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 98-1689 August 24, 1998 AUCTION OF PHASE II 220 MHZ SERVICE LICENSES Status of Applications to Participate in Auction Bureau Reminds Bidders of Responsibilities Under NEPA Provisions Report No. AUC-18-C (Auction No. 18) The Federal Communications Commission ("FCC") has received 71 FCC Form 175 applications to participate in an auction scheduled to begin on Tuesday, September 15, 1998, for 908 Phase II 220 MHz licenses. The applications have been reviewed for completeness and compliance with the Commission's Rules, and have been classified into the following categories: ACCEPTED FOR FILING.................................................. 38 Applications INCOMPLETE..................................................................... 32 Applications REJECTED.......................................................................... 1 Application Accepted: Applications classified as accepted for filing are listed alphabetically in Attachment A. These applicants will become qualified bidders upon receipt of the required upfront payment by 6:00 p.m. ET on Monday, August 31, 1998, as discussed below. With respect to their applications, applicants need take no further action except as may be necessary to keep their applications up-to-date. See 47 C.F.R.  1.65 and 1.2106. Applicants are also advised that Attachment A includes FCC account numbers which are automatically created by the FCC software system for each applicant. FCC account numbers are applicable for bidding only. Incomplete: Applications classified as incomplete are listed alphabetically in Attachment B. These applicants will become qualified bidders only if they: (1) resubmit their applications by 5:30 p.m. ET on Tuesday, September 1, 1998, to correct the minor deficiencies indicated, and (2) make the required upfront payments by Monday, August 31, 1998, as discussed below. They must also keep their applications up-to-date as required. See 47 C.F.R.  1.65 and 1.2106. Applicants are also advised that Attachment B includes FCC account numbers which are automatically created by the FCC software system for each applicant. FCC account numbers are applicable for bidding only. Rejected: Electronic applications and manual applications not timely filed with the Commission in Gettysburg, Pennsylvania are rejected without the opportunity to resubmit. See Attachment C. Waiver Requests: Some applications included waiver requests regarding their participation in the auction (either in the waiver data field or in exhibits). In the Attachments, applications denoted with an asterisk (*) have pending waiver request(s). In no event does acceptance of these applications indicate that the waiver requests have been granted. Final resolution of these requests will be released separately, and may affect an applicant's qualifications to hold a license or particular licenses. Confidentiality Requests: The requests for confidentiality filed by applicants in this auction will not be granted. These requests seek confidential treatment of gross revenues data and other information which is required by the Commission's Rules. We will issue letters specifically addressing the requests. Applicants will be required to make this information publicly available if they wish to become qualified bidders. Taxpayer Identification Number (TIN) / Social Security Number (SSN): During the course of reviewing the FCC Form 175 applications, Commission staff noticed that a number of applicants had included either TINs or SSNs in the text of their exhibits. Accordingly, before the FCC Form 175 applications and exhibits will be made public, applicants will have a limited opportunity to delete TINs and/or SSNs. The FCC Form 175 applications and exhibits will be available for deletion of TINs and/or SSNs from Monday, August 24, 1998 upon release of this Public Notice to 3 p.m. ET on Tuesday, August 25, 1998. After 3 p.m. ET on Tuesday, August 25, 1998, the database will be open for public review. RESUBMISSION FILING DEADLINE Corrected FCC Form 175 applications must be filed no later than 5:30 p.m. ET on Tuesday, September 1, 1998. This will be the only opportunity to cure FCC Form 175 defects; late resubmissions will not be accepted. Applicants that filed their FCC Form 175 applications electronically must resubmit their corrected applications electronically. Applicants who filed their FCC Form 175 applications manually may resubmit their corrected applications either manually or electronically, but must resubmit electronically if they wish to bid electronically. Attachment E contains updates to the Bidder Information Package (Tabs C and D) for the Phase II 220 MHz Service auction regarding the FCC Form 175 electronic filing process. Manual Resubmission: Manual resubmissions, whether mailed, hand-delivered or sent by private courier, must be delivered to: Attn: FCC Form 175 Processing, Auction No. 18 Federal Communications Commission Auctions & Industry Analysis Division 1270 Fairfield Road Gettysburg, Pennsylvania 17325-7245 NOTE: Manual resubmissions delivered to unauthorized locations or received after the deadline will not be considered properly filed, and will be returned without consideration. Manual resubmissions must consist of a new FCC Form 175, complete in all respects including exhibits, correcting the identified deficiencies and signed with an original signature. See 47 C.F.R.  1.2105(b)(3). In addition, for corrected applications consisting of more than five pages all attachments must be submitted on a 3.5-inch diskette, or the entire application must 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. Electronic Resubmission of Manual Applications: Manual filers may resubmit their corrected FCC Form 175 applications electronically, either to correct deficiencies or in order to become eligible to bid electronically. In either case, however, manual filers must first obtain log-in codes that will let them access and amend their applications on-line. To do so, either the certifying official or one of the authorized representatives (as shown on the FCC Form 175) must appear in person during normal business hours (between 9 a.m. and 5:30 p.m. ET) at the FCC Auction Headquarters, 2 Massachusetts Avenue, N.E., Washington, D.C., with two forms of identification, one of which must include a photograph. UPFRONT PAYMENT DEADLINE Upfront payments and accompanying FCC Remittance Advice (FCC Form 159) for this auction are due at Mellon Bank, Pittsburgh, Pennsylvania, by 6:00 p.m. ET on Monday, August 31, 1998. Payments must be made by wire transfer and applicants must use their Taxpayer Identification Number (TIN). No other payment method is acceptable for this auction. See "Auction of the Phase II 220 MHz Service Licenses," Public Notice, DA 98-1010, released on May 29, 1998, 63 FR 35213 (June 29, 1998) for detailed remittance and upfront payment instructions ("Auction Public Notice"). Applicants are reminded to use their TIN and not FCC Account Numbers on the FCC Remittance Advice (FCC Form 159). Applicants that have filed applications classified by this Public Notice as incomplete must submit timely and sufficient upfront payments in order for the Commission to review their resubmitted applications. If such an application remains incomplete following its resubmission, it will be dismissed; the upfront payment will be refunded automatically if the applicant has provided its Taxpayer Identification Number (TIN) and wire transfer instructions. OTHER IMPORTANT INFORMATION Qualified Bidders: A final Public Notice listing all applicants qualified to bid in the auction will be released after upfront payments have been received, resubmitted FCC Form 175 applications have been processed and reviewed, and payments and applications have been correlated. The final Public Notice will also include instructions on how to monitor the auction on-line and access the bid tracking tool software. Reserve Price or Minimum Opening Bid: The Wireless Telecommunications Bureau ("Bureau") has established minimum opening bid requirements for the Phase II 220 MHz Service auction. See "Auction Public Notice," at 24-29. Anti-Collusion Rule: As of the August 17, 1998, FCC Form 175 filing deadline, applicants are generally prohibited from communicating with other applicants for licenses in the same markets regarding bids, bidding strategies or settlements. The only exception is where applicants entered into a bidding agreement before the Monday, August 17, 1998, FCC Form 175 deadline and disclosed the existence of the agreement on their application. Both applicants to the agreement must disclose this information in order for the agreement to be valid and to permit communication during the auction. More particularly, the Commission's anti-collusion rule provides that applicants may not cooperate, collaborate, discuss or disclose the substance of their bids or bidding strategies with other bidders until after the high bidder makes the required down payment. 