the subsequent net winning bid; or (2) the difference between the gross withdrawn bid and the subsequent gross winning bid for that license. See 47 C.F.R.  90.1007, 1.2104(g), and 1.2109. No withdrawal payment will be assessed if the subsequent winning bid exceeds the withdrawn bid. (7) Round Results The bids placed during a round are not published until the conclusion of that bidding period. After a round closes, the FCC will compile reports of all bids placed, bids withdrawn, current high bids, new minimum accepted bids, and bidder eligibility status (bidding eligibility and activity rule waivers), and post the reports for public access. Reports reflecting bidders' identities and bidder identification numbers for Auction No. 18 will be available before and during the auction. Thus, bidders will know in advance of this auction the identities of the bidders against which they are bidding. (8) Auction Announcements The FCC will use auction announcements to announce items such as schedule changes and stage transitions. All FCC auction announcements will be available on the FCC remote electronic bidding system, as well as the Internet and the FCC Bulletin Board System. (9) Other Matters As noted in 3.B., after the short-form filing deadline, applicants may make only minor changes to their FCC Form 175 applications. For example, permissible minor changes include deletion and addition of authorized bidders (to a maximum of three) and revision of exhibits. Filers should make these changes on-line, and submit a letter to Amy Zoslov, Chief, Auctions and Industry Analysis Division, Wireless Telecommunications Bureau, Federal Communications Commission, 2025 M Street, N.W., Room 5202, Washington, D.C. 20554 (and mail a separate copy to Frank Stilwell, Auctions and Industry Analysis Division), briefly summarizing the changes. Questions about other changes should be directed to Frank Stilwell of the FCC Auctions and Industry Analysis Division at (202) 418-0660. 5. POST-AUCTION PROCEDURES A. Down Payments and Withdrawn Bid Payments After bidding has ended, the Commission will issue a public notice declaring the auction closed, identifying the winning bids and bidders for each license, and listing withdrawn bid payments due. Within ten business days after release of the auction closing notice, each winning bidder must submit sufficient funds (in addition to its upfront payment) to bring its total amount of money on deposit with the Government to 20 percent of its net winning bids (actual bids less any applicable bidding credits). See 47 C.F.R.  90.1011(b). In addition, by the same deadline all bidders must pay any withdrawn bid amounts due under 47 C.F.R.  1.2104(g), as discussed in "Bid Removal and Bid Withdrawal," Part 4.B.2.c.(6). (Upfront payments are applied first to satisfy any withdrawn bid liability, before being applied toward down payments.) B. Long-Form Application Within ten business days after release of the auction closing notice, winning bidders must submit a properly completed long-form application and required exhibits for each Phase II 220 MHz Service license won through the auction. Winning bidders that are small businesses or very small businesses must include an exhibit demonstrating their eligibility for bidding credits. See 47 C.F.R.  90.1013. Further filing instructions will be provided to auction winners at the close of the auction. C. Default and Disqualification Any high bidder that defaults or is disqualified after the close of the auction (i.e., fails to remit the required down payment within the prescribed period of time, fails to submit a timely long-form application, fails to make full payment, or is otherwise disqualified) will be subject to the payments described in 47 C.F.R.  1.2104(g)(2). In such event the Commission may re-auction the license or offer it to the next highest bidders (in descending order) at their final bids. See 47 C.F.R.  1.2109(b) and (c). In addition, if a default or disqualification involves gross misconduct, misrepresentation, or bad faith by an applicant, the Commission may declare the applicant and its principals ineligible to bid in future auctions, and may take any other action that it deems necessary, including institution of proceedings to revoke any existing licenses held by the applicant. See 47 C.F.R.  1.2109(d). D. Refund of Remaining Upfront Payment Balance All applicants that submitted upfront payments but were not winning bidders for any Phase II 220 MHz Service license may be entitled to a refund of their remaining upfront payment balance after the conclusion of the auction. No refund will be made unless there are excess funds on deposit from that applicant after any applicable bid withdrawal payments have been paid. Bidders that drop out of the auction completely may be eligible for a refund of their upfront payments before the close of the auction. However, bidders that reduce their eligibility and remain in the auction are not eligible for partial refunds of upfront payments until the close of the auction. Qualified bidders that have exhausted all of their activity rule waivers, have no remaining bidding eligibility, and have not withdrawn a high bid during the auction must submit a written refund request which includes wire transfer instructions, a Taxpayer Identification Number ("TIN"), and a copy of their bidding eligibility screen print, to: Federal Communications Commission Billings and Collections Branch Attn: Regina Dorsey or Linwood Jenkins 1919 M Street, N.W., Room 452 Washington, D.C. 20554 Bidders can also fax their request to the Billings and Collections Branch at (202) 418-2843. Once the request has been approved, a refund will be sent to the address provided on the FCC Form 159. NOTE: Refund processing generally takes up to two weeks to complete. Bidders with questions about refunds should contact Linwood Jenkins or Geoffrey Idika at (202) 418-1995. Media Contact: Meribeth McCarrick at (202) 418-0654 Commercial Wireless Division: Scott A. Mackoul at (202) 418-7240 Auctions and Industry Analysis Division: Lisa Hartigan, Operations; Bob Reagle, Auctions Analysis; and Frank Stilwell, Legal at (202) 418-0660 Policy Division: Marty Liebman at (202) 418-1310 - FCC - ATTACHMENT A SUMMARY OF PHASE II 220 MHZ LICENSES TO BE AUCTIONED ATTACHMENT B LIST OF CASES PENDING BEFORE THE COMMISSION INVOLVING NON-NATIONWIDE PHASE I 220 MHZ LICENSEES ATTACHMENT C GUIDELINES FOR COMPLETION OF FCC FORMS 175 