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 98-2143 October 23, 1998 Phase II 220 MHz Service Auction Closes WINNING BIDDERS IN THE AUCTION OF 908 PHASE II 220 MHZ SERVICE LICENSES Down Payments Due November 6, 1998 FCC Form 601s Due November 6, 1998 Ten-Day Petition to Deny Period Report No. AUC-18-F (Auction No. 18) On October 22, 1998, the Federal Communications Commission completed the auction of 908 licenses for the Phase II 220 MHz Service, raising (in net high bids) a total of $21,650,301 for the U.S. Treasury. Each of the 44 winning bidders that won a total of 693 licenses is listed in Attachment A. This public notice provides detailed information concerning winning bidders, down payments, bid withdrawal payments or deposits, FCC Form 601 filing requirements, requests for rule waivers, and licensing matters. Key information appears in the following attachments: Attachment A: Lists the winning bidders, the licenses won by each winning bidder, and both the gross and net high winning bid amounts. Attachment B: Lists the down payments and any withdrawn bid payments owed by winning bidders. Attachment C: Lists withdrawn bid payments owed by all bidders. Attachment D: Provides detailed information about how winning bidders should complete their required FCC Form 601 for Phase II 220 MHz Service license applications. Attachment E: Provides instructions for registering and filing the FCC Form 601 electronically. Attachment F: Provides instructions for accessing the FCC Network using Windows 95/98. A copy of this public notice will be mailed via overnight mail to each winning bidder. Phase II 220 MHz Service Re-Auction. The Commission plans to conduct a re-auction of the remaining 215 Phase II 220 MHz Service licenses in the second quarter of 1999. The date of this auction and the terms, conditions, and procedures, will be announced by public notice. Down payments. The Commission's rules require that within ten business days after the release of this public notice, in this case, by 6:00 p.m. ET on November 6, 1998, winning bidders in the Phase II 220 MHz Service auction must have on deposit with Mellon Bank in Pittsburgh, Pennsylvania, enough funds to cover all required: (1) down payments on winning bids, and (2) payments for withdrawn bids. If a bidder's upfront payment is not sufficient to meet both of these requirements, the bidder must deposit additional funds. See 47 C.F.R.  1.2107(b), 90.1011(b). The amount now due from each winning bidder, if any, is set out in the last column of Attachment B. Note that only if a winning bidder's upfront payment covers the required total of down payments and withdrawn bid payments (as reflected in Attachment B) is no payment or FCC Form 159 necessary at this time. Each winning bidder's down payment must be a total of twenty (20) percent of its net winning bid(s) plus any withdrawal payments. Final payments. After the termination of the licensing pleading cycle (see 47 C.F.R.  1.2108), the Commission will issue a public notice announcing that it is prepared to grant the licenses. Within ten business days after the date of that public notice, winning bidders will be required to make full payment of the balance of their winning bids. See 47 C.F.R.  1.2109, 1.2107(b) and 90.1015. Licenses will be subsequently granted only after final payment is made. Method of payment. All payments must be in U.S. dollars and made in the form of a wire transfer. No personal checks, credit card payments, or other forms of payment will be accepted. All payments must be accompanied by a completed FCC Remittance Advice Form (FCC Form 159). A partially completed copy of the FCC Form 159 will be sent to each winning bidder within three (3) business days following release of this public notice to facilitate submission of the correct down payment. Winning bidders that have not received the partially completed FCC Form 159 by that date should contact Tim Dates at 202-418-1995. However, winning bidders are ultimately responsible for the verification and submission of the correct down payment. Wire transfer payments must be received by Mellon Bank by 6:00 p.m. ET, on November 6, 1998. Bidders should coordinate with their bankers ahead of time regarding their wire transfers, and allow sufficient time for the wire transfer to be initiated and completed prior to the deadline. To submit funds by wire transfer, bidders will need the following information: ABA Routing Number: 043000261 Receiving Bank: Mellon Pittsburgh BNF: FCC/AC-9116106 OBI Field: (Skip one space between each information item) "AUCTIONPAY" TAXPAYER IDENTIFICATION NO. (same as FCC Form 159, Block 26) PAYMENT TYPE CODE (same as FCC Form 159, Block 20A: "A22D") FCC CODE 1 (same as FCC Form 159, Block 23A: "18") PAYOR NAME (same as FCC Form 159, Block 2) LOCKBOX NO. 358850 Bidders 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). Proper completion of the FCC Form 159 is critical to ensuring correct credit of bidder deposits. Bidders must use the same Taxpayer Identification Number used on their FCC Form 175. Questions concerning the calculation and submission of down payments should be directed to Gail Glasser at 202-418-1995. Withdrawal, default and disqualification payments. The Commission will impose payments on bidders that withdraw high bids during the course of an auction, or that default on payments due after an auction closes, or that are disqualified. A bidder that withdraws a high bid during the course of an auction is subject to a payment equal to the difference between the amount withdrawn and the amount of the subsequent winning bid. In the case of a license not selling in the same auction, the withdrawal payment is based on the selling price the next time the license is offered by the