47 C.F.R.  1.2105(c)(1) (emphasis added). In addition, applicants are reminded that they are subject to the antitrust laws, which are designed to prevent anti-competitive behavior in the marketplace. Winning bidders will be required to disclose in their long-form applications the specific terms, conditions and parties involved in all bidding consortia, joint ventures, partnerships, and other arrangements entered into relating to the competitive bidding process. Bidders found to have violated the anti-collusion rule may be subject to sanctions. See 47 C.F.R.  1.2105(c), 1.2107(d), and 1.2109(d). Ex Parte Rule: Applicants should also be aware that the Commission has generally exempted auction proceedings from the strict requirements of the ex parte rule (47 C.F.R.  1.1208). See "Commission Announces that Mutually Exclusive Short-Form' Applications (Form 175) to Participate in Competitive Bidding Process ( Auctions') Are Treated as Exempt for Ex Parte Purposes," Public Notice, 9 FCC Rcd 6760 (1994). Mock Auction: All applicants found to be qualified bidders are eligible to participate in a mock electronic auction on Friday, September 11, 1998. When software for the mock auction is posted on the World Wide Web and BBS for downloading, its availability will be announced by public notice. Remote Bidding Software: Applicants are reminded that qualified bidders that filed (or amend) their FCC Form 175 applications electronically are eligible to bid either electronically or telephonically, whereas manual filers may bid only by telephone. To order the remote bidding software, applicants should complete the software order form attached to this public notice as Attachment D. As discussed more fully below, applicants ordering a Windows 95 version of the software must clearly indicate that information on the software order form in Attachment D. To ensure timely delivery of remote bidding software before the auction begins, the Commission must receive software orders by 5:30 p.m. ET on Tuesday, September 1, 1998. Attachment F to this Public Notice sets out the hardware and software specifications required for the FCC remote bidding system. Long-Form Applications: All applicants should be aware that at the long-form application stage, they will be subject to the more extensive reporting requirements contained in the newly adopted Part 1 ownership disclosure rule. See 47 C.F.R.  1.2112(b). 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). NATIONAL ENVIRONMENTAL POLICY ACT (NEPA) REQUIREMENTS Licensees must comply with the Commission's rules regarding the National Environmental Policy Act (NEPA). The construction of a wireless antenna facility is a federal action and licensees must comply with the Commission's NEPA rules for each wireless facility. See 47 C.F.R. 1.1305-1.1319. The Commission's NEPA rules require that, among other things, licensees consult with expert agencies having NEPA responsibilities including the U.S. Fish and Wildlife Service, the State Historic Preservation Office, the Army Corp of Engineers and the Federal Emergency Management Agency (through the local authority with jurisdiction over floodplains). Licensees must prepare environmental assessments for wireless facilities that may have a significant impact in or on wilderness areas, wildlife preserves, threatened or endangered species or designated critical habitats, historical or archaeologic sites, Indian religious sites, floodplains, and surface features. Licensees must also prepare environmental assessments for wireless facilities that include high intensity white lights in residential neighborhoods or excessive radiofrequency emission. * * * * * For questions about payment or instructions for wiring upfront payments, contact Gail Glasser or Linwood Jenkins, Billing and Collections Branch, at (202) 418-1995. For specific questions about an applicant's incomplete or rejected status, the applicant should contact the designated attorney identified in the correspondence sent to the applicants by overnight mail . For additional information, contact: Lisa Hartigan, Christina Clearwater or Frank Stilwell (regarding general filing status), and Bob Reagle (regarding bidding), Auctions & Industry Analysis Division, Wireless Telecommunications Bureau, at (202) 418-0660. For information regarding FCC rules concerning compliance with the National Environmental Policy Act (NEPA), please contact Robert Cannon or Rose Crellin, at (202) 418-0569. - FCC - Attachment A (See Excel file) Attachment B (See Excel file) Attachment C (See Excel file) Attachment D FCC REMOTE BIDDING SOFTWARE ORDER FORM:The Phase II 220 MHz Service Auction Only those qualified bidders that file their FCC Form 175 applications electronically have the option of using the FCC Remote Bidding Software to participate in the auction bidding process. Further, while bidders are free to copy the software for use by authorized bidders at