PUBLIC NOTICE FEDERAL COMMUNICATIONS COMMISSION News Media Information: (202) 418-0500 445 12th STREET, S.W. Fax-On-Demand: (202) 418-2830 WASHINGTON, D.C. 20554 Internet: http://www.fcc.gov ftp.fcc.gov DA 00-724 March 31, 2000 AUCTION OF LICENSES FOR FIXED POINT-TO-POINT MICROWAVE SERVICES IN THE 38.6 to 40.0 GHz (39 GHz) BAND 35 Qualified Bidders Report No. AUC-30-D (Auction No. 30) This Public Notice identifies 35 applicants that have been found qualified to bid for fixed point-to-point microwave licenses in the 38.6 to 40.0 GHz ("39 GHz") band ("Auction No. 30"), which is scheduled to begin on Wednesday, April 12, 2000. This Public Notice also contains bidding instructions and other important information regarding the auction. Attachment A lists each of the 35 qualified bidders, their upfront payments, and maximum eligibility in bidding units. Attachment B lists the licenses that were listed on each qualified bidder's FCC Form 175 Attachment C lists those applicants that submitted FCC Form 175 applications, but did not qualify to bid in this auction. Attachment D contains software downloading/installing instructions for participation in the mock auction. Attachment E provides information on "How to Monitor FCC Auctions Online" and round results file formats for use during the auction. Attachment F provides information concerning Accessing the FCC Network using Windows 95/98. In order to participate effectively in the auction, qualified bidders should re-familiarize themselves with the auction rules and other information contained in the Public Notices released for this auction. The following information provides additional guidance. Registration. Qualified bidders have been automatically registered for the auction. For security reasons, the Commission will confirm registration by two separate mailings of registration materials, both sent to the contact person at the contact address identified in the bidder's FCC Form 175. Each mailing will include confidential bidding codes. The second mailing will also include remote bidding system software, if ordered. Upon receipt of both mailings, each bidder should be in possession of the following information:  FCC Account Number (as assigned by FCC)  Bidder Identification Number  Login ID  Login Password  Remote bidding system software, if ordered  FCC Bidder Line Telephone Number Applicants are solely responsible for ensuring the security of their computer systems, the security of their bidding codes, and that only authorized bidders place bids on their behalf. The FCC assumes no responsibility or liability for these matters. WARNING: Any unauthorized person or entity accessing or tampering with an FCC or other government computer will be prosecuted to the full extent of the law. Any applicant listed as a qualified bidder in Attachment A to this Public Notice that has not received both registration mailings by noon on Friday, April 7, 2000, must contact the Auctions Hotline directly at (717) 338-2888. It is each applicant's responsibility to ensure that all registration information has been received. Note: The bidding software mailed via Federal Express is not the software used in the mock auction, and is specifically designed to only be used in the actual auction event. The downloadable mock auction software is discussed later in this public notice. Bidding Code Replacement. Lost Login IDs, Login Passwords and Bidder Identification Numbers can be replaced only at the FCC Auction Headquarters, located at 445 12th Street, S.W., Washington, D.C. If replacement is necessary, either an authorized representative or the certifying official (as designated on the applicant's FCC Form 175) must appear in person with two forms of identification, one of which must be a photo identification. The authorized representative should immediately contact the technical support hotline to arrange the replacement of bidding codes. Electronic Bidding Software. Only those qualified bidders that have purchased the Commission's electronic bidding software will be permitted to bid electronically. The software has been updated for Auction No. 30; therefore, software from prior auctions will not work for this auction. For software backup, bidders are advised to duplicate the software for use by its authorized bidders at different locations. However, the FCC Remote Bidding Software will not accept electronic bids from qualified bidders who have not purchased the bidding software. Bidding Contingency Plan. Bidders should develop comprehensive contingency plans they can implement quickly in case they experience difficulty participating in the auction. While the FCC will correct any problems within Commission-controlled facilities, bidders are solely responsible for anticipating and overcoming problems such as bidder technical failures, local telephone service interruptions, adverse local weather conditions, unavailability of authorized bidders, or loss or breach of confidential security codes. The FCC Remote Bidding System requires access to a 900 service telephone line. Bidders should verify in advance that the telephone systems they will be using to submit electronic bids permit access to 900 service telephone numbers, and should consult their telephone administrators if they need assistance. All qualified bidders will be supplied with a telephone number for telephonic bidding in their registration materials. Those choosing not to bid electronically are required to use this telephone number to place bids. Electronic bidders may use this telephone number as an alternate method of bidding in the event they are not able to submit their bids electronically. Minimum Opening Bids. There will be a minimum opening bid for each license in Auction No. 30, calculated in accordance with the formulas we have previously announced. The minimum opening bid amount is subject to reduction at the discretion of the Commission. Bidders