AND 159, AND EXHIBITS A. FCC Form 175 Because of the significance of the FCC Form 175 application to the auction, bidders should especially note the following: Paper form version: Manual filers must use the May 1998 edition of the FCC Form 175 and the October 1995 edition of the 175-S (if applicable). Earlier versions of the FCC Form 175 will not be accepted. Copies of the FCC Form 175 can be obtained by calling the Commission's Forms Distribution Center at (800) 418-3676 (outside Washington, D.C.) or (202) 418-3676 (in the Washington area). Copies of the FCC Form 175 can also be obtained via Fax-On-Demand at (202) 418-0177. If applicants have any questions concerning availability of the FCC Form 175, they should call the FCC Records Management Branch at (202) 418-0210. Items 2-5: Give a street address (not a Post Office box number) for the applicant, suitable for mail or private parcel delivery. The FCC will send all registration materials and other written communications to the applicant at this address. Item 6: The 220 MHz auction will be the eighteenth auction conducted by the FCC. For "Auction No." in item 6 of the FCC Form 175, enter "18." Item 7: Applicants must enter their nine-digit Taxpayer Identification Number (TIN). The taxpayer identification number will be your Employer Identification Number (EIN) or Social Security Number (SSN) as reported to the Internal Revenue Service. Each applicant must include this same TIN when submitting amendments, additional information, or other correspondence or inquiries regarding its application, and must include this same number on each FCC Form 159 (FCC Remittance Advice Form) accompanying required auction deposits or payments. With the exception of the TIN, any information provided on this form will be available for public inspection. Item 8: Applicants must indicate their legal classification. The May 1998 version of FCC Form 175 requires the applicant to classify itself as an individual, joint venture, partnership, trust, corporation, consortium, association, limited liability company (LLC) or government entity. Items 10: Applicants are also requested to indicate their status as a rural telephone company, minority-owned business and/or women-owned business, so that the FCC can monitor its performance in promoting economic opportunities for these designated entities. Be advised that this is the sole opportunity applicants have to elect small business status and bidding credit level (if applicable), and there is no opportunity to change the election once the short-form filing deadline passes. þ Very small business or small business applicants should enter the applicable bidding credit in Item 10. Applicants should be aware that this is the sole opportunity that they will have to elect the appropriate bidding credit. Item 11: For each license on which they seek bidding eligibility, applicants must identify the market number in the Market No. column, and the frequency block or blocks in the Frequency Block/Channel No. set of columns. The market number for each EA, EAG or Nationwide license is listed in Attachment A. Applicants that wish to bid on all licenses in a given frequency block or blocks should check the "ALL" box in the Market No. column and list the frequency block or blocks desired in the Frequency Block/Channel No. headings. If filing manually, the FCC Form 175 provides space to list only five markets, and applicants should use one or more FCC Forms 175-S to list any additional markets. Applicants should identify in Item 11 all licenses on which they want to be eligible to bid in the auction. Be advised that there is no opportunity to change this list once the short-form filing deadline passes. The FCC auction system will not accept bids on licenses for which an applicant has not applied on its FCC Form 175. Item 12: Applicants must list the name(s) of the person(s) (no more than three) authorized to represent them at the auction. Only those individuals listed on the FCC Form 175 will be authorized to place or withdraw bids for the applicant during the auction. Certifications: Applicants should carefully read the list of certifications on the FCC Form 175. These certifications help to ensure a fair and competitive auction and require, among other things, disclosure to the Commission of certain information on applicant ownership and agreements or arrangements concerning the auction. Submission of an FCC Form 175 application constitutes a representation by the certifying official that he or she is an authorized representative of the applicant, has read the form's instructions and certifications, and that the contents of the application and its attachments are true and correct. Submission of a false certification to the Commission may result in penalties, including monetary forfeitures, license forfeitures, ineligibility to participate in future auctions, and/or criminal prosecution. Contact person: If the Commission wishes to communicate with the applicant by telephone or fax, those communications will be directed to the contact person identified on the FCC Form 175. Space is provided for a telephone number, fax number, and e-mail address. All written communication and registration information will be directed to the applicant's contact person at the address specified on the FCC Form 175. Applicants must provide a street address; no P.O. Box addresses may be used. Signature: Manually filed FCC Forms 175 must bear an original signature. Absence of an original signature will result in dismissal of the application and disqualification of the applicant from participating in the auction. (Applicants filing electronically should type the name of the certifying official in the Name of Person Certifying block.) Paper or Diskette Copies: For this auction the FCC will accept, in lieu of paper copies, a 3.5-inch diskette which contains files of all exhibit documentation attached to the FCC Form 175. Applicants may use a variety of file formats including Word, Word Perfect, Excel, Lotus, and ASCII text and should verify that the files contain all exhibit information. Completeness: Applicants must submit all information required by the FCC Form 175 and by applicable rules, including a certifying signature on manual filings. Failure to submit required information by the resubmission date will result in dismissal of the application and inability to participate in the auction. See 47 C.F.R.  1.2105(b). Continuing