different locations, the FCC auction system will accept electronic bids only from bidders who have purchased the software. (Since bidding software is tailored to a specific auction, software from prior auctions will not work for Auction 18.) The price of the FCC Remote Bidding Software is $175.00, including a user manual and shipping. To order, complete the form below and return no later than 5:30 p.m. ET on Tuesday, September 1, 1998, to: FCC Bidding Software, Auction No. 18 Auction Operations Branch 1270 Fairfield Rd. Gettysburg, PA 17325-7245 FAX: 717-338-2850 For security purposes, software packages will be sent with other registration materials only to the contact person at the applicant address specified on the FCC Form 175. NO EXCEPTIONS. Auction applicant: ______________________________________________________________ FCC Assigned Account No. __________________________ Phone:_____________________ Fax: ____________________________ Fax Modem No. ______________________________ Payment of $ 175.00 US by: check enclosed Visa MasterCard Type: 3.5 diskette CD-Rom Operating System: Windows 3.1 Win 95 Credit card number _____________________________________ Expiration date __________ Name on card _________________________________________________________________ Authorized signature ___________________________________________ Date ___________ Attachment E The following are updates to the FCC Auctions Bidder Information Package for the Phase II 220 MHz Service Auction. The changes and additions have been italicized: FCC Form 175 Minimum Software Requirements (pp. 91-92) The minimum software requirements for using the FCC Form 175 electronic filing and review have been updated to the following: o Operating System: Microsoft Windows 95 or Microsoft Windows 3.1x 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. This dialer is distinct from the FCC ULS PPP Dialer. o Web Browser: Netscape Communicator 4.05 (http://www.netscape.com) o PDF Viewer: Adobe Acrobat 3.0 Reader or higher (http://www.adobe.com) o To use the FCC Form 175 Review download feature, you will need one of the following .tar file extraction utilities: Winzip (http://www.winzip.com) or Pkzip for Windows (http://www.hotfiles.com) 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. Submitting or Reviewing FCC Form 175 Applications (p. 92) When using Windows 3.1x, the Browse button may not function properly when uploading an attachment. You can type in the path to the file that you wish to upload in the File Name: field. When using Windows 3.1x and selecting a large number of licenses, the View Selected Licenses feature may not function properly. You can verify that you have selected the correct licenses by choosing the appropriate Frequency Block(s)/Channel(s) and making sure that the licenses are marked with an [X]' next to them. You may also use the Print Preview feature to verify the selected licenses. B. Exhibits and Attachments (p. 97) When electronically uploading attachments in FCC Form 175 Submission, applicants may use a variety of file formats including Word, Wordperfect, Adobe PDF, Excel, Lotus, and ASCII text and should verify that the files contain all exhibit information. Graphics file uploads(e.g., .bmp, .tiff, .jpg) are not supported, and graphics images should not be imported into any word processing files that are uploaded. If you find that an attachment has not converted properly to Adobe PDF format, take the following steps: 1. Re-upload the attachment. 2. Simplify the formatting of the file. For example, if using a Table structure in a Wordperfect document, remove the Table structure and leave the contents of the table, and then re-upload. Accessing the FCC Network Using Windows 3.1x (pp. 126-134) The FCC Auctions PPP Dialer for Windows 3.1x is distinct from the FCC ULS (Universal Licensing System) Dialer for Windows 3.1x. Download Method 2: Dial-In Access to the FCC Auction Bulletin Board System (BBS) (pp. 128-129). You may skip step number 6. After selecting D for Dialer in step 5, proceed to step 7 and download the three FCC Auctions PPP Dialer files in that menu. Attachment F FCC Remote Bidding System Hardware and Software Requirements You need at a minimum the following hardware and software: CPU: Intel Pentium or above RAM: 16 MB (more recommended if you have multiple applications open) Hard Disk: 12 MB available disk space 1.44 MB Floppy Drive or CD-ROM Drive (to install the Remote Bidding System) Modem: v.32bis 14.4 kbps Hayes compatible modem Monitor: VGA or above Mouse or other pointing device Microsoft Windows 3.1, Windows for Workgroups 3.11, or Windows 95 Netscape Communicator 4.05