should be aware, however, that the FCC will not entertain requests to lower minimum opening bids. The agency will exercise its discretion, if at all, independent of any communications from bidders. Messages and Announcements. The FCC will post pertinent auction information as messages and announcements on the FCC Remote Bidding System, on its Internet site. Bidders should routinely check for messages and announcements each time they enter the Remote Bidding System, and should read this information carefully. Bidding Schedule. The bidding schedule for Wednesday, April 12, 2000, and continuing until further notice, will be: Bidding Period 9:00 a.m. - 10:00 a.m. ET Round Results 10:00 a.m. - 10:30 a.m. ET Bidding Period 2:00 p.m. - 3:00 p.m. ET Round Results 3:00 p.m. - 3:30 p.m. ET The FCC will set the pace of the auction based upon its monitoring of the bidding and its assessment of the auction's progress. All schedule changes are made by announcement during the course of the auction. Bidder Questions during the Auction. FCC auction officials and technical support staff will be available during the course of the auction to answer questions from bidders. Bidders should identify themselves as a bidder with time sensitive auction questions when calling any number. Help can be obtained through the following telephone numbers: FCC Bidder Line Use telephonic bid number (telephonic bidding, auction conduct supplied in registration mailing questions) FCC Technical Support Hotline (202) 414-1250 (all technical questions, software and hardware) FCC Auctions Division (legal questions) (202) 418-0660 Monitoring Round Results. Attachment E (How to Monitor FCC Auctions On-Line) of this Public Notice provides instructions for reviewing and downloading round results, and other material related to Auction No. 30 released by the Commission during the course of the auction. Auction Tracking Tool (ATT). The FCC has developed a tool for tracking the results of its auctions. The version specifically designed for Auction No. 30 will be available for downloading at noon on April 6, 2000 and should be used in both the mock auction and the actual auction. For individuals wishing to familiarize themselves with the ATT in the meantime, a sample version of the tool from a previous auction is available now. Both versions are available at the auctions web site, http://www.fcc.gov/wtb/auctions, from the Auctions section on the right select 39 GHz #30, and from the menu select Auction Tracking Tool or Sample Auction Tracking Tool as appropriate. The ATT is provided to bidders free of charge as an additional means of analyzing the auction round results. Bidders should develop back-up strategies for viewing round results that can be implemented quickly in case they experience technical difficulties with the tracking tool. The ATT is a stand-alone application which runs on Windows 95/98 and NT operating systems and does not require any other software, although some advanced features require Microsoft Excel 97. The tool will allow users to import round result files and analyze bidding results after each round of the auction. For installation and use instructions see the README file and on-line help system that accompany the ATT. User Requirements. This software is designed to be used by a wide range of users. For most effective use of the tool, users should be familiar with: * Microsoft Windows 95/98/NT * Microsoft Excel 97 * The FCC simultaneous multiple round auction format Software and Hardware Requirements. At a minimum, you will need the following: * Microsoft Windows 95, 98 or NT. * Up to 40-50 MB of available hard disk space. For the application itself, only 2-3 MB will be necessary, but the auction database can grow quite large. * 16 MB RAM and Pentium? based processor are required with 32 MB RAM and a Pentium? 166 or higher strongly recommended. * Some advanced features of the tool will require Microsoft Excel 97, but the majority of the tool's features can be used without Excel. Amendments to FCC Form 175s. Applicants are responsible for maintaining the accuracy and completeness of information furnished in their FCC Form 175 and exhibits. See 47 C.F.R  1.65. It is the staff's position that applicants should amend their applications within ten business days from the occurrence of a reportable change. Filers should make modifications to their FCC Form 175s electronically, and submit a letter briefly summarizing the changes to: Amy Zoslov Chief, Auctions & Industry Analysis Division Wireless Telecommunications Bureau Federal Communications Commission Room 4-A760 445 12th Street, SW Washington, DC 20554 with a courtesy copy to Kenneth Burnley at the same address. As described in the Commission's Rules, applicants may make only minor corrections to their FCC Form 175 applications (e.g., mailing address, authorized bidder). Major modifications (e.g., changing the markets applied for, changing control of the applicant, changing the certifying official) will not be accepted. See 47 C.F.R.  1.2105(b). Due Diligence. Spectrum to be auctioned in Auction No. 30 is the subject of an international conference (WRC-2000) and may be affected by the conference. The United States and other Inter-American Telecommunications Commission (CITEL) administrations have a joint proposal relating to this spectrum. CITEL is the telecommunications branch of the Organization of American States. To review this proposal, please see the Commission's WRC-2000 home page at: http://www.fcc.gov/wrc-00. Bidders are reminded that they should continue to conduct due diligence examinations regarding incumbents and other legal developments with respect to the licenses for which they bid during the course of the auction. Mock Auction. The FCC will conduct a mock auction on Friday, April 7, 2000, to allow qualified bidders to familiarize themselves with the electronic bidding software. The mock