Accuracy: Each applicant is responsible for the continuing accuracy and completeness of information furnished in the FCC Form 175 and its exhibits. See 47 C.F.R.  1.65. It is the FCC's position that during the conduct of an auction, ten business days from a reportable change is a reasonable period of time. Applicants are reminded that Certification 6 on the FCC Form 175 includes consent to be audited. B. Exhibits and Attachments In addition to the FCC Form 175 itself, applicants must submit additional information required by the FCC's rules. Although the FCC does not require a particular format for this information, it has developed the following guidelines that will facilitate the processing of short-form applications. The FCC encourages applicants filing both electronically and manually to submit this information using the following format. Exhibit A -- Applicant Identity and Ownership Information: 47 C.F.R.  1.2105(a)(2)(ii) requires each applicant to fully disclose the real party or parties-in-interest in an exhibit to its FCC Form 175 application. The information should provide the name, citizenship, and address of all partners, if the applicant is a partnership; of a responsible officer or director, if the applicant is a corporation; of the trustee, if the applicant is a trust; or, if the applicant is none of the foregoing, of a principal or other responsible person. Exhibit B -- Agreements with Other Parties/Joint Bidding Arrangements: Applicants must attach an exhibit identifying all parties with which they have entered into any agreements, arrangements or understandings which relate in any way to the licenses being auctioned, including any relating to the post-auction market structure. See 47 C.F.R.  1.2105(a)(2)(viii). Be aware that pursuant to Certification (4) on the FCC Form 175, the applicant certifies that it will not enter into any explicit or implicit agreements or understandings of any kind with parties not identified in the application regarding bid amounts, bidding strategies, or the particular licenses the applicant will or will not bid. See 47 C.F.R.  1.2105(a)(2)(ix). To prevent collusion, the Commission's Rules generally prohibit communication among applicants for the same license areas between the initial short-form applications filing deadline and the down payment on licenses won, when such communications concern bids, bidding strategies, or settlements. 47 C.F.R.  1.2105(c). Exhibit C -- Status as a Very Small Business or Small Business: Applicants claiming status as a very small business or small business must attach an exhibit regarding this status. þ Very small business or small business applicants must set forth the average gross revenues for the preceding three years for the applicant (including affiliates and controlling principals), as prescribed by 47 C.F.R.  90.1017 and 1.2112. Certification that the average gross revenues for the preceding three years do not exceed the required limit is insufficient. Exhibit D -- Information Requested of Designated Entities: Applicants owned by minorities or women, as defined in 47 C.F.R.  1.2110(b), or that are rural telephone companies, may attach an exhibit regarding this status. This information, in conjunction with the information in Item 10, will assist the Commission in monitoring the participation of these "designated entities" in its auctions. Exhibit E -- Miscellaneous Information: Applicants wishing to submit additional information should include it in Exhibit E. Applicants are reminded that all information required in connection with applications to participate in spectrum auctions is necessary to determine the applicants' qualifications, and as such will be available for public inspection. Required proprietary information may be redacted, or confidentiality may be requested, following the procedures set forth in 47 C.F.R.  0.459. Such requests must be submitted in writing to Amy Zoslov, Chief, Auctions and Industry Analysis Division, Wireless Telecommunications Bureau, Federal Communications Commission, 2025 M Street, N.W., Room 5202, Washington, D.C. 20554 (with a separate copy mailed to Frank Stilwell, Auctions and Industry Analysis Division), in which case the applicant must indicate in Exhibit E that it has filed a confidentiality request. Because the required information bears on applicants' qualifications, the FCC envisions that confidentiality requests will not be routinely granted. Waivers: Applicants requesting waiver of any rules must submit a statement of reasons sufficient to justify the waiver sought. AUCTION-SPECIFIC INSTRUCTIONS FCC REMITTANCE ADVICE, FCC FORM 159 UPFRONT PAYMENTS The following information supplements the standard instructions for FCC Form 159, and is provided to help ensure correct completion of FCC Form 159 for upfront payments for 220 MHz Service auction (Auction No. 18). Applicants need to complete FCC Form 159 carefully, since: þ Mistakes may affect their bidding eligibility; and þ Lack of consistency between information set forth in FCC Form 159, FCC Form 175, long-form application, and correspondence about an application may cause processing delays. Therefore appropriate cross-references between the FCC Form 159 Remittance Advice and the FCC Form 175 Short Form Application are described below. Block Number Required Information 1 LOCKBOX # - Enter "358430" 2 Payer Name - Enter the name of the person or company making the payment. If the applicant itself is the payer, this entry would be the same as FCC Form 175, block 1 of the FCC Form 175. 3 Total Amount Paid Enter the amount of the upfront payment associated with the FCC Form 159. 4-8 Street Address, City, State, ZIP Code Enter the street mailing address (not Post Office box number) where mail should be sent to the payer. If the applicant is the payer, these entries would be the same as FCC Form 175, blocks 2 through 5. 9 Daytime Telephone Number Enter the telephone number of a person knowledgeable about this upfront payment. 10 Country Code For addresses outside the United States, enter the appropriate postal country code (available from the Mailing Requirements Department of the U.S. Postal Service). 20A Payment Type Code Enter "A22U" 21A Quantity Enter the number "1" 22A Amount Due Enter the total upfront payment due. 23A FCC Code 1 Enter the number "18" (indicating Auction No. 18). 