Interesting People mailing list archives
Auction Notice and Filing Requirements for 900 MHz PCS [anyone have a spare penny or so djf]
From: David Farber <farber () central cis upenn edu>
Date: Thu, 26 May 1994 07:21:01 -0400
Auction Note - Legal announcement from the Federal Communications Commission Date: Tue, 24 May 1994 17:02:38 -0400 (EDT) From: Bob Keller <rjk () telcomlaw com> Subject: Auction Notice and Filing Requirements for 900 MHz PCS COMMON CARRIER PUBLIC MOBILE SERVICES INFORMATION AUCTION NOTICE AND FILING REQUIREMENTS FOR TEN NATIONWIDE LICENSES FOR PERSONAL COMMUNICATIONS SERVICES IN THE 900 MHZ BAND Report No. AUC-94-01, Auction No. 1 May 23, 1994 The Federal Communications Commission ("FCC") plans to hold a simultaneous multiple round auction for ten nationwide Personal Communications Service (PCS) licenses in the 900 MHz band ("narrowband PCS"). The auction will begin at 10:00 A.M. on Monday, July 25, 1994. Bidding will begin at 9:00 A.M and end at 6:00 P.M. each day thereafter until bidding has closed on all licenses. The auction will be held in the Blue Room at the Omni Shoreham Hotel at 2500 Calvert Street, N.W. Washington D.C., Telephone number (202) 234-0700. Those wishing to participate in the auction must submit an FCC Form 175 in accordance with the Commission's rules and the instructions in this Public Notice. The FCC Form 175 must be received on or before 5:30 P.M. EDT, Friday, July 1, 1994. Applicants are also required to submit a upfront payment of $350,000 per license (in U.S. dollars) for the maximum number of licenses on which they expect to bid in any single round. The upfront payment must be by wire transfer or cashier's check payable to the Federal Communications Commission or "FCC" and must be received on or before 3:00 P.M. EDT on Monday, July 11, 1994. Limited space will be available at the auction for members of the public to observe the auction. 1. Summary of Licenses to be Auctioned The following table lists by market number and frequency block number the 10 nationwide narrowband PCS licenses grouped by category of license. All ten licenses will be auctioned simultaneously: (1) Five 50 kHz channels, each paired with another 50 kHz channel: Market No. N-1, Frequency Block No. 1: 940.00-940.05 and 901.00-901.05 MHz; Market No. N-2, Frequency Block No. 2: 940.05-940.10 and 901.05-901.10 MHz; Market No. N-3, Frequency Block No. 3: 940.10-940.15 and 901.10-901.15 MHz; Market No. N-4, Frequency Block No. 4: 940.15-940.20 and 901.15-901.20 MHz; and, Market No. N-5, Frequency Block No. 5: 940.20-940.25 and 901.20-901.25 MHz.** (2) Three 50 kHz channels, each paired with another 12.5 kHz channel: Market No. N-6, Frequency Block No. 6: 930.40-930.45 and 901.7500-901.7625 MHz; Market No. N-7, Frequency Block No. 7: 930.45-930.50 and 901.7625-901.7750 MHz; and, Market No. N-8, Frequency Block No. 8: 930.50-930.55 and 901.7750-901.7875 MHz;** (3) Two 50 kHz unpaired channels: Market No. N-10, Frequency Block No. 10: 940.80-940.85 MHz. Market No. N-11, Frequency Block No. 11: 940.85-940.90 MHz,** Please note that Market No. N-9, Frequency Block No. 9: 940.75-940.80 MHz will not be offered at the auction. The market numbers and frequency block numbers outlined above should be used in filling out FCC Form 175, discussed more fully below. Businesses owned by women and/or minorities will be eligible for a 25 percent bidding credit on all licenses designated by an (**) above. See Third Report and Order at paras. 72-80. 2. Procedures, Terms and Conditions The auction will be conducted by Tradewinds International, Inc. and Cantor Fitzgerald Securities, Inc. Prospective bidders must thoroughly familiarize themselves with the procedures, terms and conditions (collectively, "Terms"), contained in the Second Report and Order in PP Docket No. 93-253, FCC 94-61, released April 20, 1994, and the Third Report and Order in PP Docket No. 93-253, FCC 94-98, released May 10, 1994. Copies of the Second Report and Order are available for a fee from International Transcription Services, Inc. at (202) 857-3800. A copy of the Third Report and Order will be included in the Bidder Information Package ("Bidder Package") described below. The Terms contained in the Commission Reports and Orders and in the Bidder Package are not negotiable. Prospective bidders should review these auction documents thoroughly prior to the auction to make certain that they understand all of the provisions and are willing to be bound by all of the Terms before making any bid. 3. Bidder Package The Bidder Package (as amended and supplemented from time to time) may be obtained by prospective bidders by contacting Tradewinds International, Inc. at General Aviation Terminal, No. 7 Thomas Avenue, Washington National Airport, Washington, D.C., 20001, telephone number (202) 637-3221, facsimile number (202) 637-3222. The business hours of Tradewinds International, Inc. are Monday through Friday 9:00 A.M. to 6:00 P.M., EDT. The Bidder Package will contain the following information: (1) A list of licenses to be offered simultaneously; (2) The procedures, terms and conditions of the auction; (3) A copy of the Third Report and Order in PP Docket No. 93-253, FCC 94-98; (4) An Application Form to participate in an FCC auction ("FCC Form 175" and "175S" or "Short-Form") including instructions on filling out the form and a sample of a completed Form 175; (5) An FCC Remittance Advice (FCC Form 159) to be submitted by bidders together with their upfront payment, down payment and final payment (described below); (6) Wire transfer instructions; (7) An application for a narrowband PCS license (FCC Form 401 or "Long-Form" application) to be submitted by winning bidders only; and (8) Other general auction information. 