Commission. The bid withdrawal payment is either the difference between the net withdrawn bid and the subsequent net winning bid, or the difference between the gross withdrawn bid and the subsequent gross winning bid, whichever is less. No withdrawal payment is assessed if the subsequent winning bid exceeds the withdrawn bid. This payment amount is deducted from any upfront payments or down payments that the withdrawing bidder has deposited with the Commission. See 47 C.F.R. 1.2104(g)(1). In those cases where the amount of the withdrawal payment cannot yet be determined because there was no winning bid, the withdrawing bidder is required to make a three (3) percent deposit on the net amount bid on the license(s). Implementation of Section 309(j) of the Communications Act -- Competitive Bidding, PP Docket No. 93-253, Fifth Report and Order, 9 FCC Rcd 5532, 5563 at n. 51 (1994); C.H. PCS, Inc., Order, 11 FCC Rcd 22430 (Wireless Tel. Bur., 1996) (requiring a three percent deposit for default payments). When it becomes possible to calculate and assess the payment, we will notify these bidders. As discussed above, a bidder's upfront payment will first be applied toward its withdrawn bid payment. If a high bidder defaults or is disqualified after the close of the auction, the defaulting bidder will be subject to the same payment obligations as described above, plus an additional payment equal to three (3) percent of the subsequent winning bid. If the subsequent winning bid exceeds the defaulting bidder's bid amount, the three (3) percent payment is calculated based on the defaulting bidder's bid amount. If either bid amount is subject to a bidding credit, the three (3) percent credit will be calculated using the same bid amounts and basis (net or gross bids) as in the calculation of the payment for withdrawn bids prior to the close of the auction. See 47 C.F.R. 1.2104(g)(2). If a winning bidder fails to remit the required down payment within ten (10) business days after the Commission has declared competitive bidding closed, the bidder will be deemed to have defaulted, its application will be dismissed, and it will be liable for a default payment as described above. In such event, the Commission, at its discretion, may either reauction the license to existing or new applicants, or offer it to the other highest bidders (in descending order) at their final bids. See 47 C.F.R. 1.2109(b) and 90.1015(b). If a winning bidder fails to pay the balance of its winning bids in a lump sum by the applicable deadline as specified by the Commission, it will be allowed to make payment within ten (10) business days after the payment deadline provided that it also pays a late fee equal to five (5) percent of the amount due. When a winning bidder fails to pay the balance of its winning bid plus late fee by the late payment deadline, it is considered to be in default on its license(s) and subject to the applicable default payments. Licenses will be awarded upon the full and timely payment of winning bids and any applicable late fees. See 47 C.F.R.  1.2109(a). A winning bidder that is found unqualified to be a licensee, fails to remit the balance of its winning bid in a timely manner, or defaults, or is disqualified for any reason after having made the required down payment, will be deemed to have defaulted and will be liable for the payment set forth in  1.2104(g)(2). In such event, the Commission may either re-auction the license to existing or new applicants or offer it to the other highest bidders (in descending order) at their final bids. See 47 C.F.R.  1.2109(c). Finally, bidders that are found to have violated the antitrust laws or the Commission's rules in connection with their participation in the competitive bidding process may be subject, in addition to any other applicable sanctions, to forfeiture of their upfront payment, down payment, or full bid amount, and may be prohibited from participating in future auctions. See 47 C.F.R. 1.2109(d). Attachment B identifies winning bidders that owe withdrawal payments to the Commission. Attachment C lists withdrawal payments or deposits owed by all bidders. Refund of excess upfront payments (for winning bidders). Upfront monies on deposit which are in excess of the required down payment, withdrawal and default payment amounts will be refunded to the payor of record promptly. Winning bidders must fax the necessary wire transfer instructions to Linwood Jenkins or Gail Glasser at 202-418-2843. Any questions concerning refunds should be referred to Linwood Jenkins or Gail Glasser at 202-418-1995. Refund of excess upfront payments (for non-winning bidders). Non-winning bidders must fax the necessary wire transfer instructions to Linwood Jenkins or Gail Glasser at 202-418-2843. Any questions concerning refunds for non-winning bidders should be referred to Linwood Jenkins or Gail Glasser at 202-418-1995. FCC FORM 601 By 5:30 p.m. ET on November 6, 1998, winning bidders must submit completed long-form license application(s) covering each license for which they were the winning high bidder. Applications may be filed either electronically or manually, though the Commission encourages electronic filing. Attachment D sets out instructions for completing the FCC Form 601. This form replaces FCC Form 600 in conjunction with our development of the new universal licensing system for filing and processing of applications in wireless services. Electronic filing. Detailed instructions for registering and filing the Form 601 electronically are set out in Attachment E. Manual filing. Manual filers must complete the FCC Form 601 Main Form and Schedule B and attach any exhibits. Manual filers are requested to submit a "clean" (i.e., without lines, markings, footnotes, tables, charts, etc.) original