auction will be open only to qualified bidders. Telephonic bidding will also be available during the mock auction. Qualified bidders wishing to place telephonic bids should use the telephone number supplied in the registration materials for the auction. Pre-registration is not required to participate in the mock auction. This mock auction will include all Auction No. 30 licenses, and will follow the rules governing the actual auction. The mock auction will be identified as Auction No. 74. The program will assume that each bidder applied for all licenses in each of the four pre- defined groups of licenses (for a total of 2,450 licenses). The program will also assume that each bidder submitted upfront payments of $6,356,000, corresponding to 6,356,000 bidding units. The auction will simulate the start of Stage One, so bidders will be required to be active on at least 80 percent of their bidding units, or risk having a waiver automatically applied unless bidding eligibility is reduced. Electronic bidders participating in the mock auction are advised to review the software manual provided in the second mailing. For installation instructions, please refer to Attachment D of this Public Notice. The mock auction bidding schedule for Friday, April 7, 2000 will be: Round 1 Bidding Period 9:00 a.m. - 10:00 a.m. ET Round Results 10:00 a.m. - 10:20 a.m. ET Round 2 Bidding Period 10:30 a.m. - 11:30 a.m. ET Round Results 11:30 a.m. - 11:50 a.m. ET Break 12:00 p.m. - 1:00 p.m. ET Round 3 Bidding Period 1:00 p.m. - 1:30 p.m. ET Round Results 1:30 p.m. - 1:50 p.m. ET Round 4 Bidding Period 2:00 p.m. - 2:30 p.m. ET Round Results 2:30 p.m. - 2:50 p.m. ET Round 5 Bidding Period 3:00 p.m. - 3:15 p.m. ET Round Results 3:15 p.m. - 3:30 p.m. ET Round 6 Bidding Period 4:00 p.m. - 4:15 p.m. ET Round Results 4:15 p.m. - 4:30 p.m. ET Eligible Auction No. 30 bidders who wish to participate in the mock auction using electronic bidding must establish a Point-to-Point Protocol (PPP) connection to the FCC Auction Network through either an 800 or a 900 number, as selected through the mock auction software. (The FCC strongly encourages participants to test their ability to connect using the 900 number, in order to identify any potential problems such as a 900- number telephone block. There will be no access charge for the first minute of the 900- number connection time.) When participants establish the PPP connection and start the Mock Bidding System, they will register for the mock auction by entering their FCC Account Number. The Login name, Login password, and Bidder Identification Number (BINs) will be pre-filled. Note: Pre-filled codes are used for the mock auction only. For the actual auction, bidders must enter the confidential bidding codes supplied in the overnight mailings in order to access the bidding software. Remote bidding software for the mock auction will be available via the FCC's Internet System by noon on Thursday, April 6, 2000. See Attachment D for downloading/installing instructions. This software is specifically designed for this simulation, and is not adaptable to any other FCC spectrum auction. As part of the software, the Commission has established a suggestion box and welcomes your comments regarding the software. OTHER IMPORTANT INFORMATION Long-Form Applications: Applicants that claim status as a small or very small business should be aware that at the long-form application stage they will be subject to the more extensive reporting requirements contained in the Commission's Part 1 ownership disclosure rule. See 47 C.F.R.  1.2112(b). In addition, applicants with foreign ownership interests will be required to comply with 47 U.S.C.  310(b)(4) at the long- form application stage. For additional information regarding this Public Notice, please contact Lisa Stover or Bob Reagle, Auctions & Industry Analysis Division, Wireless Telecommunications Bureau, at (717) 338-2888, or Kenneth Burnley, Auctions & Industry Analysis Division, Wireless Telecommunications Bureau, at (202) 418-0660. Questions about software or hardware should be directed to Technical Support at (202) 414-1250. - FCC - On March 24, 2000, the Auctions and Industry Analysis Division granted waiver petitions filed by Townes Telecommunications, Incorporated, North Dakota Network Co., and PVT Networks, Inc. requesting permission to add license frequency blocks B through N in the markets selected on their FCC Form 175 applications. See Letter from Mark Bollinger, Acting Chief, Auctions and Industry Analysis Division, Wireless Telecommunications Bureau, to John Prendergast, Esq., DA 00-683 (rel. March 24, 2000). On March 30, 2000, a similar waiver petition was granted for Landmark Site Development, LLC. See Letter from Mark Bollinger, Acting Chief, Auctions and Industry Analysis Division, Wireless Telecommunications Bureau, to John Prendergast, Esq., DA 00-699 (rel. March 30, 2000) 2 See "Auction of Licenses for Fixed Point-To-Point Microwave Services in the 38.6 to 40.0 GHz (39 GHz) Band; Auction Notice and Filing Requirements for 2,450 Licenses in the 39 GHz Band; Scheduled for April 12, 2000; Minimum Opening Bids and Other Procedural Issues," Public Notice, DA 00-112 (released January 21, 2000) ("39 GHz Auction Public Notice"). This and other documents are available on the FCC website at: http://www.fcc.gov/wtb/auctions. See 39 GHz Auction Public Notice. For information on the minimum opening bid for each of the offered in Auction No. 30, see Attachment A of the 39 GHz Auction Public Notice. See 39 GHz Auction Public Notice at 7-9; see also Supplement to Attachment B; Auction of Licenses for Fixed Point-To-Point Microwave Services in the 38.6 to 40.0 GHz (39 GHz) Band; Auction Notice and Filing Requirements for 2,450 Licenses in the 39 GHz Band; Scheduled for April 12, 2000; Minimum Opening Bids and Other Procedural Issues," Public Notice, DA 00-478 (released March 2, 2000). 2