4. Short Form Application (FCC Form 175) In order to be eligible to bid in the auction bidders must submit an application for one or more narrowband PCS licenses on FCC Form 175 prior to the auction in compliance with applicable FCC Rules and Regulations and with the requirements set forth below. Only the person or persons identified on FCC Form 175 as qualified to make a bid will be permitted to bid at the auction. The FCC Form 175 may be submitted anytime after the release of this Public Notice but must be received no later than 5:30 P.M. EDT, Friday, July 1, 1994. Certain information necessary to complete FCC Form 175, such as market numbers and frequency block numbers for nationwide narrowband PCS licenses as well as the Auction No., may be found at the top of this Public Notice. Completion of Form 175 Applicants are required to complete all the items on the application. The applicant must also identify all parties to the application, including members of bidding consortia, joint ventures or any other agreements, arrangements or understandings relating to the auction or post- auction market structure. In completing FCC Form 175, bidders should note the following: 1. In item 6 of FCC Form 175, Auction No., applicants should enter "1". 2. Item 7 requires applicants to make up a ten digit FCC Account Number, a personal identification number that the Commission will use to identify and track applications. Applicants have two options to create this FCC Account Number. Option 1- an applicant may use its taxpayer identification number (TIN) with a prefix of "0", i.e., 0123456789. Option 2- an applicant may use its ten digit telephone number (i.e., 5552345678). Each applicant should use this same number when submitting additional information/material regarding its application, including any required fees submitted to the Commission on FCC Remittance Advice, (i.e. use the same number for the Form 175 and the FCC Account Number on FCC Form 159). This number must be used whenever an applicant writes, calls, or otherwise inquires about its application. Applicants will also need this number to register for the auction. 3. Items 9 and 10 will be used to determine whether the applicant is claiming a preference in the bidding process. As discussed more fully in the Third Report and Order, certain preferential measures are available to small businesses and businesses owned by members of minority groups and/or women. Applicants claiming a preference should refer to Section 1.2110 of the Commission's Rules (47 C.F.R. sec. 1.2110) for definitions and eligibility requirements applicable to small businesses and businesses owned by women and minorities. See also Third Report and Order at paras. 66-90. 4. In Item 11, applicants should identify the market number for each narrowband PCS license they want to bid on. The market number for each license is listed above. Applicants should list the market numbers for each license they are interested in bidding on in the first column labeled "Market No." If applicants want to bid on more than five markets, they should list each additional market number on FCC Form 175-S. For the Frequency Block No. in item 11, applicants should indicate the frequency block numbers associated with each license they expect to bid on at the auction. 5. In item 12, applicants should list the name(s) of a person(s) authorized to represent them at the auction. Only one bidding number per applicant will be assigned. 6. Applicants should read the "Certifications" listed on the FCC Form 175 carefully before signing the application. 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 a false certification to the Commission may result in penalties, including monetary forfeitures, license revocation(s), being barred from future auctions, and/or criminal prosecution. The Commission has established a Help Line to assist applicants in filling FCC Form 175. That number is (202) 637-3221. Applicants may call the Help Line for assistance Monday through Friday from 9:00 A.M. to 6:00 P.M. EDT. Microfiche copies of the FCC Form 175 or 175-S are not required. Failure to sign the FCC Form 175 will result in dismissal of the application and inability to participate in the auction. Where to Send the FCC Form 175: In order to be eligible to bid, an FCC Form 175 application must be received by 5:30 P.M., EDT on Friday, July 1, 1994. Late applications will not be accepted. Applications should be submitted either by hand delivery, certified U.S. mail (return receipt requested) or sent by private courier. Whether mailed, hand delivered or sent by private courier, applications must be addressed to: Tradewinds International, Inc. General Aviation Terminal No. 7 Thomas Avenue Washington National Airport Washington, D.C., 20001 Attention: Narrowband PCS Processing Applications will not be accepted if delivered to any other location. 