26 Applicant TIN - Same as FCC Form 175, block 7. NOTES: þ Do not use Remittance Advice (Continuation Sheet), FCC Form 159-C, for upfront payments. þ If applicant is different from the payer, complete blocks 11 through 18 for the applicant, using the same information shown on FCC Form 175. Otherwise leave them blank. þ Since credit card payments will not be accepted for this auction, leave this area blank. AUCTION-SPECIFIC INSTRUCTIONS FCC REMITTANCE ADVICE, FCC FORM 159 DOWN PAYMENTS AND FINAL PAYMENTS Specific information regarding down payments and final payments will be included in a post-auction Public Notice announcing the winning bidders. ATTACHMENT D Electronic Filing and Review of FCC Form 175 The Commission has implemented a remote access system to allow applicants to submit their FCC Form 175 applications electronically. The remote access system for initial filing of the FCC Form 175 applications will generally be available 24 hours per day. FCC Form 175 applications that are filed electronically using this remote access system must be submitted and confirmed by 5:30 p.m. ET on August 17, 1998. Late applications or unconfirmed submissions of electronic data will not be accepted. The electronic filing process consists of an initial filing period and a resubmission period to make minor corrections. Applicants that wish to file their FCC Form 175 electronically or review other FCC Form 175 applications on-line will need to meet the following minimum hardware and software requirements: Minimum Hardware Requirements o CPU: Intel Pentium o RAM: 16 MB o Modem: v.32bis 14.4kbps Hayes compatible modem or faster o Monitor: VGA or above o Mouse or other pointing device For applicants using Microsoft Windows 3.1x: o Hard Disk: 10 MB available disk space to install the FCC Auctions PPP Dialer Minimum Software Requirements o Operating System: Microsoft Windows 95 or Microsoft Windows 3.1x (but not Microsoft Windows 98) o PPP Dialer For Windows 95 Use the Dial-Up Networking feature included with Windows 95 For Windows 3.1x Use the FCC Auctions PPP Dialer available for download on the FCC Internet Site and the FCC Bulletin Board System o Web Browser: Netscape Navigator 3.01 or higher, or Microsoft Internet Explorer 3.02 with the file-upload add-on or higher Note: If you are running Windows in a networked environment, check with your local network administrator for any potential conflicts with the FCC Auctions PPP Dialer. This usually includes any TCP/IP installed network protocol. Connecting to the FCC Network To file or review applications electronically, you must first connect to the FCC Network using a PPP (Point-to-Point Protocol) Dialer. The following PPP Dialer options are available: For Windows 95 Use the Dial-Up Networking feature included with Windows 95 For Windows 3.1x Use the FCC Auctions PPP Dialer available for download on the FCC's Internet Site or FCC Auction Bulletin Board System Parties interested in filing FCC Form 175 applications electronically will connect to a toll-free 800 number telephone service. Similarly, parties interested in reviewing FCC Form 175 applications electronically will connect to a 900 number telephone service at a charge of $2.30 per minute. The first minute of connection time to the 900 number service will be at no charge. The PPP Dialer will establish a point-to-point connection from your PC to the FCC Network. This point-to-point connection is not routed through the Internet. For instructions regarding how to connect to the FCC Network using Dial-Up Networking in Windows 95, see the Accessing the FCC Network Using Windows 95 section. For instructions regarding how to connect to the FCC Network with the FCC Auctions PPP Dialer in Microsoft Windows 3.1x, see the Accessing the FCC Network Using Windows 3.1x section. Submitting or Reviewing FCC Form 175 Applications After you have connected to the FCC Network, start your Web browser. In your browser's Location field (Netscape 3.x), Netsite field (Netscape 4.x), or Address field (Internet Explorer), enter the appropriate Universal Resource Locator (URL) as follows: For Form 175 Submit, type http://wtbwww04.fcc.gov, press the Enter key, and click Form 175 Submit For Form 175 Review, type http://wtbwww03.fcc.gov, press the Enter key, and click Form 175 Review When you have finished, exit the Web browser, then disconnect from the FCC Network. Help For technical assistance with installing or using FCC software, contact the FCC Technical Support Hotline at (202) 414-1250 (V) or (202) 414-1255 (TTY). The FCC Technical Support Hotline is generally available Monday through Friday, from 8 a.m. to 6 p.m. ET. In addition, it will be available from 9 a.m. to 5 p.m. ET, the weekend of August 15-16, 1998. All calls to the FCC Technical Support Hotline are recorded. Accessing the FCC Network Using Windows 3.1x This attachment describes how to access the FCC Network from a system that is running the Microsoft Windows 3.1x operating system. This involves using the FCC-supplied Point-to-Point Protocol (PPP) Dialer. This attachment summarizes the hardware and software required for the PPP Dialer, then describes the procedures for performing the following tasks: Downloading the Dialer files from the Internet or the FCC Bulletin Board System Installing the Dialer application Configuring PPP Establishing a PPP connection This section also describes how to troubleshoot and uninstall the PPP Dialer application, and tells how to get help from the FCC. Conventions The instructions in this section use the following typographical conventions: bold Represents objects on the screen that you click with the mouse pointer, including buttons, Internet links, icons, tabs, menu items (e.g., Cancel button, Auctions link, Save option in the File menu). italic Represents field names or areas of a screen (e.g., Applicant field, Selected Licenses area of a screen). bold italic Represents characters that you must type exactly as they appear in the instructions. For example, if you are instructed to type http://wtbwww03.fcc.gov, you should type all of the characters shown in bold italic exactly as they are printed. Small Caps Represents keys on the keyboard (e.g., Enter, Ctrl, Esc). Downloading the Dialer Software Applicants using Microsoft Windows 3.1x should download the FCC Auctions PPP Dialer software from either the FCC Internet Site or the FCC Bulletin Board System. Applicants must download the following files to install the software: setup.exe, setup.001, setup.002. Download Method 1: Internet Access You may use your Web browser to download the software from wtbwww01.fcc.gov or www.fcc.gov as described in the following section. Downloading from wtbwww01.fcc.gov: 1. Connect to your Internet service provider and start your Web browser. 