application which does not contain any information in spreadsheet format. Manual filers must mail or deliver the original application to: FCC Form 601 Filing, Auction No. 18 Federal Communications Commission Wireless Telecommunications Bureau Information Technology Division 1270 Fairfield Road Gettysburg, Pennsylvania 17325-7245 Copies of FCC Form 601 can be obtained by calling the Commission's Forms Distribution Center at 1-800-418-3676 (outside Washington, D.C.) or 202-418-3676 (in the Washington area). Copies of FCC Form 601 can also be obtained via the Internet (http://www.fcc.gov/formpage.html) or by Fax-On-Demand (202-418-2830). All manually filed FCC Form 601s shall be submitted on one original paper copy. Additionally, all Attachments to manually filed applications shall be filed on a standard 3.5" magnetic diskette formatted to be readable by high density floppy drives operating under MS-DOS (version 3.X or later compatible versions). Each diskette submitted must contain an ASCII text file listing each filename and a brief description of the contents of each file and format for each document on the diskette. The files on the diskette, other than the table of contents, should be in Adobe Acrobat Portable Document Format (PDF) whenever possible. All diskettes submitted must be legibly labelled, referencing the application and its filing date. Manual filers should review each exhibit file to ensure that the information contained in the exhibit is complete. Failure to timely file FCC Form 601 or sign a manually-filed FCC Form 601 will result in dismissal of the application. Only original signatures will be accepted for manually-filed applications. Multiple filings. If an applicant submits more than one FCC Form 601, once manually and once electronically, the electronic filing will be considered by the Commission and the manual filing will be discarded as a duplicate filing. This policy will apply regardless of which filing is received first at the Commission. In the event an applicant submits the same filing twice and would like the manual filing to be considered, the applicant must withdraw the electronic filing. Applications for multiple licenses. Electronic or manual filers applying for multiple licenses are not required to submit a separate Form 601 application for each market if all filing requirements associated with the application (name and address information, all ownership and eligibility attachments, and waiver requests) are identical except for the market designator, channel block and market name. Under these circumstances, applicants may submit one FCC Form 601 Main Form and Schedule B. Electronic or manual filers whose name and address, ownership, eligibility, and waiver requests are identical for some licenses but different for others may utilize this streamlined filing procedure only for those licenses that have identical filing information. For those licenses with unique information, a separate application must be submitted. Application processing and license grant. Pursuant to 47 C.F.R.  1.2108(b) and the Balanced Budget Act of 1997, Pub. L. 105-33, 111 Stat. 251 (1997), interested parties will have ten (10) days after the Commission gives public notice that the FCC Form 601s are acceptable for filing to file petitions to deny. An applicant may file an opposition to any petition to deny within five (5) days from the filing date of the petition to deny. 47 C.F.R.  1.2108(c). The petitioner may file a reply to such opposition within five (5) days from the filing date of the opposition. 47 C.F.R.  1.2108(c) If the Commission determines that an applicant is qualified and there is no substantial and material issue of fact concerning that determination, it will grant the application. Anti-collusion rules. To ensure the integrity of its auctions, the Commission's anti-collusion rules generally prohibit applicants for the same geographic license area from discussing bids or bidding strategies during the course of the auction. The prohibition begins when short-form applications to participate in the auction are filed; it ends when the winning bidders submit their down payments. 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). Post-Auction Forum. The Wireless Telecommunications Bureau will sponsor a joint post-auction forum for bidders that participated in the Phase II 220 MHz Service auction, as well as bidders in the upcoming VHF Public Coast Service and Location and Monitoring Service auctions. This forum, which will be announced by a subsequent public notice, will be held after the completion of the VHF Public Coast auction and the Location Monitoring Service auction. The purpose of this forum is to receive feedback from bidders on the auctions process and their experience. In addition, bidders are encouraged to use this forum to present specific recommendations for improving the operational components of the auctions process. Among the general topics to be discussed are information dissemination, application processing and payment, and the overall conduct of the auction. Key FCC staff will be available to answer questions. * * * * * For further information, contact: News Media: Meribeth McCarrick at 202-418-0654 Technical Support Hotline: Technical Support Personnel at 202-414-1250 (V) or 202-414-1255(TTY) Office of the Managing Director Regina Dorsey, Gail Glasser or (Payment, FCC Form 159 and refund questions) Linwood Jenkins at 202-418-1995 Wireless Telecommunications Bureau, Scott Mackoul at 202-418-7240 Commercial Wireless Division (FCC Form 601 questions) Wireless Telecommunications Bureau, Ruby Hough, Bob Reagle, Auctions and Industry Analysis Division Christina Clearwater or (Auction-related questions) Frank Stilwell at 202-418-0660. - FCC -