5. Application Fee: No application fee or FCC Form 159 need accompany the FCC Form 175 for the auction. 6. Procedures after FCC Form 175 Applications are filed. After the deadline for filing FCC Form 175 applications has passed, the Commission will process all applications to determine whether they are accepted for filing. The Commission will issue a Public Notice listing all applications which are accepted for filing, rejected, and those which have minor defects that may be corrected. The Public Notice will also announce the deadline for filing corrected applications. As described more fully in the Commission's general auction rules, applicants may only make minor corrections to their FCC Form 175 applications. Applicants will not be permitted to make major modifications such as changes in ownership to their applications. Failure to sign an FCC Form 175 cannot be corrected and will cause the application to be dismissed and the applicant to be ineligible to participate in the auction. See Section 1.2105 of the Commission's Rules. 47 C.F.R. sec. 1.2105. After the deadline for resubmitting corrected applications the Commission will release another Public Notice announcing all applications that have been accepted for filing, including applicants who have corrected defective applications. 7. Upfront Payments In order to be eligible to bid at the auction, applicants must submit an upfront payment together with an FCC Form 159 to the Mellon Bank. The upfront payment is $350,000 per license for the maximum number of license on which an applicant expects to bid in any single round of bidding. Payment must be made in U.S. dollars and must be received by 3:00 P.M. EDT, Monday, July 11, 1994, in accordance with the terms and procedures set forth below and the Commission's Rules. The upfront payment may be submitted by wire transfer or cashier's check payable to the "Federal Communications Commission" or "FCC." Wire transfer instructions and the delivery address will be provided in the Bidder Package. Check(s) must be drawn on a bank whose deposits are insured by the Federal Deposit Insurance Corporation (FDIC). An applicant intending to bid on more than one nationwide narrowband license must submit an upfront payment of $350,000 per license for the maximum number of licenses on which it intends to bid in any single round of bidding. The upfront payment submitted by each applicant will define the maximum number of licenses on which the applicant will be permitted to bid in any single round of bidding. Narrowband PCS licensees will be permitted to aggregate up to three licenses. An applicant may apply for every license on its Form 175, but its actual bidding in any round will be limited to the number of licenses covered by the amount of its upfront payment. No later than seven (7) business days before the auction the Commission will issue a Public Notice announcing all qualified bidders for the nationwide narrowband PCS auction. Qualified bidders are those whose Form 175 applications have been accepted for filing and who have timely submitted their upfront payment. 8. Registration All qualified bidders or their designated representatives identified on Form 175 will be required to register for the auction. Registration will be held from 1:00 P.M. to 9:00 P.M. on Sunday, July 24, 1994 and from 8:00 A.M. to 9:30 A.M. on Monday July 25, 1994 at the Omni Shoreham Hotel at 2500 Calvert Street, N.W., Washington, D.C. A confidential bidder number will be assigned to each qualified bidder at registration. Further information regarding registration will be provided in the Bidder Package. All bidders will be required to bring two forms of identification, one form of photo identification (e.g., a valid drivers license or passport) and one additional form of identification. 9. Method of Competitive Bidding The winning bidders for the nationwide narrowband PCS licenses will be selected through a simultaneous multiple round auction. Bids will be accepted on all licenses in each round of the auction. High bid amounts will be posted at the end of each round of bidding. Bidding will remain open on all licenses until bidding closes on every license. Thus, bidding will stop simultaneously on all licenses. Bid Submission and Withdrawal Procedures All bidders or their representatives are required to be present at the auction site in order to place their bids. Each bidder will be required to provide its confidential bidder number and FCC account number in order to place or withdraw a bid. Bids will be placed with bid assistants on site who will input the bids into the auction database. All accepted bids for each license and the minimum bid increment for the next round will be announced at the conclusion of each bidding round. Bidders will have no less than one hour after accepted bids are posted to place their bids for the next round. A high bidder who wants to withdraw its high bid during the course of the auction may do so subject to the bid withdrawal penalty specified in the Third Report and Order at paras. 