2. In the Location field (Netscape 3.x), Netsite field (Netscape 4.x), or Address field (Internet Explorer) of the web browser screen, type the following location: http://wtbwww01.fcc.gov. Then press the Enter key. 3. a. Click on Dialer. b. Click on Auctions. 4. Download the following files by clicking each of the corresponding icons: setup.exe, setup.001, setup.002 Downloading from www.fcc.gov: 1. Connect to your Internet service provider and start your Web browser. 2. In the Location field (Netscape 3.x), Netsite field (Netscape 4.x), or Address field (Internet Explorer) of the web browser screen, type the following location: http://www.fcc.gov. Then press the Enter key. 3. a. Click on Auctions. b. In the Auctions section on the right, click on 220 MHz under Future. c. Click on FCC Auctions PPP Dialer. 4. Download the following files by clicking each of the corresponding icons: setup.exe, setup.001, setup.002 Download Method 2: Dial-In Access to the FCC Auction Bulletin Board System (BBS) The FCC Auction Bulletin Board System (BBS) provides dial-in access for the FCC Auctions PPP Dialer Software. To access the FCC Auction BBS, use a communications package that can handle at least Xmodem protocol (such as Microsoft HyperTerminal in Windows 95, PcAnyWhere, or Procomm) to dial in to (202) 682-5851. Use the settings of 8 data bits, no parity and 1 stop bit (8,N,1). Note: Throughout these instructions, "enter" means to type the appropriate information and then press the Enter key. Once your computer is connected to the Auction BBS, do the following: 1. To create an account: a. Enter your first name. b. Enter your last name. c. When asked whether you want to create an account, enter Y. d. When prompted, enter a password. The password can be from four to ten characters long, where the characters can be either letters or numbers. e. To confirm the password, enter it again. f. When prompted for contact information, enter your voice phone number. Include the area code; for example, you might enter 202-555-1234. g. Enter your company name. 2. On the Welcome screen, enter C for Continue. (You may also enter c, the program accepts either case.) Since C is the default (automatic) selection, you can also just press Enter to continue. 3. When asked whether you want to view the bulletin menu. Enter Y for Yes. Then, to continue, press Enter to obtain the FCC Auction BBS Main Menu. 4. Enter A (for Auction Menu) to obtain the Auction Library Menu. The top options on this menu provide a range of numbers to represent the available auctions. 5. To select Dialer, enter D. 6. Enter A to select Auctions Dialer. The list of available files appears. These files are sorted by date, with the most recent files at the beginning of the list. 7. To scroll downward to the next screen of file names, either press Enter or enter C for Continue. To scroll upward to the preceding screen of file names, enter P for Previous. Note that on each screen, file names are numbered separately, starting with 1. 8. To select one or more files for downloading or viewing, mark the files you want. The program marks a file by preceding its name with an asterisk (*). You can do the following: To mark an individual file, enter its line number. To mark a range of files, enter M (for Mark) and then enter the range of files in response to the prompt. For example, to mark files 6 through 12, enter 6-12 at the prompt. To unmark a file, enter its number again. You can also use Mark to unmark a range of files. Use any of these techniques to mark the following files: setup.exe, setup.001, setup.002 9. When you have finished marking files, download them as follows: a. Enter D for Download. The program displays a list that summarizes the download operation. The Time column lists the download time for each file; the Total Time column lists a running total of the download times. b. Enter D to proceed. c. Select the file transfer protocol that has been specified in your terminal emulation software (e.g., Xmodem or Zmodem). When the download operation has finished, the list of files reappears. 10. Enter X to leave the BBS. Installing the FCC Auctions PPP Dialer After you have downloaded the files, you must install the FCC Auctions PPP Dialer. To install the software, start File Manager, open the file folder where you downloaded the files and double-click on setup.exe. All downloaded files must be present in the file folder for the software to install properly. To begin, the setup program shows a screen listing the default directory to which the software will install. Press the Install button, then press OK to install to the specified directory. If the directory does not exist, the setup program will create it automatically. When the installation is complete, a message may appear asking you to restart Windows so that the changes made by the installation may take effect. Press Restart to restart Windows or press Stay Here to restart at a later time. Do not use the FCC Auctions PPP Dialer until you have restarted Windows. You will now have a new Program Manager group called FCC Auctions Dialer with icons labeled Configure PPP, PPP Dialer, and Uninstall. Creating Backup Installation Disks for the FCC Auctions PPP Dialer To create backup installation disks for the FCC Auctions PPP Dialer, you will need three blank formatted 1.44" disks. Copy setup.exe to the first disk, setup.001 to the second disk, and setup.002 to the third disk. Running the Configure PPP Program Before establishing a PPP connection, you must run the Configure PPP program. If desired, you may also adjust the configuration settings. To start the Configure PPP program: 1. Double-click the Configure PPP icon. The communications setup window appears. 2. From the Modem menu, select the COM port to which your modem is connected. 3. From the Speed menu, select the maximum DTE rate of your modem. For 14.4-kbps and 28.8-kbps modems, you can generally select a speed of 38400 or 57600. 4. In most cases, carrier detect should not be checked and flow control should be checked. If you experience problems getting the modem to respond, experimenting with these settings may help. 5. The DNS should be set to 165.135.22.249. The remainder of the screen has default values which should provide optimal performance. 6. Click the Script button to bring up the Script Setup screen. This screen gives you the ability to issue specific commands to the modem. 7. Click the down arrow in the Selected Modem field and choose the entry from the list that most closely matches the modem installed on your PC. If your modem does not appear in the list, select a generic modem string by entering either ATZ (for 14.4-kbps modems) or AT&F (for 28.8-kbps modems) in the Reset Modem String box. 8. It may be necessary to change the command in the Modem Dial Prefix field to accommodate how you make calls. For example: Add a 1 before dialing the 800 or 900 number: ATDT1 Dialing prefix of 9 used, add a 1 before dialing the 800 or 900 number: ATDT91 Turn off call waiting, add a 1 before dialing the 800 or 900 number: ATDT*70,1 9. If you use a dialing suffix, enter it in the Dial Suffix field. 10. The default settings provided in Configure PPP should be compatible with most systems. If you experience problems connecting to the FCC Network, refer to the Troubleshooting section for possible solutions. 11. When you have finished using the Configure PPP program, click the OK button. You may now start the FCC Auctions PPP Dialer. Establishing a PPP Connection Once you have run the Configure PPP program, you can establish a PPP connection. Do the following: 1. To start the PPP Dialer, double-click the PPP Dialer icon in the FCC Auctions Dialer program group. 2. Select Non-Toll (800 service) if you want to submit an FCC Form 175 application, or select Toll call (900 service) if you want to review FCC Form 175 applications or use the FCC Remote Access System. 3. When the PPP Dialer establishes a connection, you will gain access to the PPP Dial Up screen. You may switch to the PPP Dial Up screen by pressing Ctrl+Esc and double-clicking PPP Dial Up in the Task List. The screen will display the current status of the PPP connection. 4. Once the connection is established, open your Web browser (Netscape or Internet Explorer). 5. In your browser's Location field (Netscape 3.x), Netsite field (Netscape 4.x), or Address field (Internet Explorer), enter the appropriate Universal Resource Locator (URL) as follows: For FCC Form 175 Submit, type http://wtbwww04.fcc.gov and press the Enter key. For FCC Form 175 Review or the FCC Remote Access System, type http://wtbwww03.fcc.gov and press the Enter key. 6. When you have finished, exit the Web browser, then switch to the PPP Dial Up screen and select the Disconnect option from the Dial menu. Testing the PPP Connection 1. To test the status of the PPP connection, select the Test Connection option from the Dial menu on the PPP Dial Up screen. This option allows you to ping the FCC Network. The ping process sends a signal to the FCC Network; if the signal returns, you have established a good connection. The Hostname box will show 165.135.22.249. 2. From the Number menu, choose the number of pings you wish to send (one, continuous, or a user-specified number). From the Specifications menu, you can customize the type of request (e.g., icmp echo request), the interval between pings, and the timeout setting; the default settings should suffice. If you change any of the settings and would like to save them, select the Save option from the File menu. 3. Click the Start button. The status and packets boxes will display information concerning whether the pings were returned. 4. If necessary, click the Stop button, to end the ping process. Click the Exit button to exit the Ping program. Troubleshooting Following are problems you may encounter and possible solutions for resolving or isolating them. Modem does not respond 1. Check the COM port setting. 2. Make sure that you have selected the appropriate modem in the Selected Modem list. If your modem does not appear in the list, select a generic modem string by entering either ATZ (for 14.4-kbps modems) or AT&F (for 28.8-kbps modems) in the Reset Modem String field. 3. Check your modem for IRQ conflicts. 4. Check the physical connections. Modem connects but does not return an IP address 1. Check that you have selected the appropriate modem in the Selected Modem list. 2. Verify the DNS is set to 165.135.22.249. 3. Turn off VJ Compression. 4. Check your modem for IRQ conflicts. 5. Unload network drivers. SQLSERVER errors 1. Turn off VJ Compression. 2. Unload network drivers. 3. Check for the existence of multiple winsock.dll files on your PC. 4. Test the PPP connection with the Ping program. Errors may be caused by having multiple winsock.dll files on your PC. To search for conflicting winsock.dll files, start File Manager, open the directory for the root of the hard drive you want to search (usually c:\) and select the Search option from the File menu. In the search for: box, enter winsock.dll. Verify that the select all subdirectories option is selected, then click OK. Make sure that any other winsock files are not in your path. To check this, go to the DOS prompt and type path. If any directory containing another winsock.dll file appears in the path, do either of the following: Temporarily rename the conflicting winsock. Edit the autoexec.bat file to remove the reference to that directory, then save and reboot the PC. If you need to use the other PPP software package, reinsert the appropriate directory reference, save, and reboot. Uninstalling the FCC Auctions PPP Dialer Application To uninstall the FCC Auctions PPP Dialer, double-click the Uninstall icon in the FCC Auctions Dialer program group. Click Start to uninstall the software. Technical Support For technical assistance in installing or using the FCC Auctions PPP Dialer, contact the FCC Technical Support Hotline. The hotline is generally available Monday through Friday, from 8 a.m. to 6 p.m. ET, at (202) 414-1250 (V) or (202) 414-1255 (TTY). Hours of service the weekend of August 15-16 will be 9 a.m. - 5 p.m. ET. All calls to the FCC Technical Support Hotline are recorded. Accessing the FCC Network Using Windows 95 This attachment describes how to access the FCC Network from a system that is running the Microsoft Windows 95 operating system. This involves configuring dial-up network access and then performing the dial-up procedure. Conventions The instructions in this section use the following typographical conventions: bold Represents objects on the screen that you click with the mouse pointer, including buttons, Internet links, icons, tabs, menu items (e.g., Cancel button, Auctions link, Save option in the File menu). italic Represents field names or areas of a screen (e.g., Applicant field, Selected Licenses area of a screen). bold italic Represents characters that you must type exactly as they appear in the instructions. For example, if you are instructed to type http://wtbwww03.fcc.gov, you should type all of the characters shown in bold italic exactly as they are printed. Small Caps Represents keys on the keyboard (e.g., Enter, Ctrl, Esc). Configuring Dial-Up Network Access 1. To start dial-up networking: a. Click the Windows 95 Start button. b. Click the Programs option to display the Programs menu. c. Click the Accessories option to display the Accessories menu. d. From the Accessories menu, click Dial-Up Networking. If Dial-Up Networking is not an option on your Accessories menu, you should install it from your Windows 95 CD or diskettes. 2. When the Dial-Up Networking window appears, double-click the Make New Connection icon. 3. The Make New Connection window appears. In the field titled Type a name for the computer you are dialing, type FCC Auctions 800# or FCC Auctions 900#. 4. Click the down arrow at the right of the Select a modem field and select your modem from the menu of available modems. If your modem does not appear on this list, you must install your modem driver according to the modem manufacturer installation procedures, which are usually described in your modem's user manual. 5. Click the Next button. 6. If you are connecting to file FCC Form 175 applications, type 800 and 378-7435 in the Area Code and Telephone Number fields, respectively. If you are connecting to review FCC Form 175 applications or to use the FCC Remote Access System, type 900 and 555-5335 in the Area Code and Telephone Number fields, respectively. 7. Verify that the correct country is selected in the Country code field. If necessary, click the down arrow at the right of the Country code field and select the appropriate country from the menu of available countries. 8. Click the Next button. 9. Click the Finish button. An icon labeled either FCC Auctions 800# or FCC Auctions 900# appears in the Dial-Up Networking window. 10. Verify that properties are configured correctly before attempting a dial-up session. Put the mouse pointer on the appropriate Form 175 icon and click the right mouse button to display a menu. Click Properties from the menu. 11. Click the Configure button. Click the Options tab at the top of the Properties window. 12. In the Connection control area of the Options tab, verify that neither option is selected. If either option is selected, click the check box at the left of the option to deselect it. Then click OK. 13. Click the Server Types button. 14. In the Advanced Options area, verify that only Enable software compression is selected. If it is not selected, click the check box at the left of the option to select it. If either of the other options is selected, click the check box to deselect it. 15. In the Allowed Network Protocols area, verify that only TCP/IP is selected. If it is not selected, click the check box at the left of the option to select it. If either of the other options is selected, click the check box to deselect it. 16. Click the TCP/IP Settings button and select Specify name server addresses. 17. Type 165.135.22.249 as the Primary DNS. 18. Click OK on the TCP/IP Settings window, the Server Type window, and the Properties window. Dial-Up Procedure 1. If the Dial-Up Networking window is not currently open, do the following: a. Click the Windows 95 Start button. b. Click the Programs option to display the Programs menu. c. Click the Accessories option to display the Accessories menu. d. From the Accessories menu, click Dial-Up Networking. The Dial-Up Networking window appears. 2. In the Dial-Up Networking window, double-click the FCC Auctions 800# or FCC Auctions 900# icon. Note: If you connect to the FCC's 900 number telephone service, there is a charge of $2.30 per minute. The first minute of connection time to the 900 number service is at no charge. 3. Click the Connect button on the window. Do not enter User name and Password. The Connection window appears, indicating the status of your connection as your modem dials into the system. This window must remain running during your dial-up session. You may minimize the window, if you wish. 4. Once the connection is established, open your Web browser (Netscape or Internet Explorer). 5. In your browser's Location field (Netscape 3.x), Netsite field (Netscape 4.x), or Address field (Internet Explorer), enter the appropriate Universal Resource Locator (URL) as follows: For FCC Form 175 Submit, type http://wtbwww04.fcc.gov and press the Enter key. For FCC Form 175 Review or the FCC Remote Access System, type http://wtbwww03.fcc.gov and press the Enter key. 6. When you have finished, exit the Web browser, then click the Disconnect button on the Connection window to end your dial-up session. Troubleshooting Following are problems you may encounter and possible solutions for resolving or isolating them. Modem does not respond 1. Confirm that the correct modem driver is installed for your modem. 2. Confirm that all physical connections for the modem are present. 3. Confirm that the phone line is active by connecting the modem chord to a telephone. 4. If you are dialing the 900 number service, check for a 900 number telephone block. If the volume settings are low, the modem may be dialing but not connecting. Check for this by trying to connect to the 800 number, or by dialing the 900 number on that line using a telephone. Modem dials but does not connect 1. If you are dialing the 900 number service, check for a 900 number telephone block. Check for this by dialing the 800 number to see if you connect, or by dialing the 900 number on that line using a telephone. 2. Confirm that the number the modem is dialing is correct. 3. Confirm that the modem prefix, if any, is correct. Modem dials and connects, but nothing appears when you enter the location in the web browser 1. Check the settings in your dial-up networking icon, particularly that the Primary DNS is 165.135.22.249 and that TCP/IP is the only selected protocol. 2. Confirm that your web browser is using no proxies. 3. It is recommended that you do not login to a TCP/IP Local Area Network (LAN). If you do login to a TCP/IP LAN, confirm that your LAN network ip address is being released. To do so, connect to the FCC Network using dial-up networking, then click the Start button in Windows 95 and select Run. Type winipcfg and press OK. If your ip address does not begin with 165.135.xxx.xxx, then your LAN i p address is not being released. Press the Release All button, or consult with your LAN administrator. Receive an Internal Server error in the Web browser Confirm that javascript is enabled in your web browser. Help For technical assistance with installing or using FCC software, contact the FCC Technical Support Hotline at (202) 414-1250 (V) or (202) 414-1255 (TTY). The FCC Technical Support Hotline is generally available Monday through Friday, from 8 a.m. to 6 p.m. ET. In addition, it will be available from 9 a.m. to 5 p.m. ET, the weekend of August 15-16, 1998. All calls to the FCC Technical Support Hotline are recorded. ATTACHMENT E SUMMARY LISTING OF DOCUMENTS FROM THE COMMISSION AND THE WIRELESS TELECOMMUNICATIONS BUREAU ADDRESSING APPLICATION OF THE ANTI-COLLUSION RULES All of the following documents can be found at an FCC web site: http://www.fcc.gov/wtb/auctions/collusio/collusio.html Commission Decisions: Second Report and Order in PP Docket No. 93-253, FCC 94-61, 9 FCC Rcd. 2348, 2386-2388 (1994), paragraphs 221-226. Fifth Report and Order in PP Docket No. 93-253, FCC 94-178, 9 FCC Rcd. 5532, 5570-5571 (1994), paragraphs 91-92. Fourth Memorandum Opinion and Order in PP Docket No. 93-253, FCC 94-264, 9 FCC Rcd. 6858, 6866-6869 (1994), paragraphs 47-60. Second Memorandum Opinion and Order in PP Docket No. 93-253, FCC 94-215, 9 FCC Rcd. 7245, 7253-7255 (1994), paragraphs 48-55. Memorandum Opinion and Order in PP Docket No. 93-253, FCC 94-295, 9 FCC Rcd. 7684, 7687-7689 (1994), paragraphs 8-12. In re Commercial Realty St. Pete, Notice of Apparent Liability for Forfeiture, 10 FCC Rcd. 4277 (1995); In re Commercial Realty St. Pete, Memorandum Opinion and Order, 11 FCC Rcd. 15374 (1996). In re Applications of Mercury PCS II, LLC, Notice of Apparent Liability for Forfeiture, 12 FCC Rcd. 17970 (1997) (petition for partial reconsideration pending). Amendment of Part 1 of the Commission's Rules -- Competitive Bidding Procedures, Allocation of Spectrum Below 5 GHz Transferred from Federal Government Use, 4660-4685 MHz, WT Docket No. 97-82, ET Docket No. 94-32, FCC 97-413, Third Report and Order and Second Further Notice of Proposed Rule Making, 13 FCC Rcd. 374, 463-469 (1997), paragraphs 155-166. In re Application of US West Communications, Inc., Notice of Apparent Liability for Forfeiture, FCC 98-41 (March 16, 1998). In re Application of Western PCS BTA I Corporation, Notice of Apparent Liability for Forfeiture, FCC 98-42 (March 16, 1998). Wireless Telecommunications Bureau Decisions: Amendment of Parts 21 and 74 of the Commission's Rules with Regard to Filing Procedures in the Multipoint Distribution Service and in the Instructional Television Fixed Service, Order, 11 FCC Rcd. 9655 (Wireless Tel. Bur. 1995). In re Applications of GWI PCS, Inc. For Authority to Construct and Operate Broadband PCS Systems Operating on Frequency Block C, Memorandum Opinion and Order, 12 FCC Rcd. 6441 (Wireless Tel. Bur. 1997). In re Applications of Mercury PCS II, LLC, For Facilities in the Broadband Personal Communications Services in the D, E, and F Blocks, Memorandum Opinion and Order on Reconsideration, 12 FCC Rcd. 18093 (Wireless Tel. Bur. 1997). In the Matter of Applications of High Plains Wireless, L.P., For Authority to Construct and Operate Broadband PCS Systems on Frequency Blocks D, E, and F, Memorandum Opinion and Order, 12 FCC Rcd. 19627 (Wireless Tel. Bur. 1997). In the Matter of Applications of Mercury PCS II, LLC, For Authority to Construct and Operate Broadband PCS Systems on Frequency Blocks D, E, and F, Memorandum Opinion and Order, 13 FCC Rcd. 5756 (Wireless Tel. Bur. 1997). Public Notices: "Wireless Telecommunications Bureau Clarifies Spectrum Auction Anti-Collusion Rules," Public Notice, 11 FCC Rcd. 9645 (1995). "FCC Staff Clarifies Application of Anti-Collusion Rule to Broadband PCS 'C' Block Reauction," Public Notice, 11 FCC Rcd. 7031 (1996). "Wireless Telecommunications Bureau Provides Guidance on the Anti-Collusion Rule for D, E and F Block Bidders," Public Notice, 11 FCC Rcd. 10134 (1996). Letters from the Office of General Counsel and the Wireless Telecommunications Bureau: Letter to Gary M. Epstein and James H. Barker from William E. Kennard, General Counsel, Federal Communications Commission (released October 25, 1994). Letter to Alan F. Ciamporcero from William E. Kennard, General Counsel, Federal Communications Commission (released October 25, 1996). Letter to R. Michael Senkowski from Rosalind K. Allen, Acting Chief, Commercial Radio Division, Wireless Telecommunications Bureau (released December 1, 1994). Letter to Leonard J. Kennedy from Rosalind K. Allen, Acting Chief, Commercial Radio Division, Wireless Telecommunications Bureau (released December 14, 1994). Letter to Jonathan D. Blake and Robert J. Rini from Kathleen O'Brien Ham, Chief, Auctions Division, Wireless Telecommunications Bureau, DA 95-2404 (released November 28, 1995). Letter to Mark Grady from Kathleen O'Brien Ham, Chief, Auctions Division, Wireless Telecommunications Bureau, 11 FCC Rcd. 10895 (1996). Letter to David L. Nace from Kathleen O'Brien Ham, Chief, Auctions Division, Wireless Telecommunications Bureau, 11 FCC Rcd. 11363 (1996). Letter to Elliott J. Greenwald from Christopher J. Wright, General Counsel, Federal Communications Commission (released April 6, 1998). Miscellaneous: Many of these documents can be retrieved from the FCC web site (http://www.fcc.gov/wtb/auctions/collusio/collusio.html), where documents may be located by using our search engine (select the link "search"). All of these documents can be ordered in hard copy from the Commission's contractor, International Transcription Service, Inc. at (202) 857-3800. Documents retrieved from the FCC web site are available in more than one format: .pdf, .txt, and .wp. (The key to the extensions is the following: .pdf = Acrobat Reader, .txt = Text, and .wp = Word Perfect.) In order to review a document in its entirety, including footnotes, it is necessary to access the document in Word Perfect or Acrobat Reader. ATTACHMENT F LIST OF COMMENTERS 1. American Mobile Telecommunications Association, Inc. ("AMTA") 2. SMR Advisory Group, L.C. ("SMRAG") 3. SEA, Inc. ("SEA")