49-59. A high bidder who wants to withdraw its high bid should notify a bid assistant as soon as possible after its bid is posted as the high bid. If a high bid is withdrawn, the license will be offered in the next round at the second high bid price. Bid Increments The bid increment is the amount or percentage by which a bid must be raised above the previous high bid in order to be accepted as a valid bid in the current round. The minimum bid in the first round of bidding will be $.02 per pop per MHz (rounded down to the nearest $25,000). The bid increment in subsequent rounds will be $.01 per pop per MHz (rounded down to the nearest $25,000) or 5% of the previous high bid, whichever is greater. The amount of the minimum bid increment may be reduced in later rounds as the number of active bidders declines. The amount of the minimum bid increment for each license will be announced along with the accepted bids from the preceding round. The following table shows the amounts of the minimum bid increment for each category of license: Minimum Bid Increment License Category In the First Round After First Round* 50/50 kHz paired licenses $500,000 $250,000 50/12.5 kHz paired licenses $300,000 $150,000 50 kHz unpaired licenses $250,000 $125,000 *(or 5% of the previous high bid, whichever is greater) Activity Rule In order to ensure that the auction closes within a reasonable period of time, we will impose an activity rule to prevent bidders from waiting until the end of the auction before participating. Because of the relatively small number of licenses being offered in this auction we will impose a simplified version of the Milgrom-Wilson activity rule (discussed in the Third Report and Order at paras. 37-40). During the first stage of the auction bidders will be required to be active on at least one license in every round of bidding. A bidder will be considered active on a license if it either is the high bidder from the previous round or submits a bid which exceeds the previous round's high bid by at least the amount of the minimum bid increment. Bidders will be permitted five automatic waivers from the activity rule during the course of the auction. A bidder must notify a bid assistant of its intent to exercise one or more of its waivers at the time such bidder submits its next bid. Bidders in the first stage of the auction who fall below the required activity level and who have used all five of the automatic waivers will have their eligibility reduced to 0 and will not be eligible to bid in future rounds. See Third Report and Order at paras. 36-40. To speed up the auction the Commission may declare at any time after 15 rounds have passed that the auction will move into a final stage, with an increased activity level. If the Commission declares such an additional stage, bidders would be required to be active on the maximum number of licenses they desire to be awarded. In the final stage, bidders would have their eligibility reduced to the number of licenses on which they are active, unless they invoke an automatic waiver or waivers, in which case they would retain their current eligibility. Stopping Rules Bidding will remain open on all licenses until bidding stops on every license. The auction will close if one round passes with no new acceptable bids on any license. Thus, bidding will stop for all nationwide licenses simultaneously. The Commission, however, may declare at any time after 20 rounds that the auction will end after one additional round (or some other specified number of rounds). Bid Withdrawal, Default or Disqualification Penalty Any high bidder who withdraws a high bid in any round, defaults by failing to remit the required 20% down payment within the prescribed time or is disqualified after bidding is declared closed will be subject to a penalty described in Section 24.304 of the Commission's Rules. 47 C.F.R. sec. 24.304 Down Payment and Final Payment The winning bidder for each license must submit sufficient additional funds (a "down payment") to bring the amount of money on deposit with the government to 20% of their winning bid amount within five (5) business days after bidding is declared closed. Winning bidders that are qualified small businesses are required to submit only a 10% down payment within five (5) business days after bidding is closed, with an additional 10% due within five (5) business days after grant of the license. No interest will be paid on any funds on deposit with the Commission. 10. Long-Form Application (FCC Form 401) As detailed in the narrowband PCS and general auction rules, winning bidders must timely submit a properly completed FCC application for a narrowband PCS license (FCC Form 401) within ten (10) business days after being notified that they are the winning bidder. The Form 401 must be sent to: Office of the Secretary Federal Communications Commission 1919 M St., N.W., Room 222 Washington, D.C. 20554 Attention: Auction Application Processing Section After submission of the FCC Form 401, the Commission will determine whether there are any reasons why the license should not be granted; if there are none, it will grant the license. Winning bidders will be required to pay the remainder of the winning bid amount within five (5) business days after grant of the license. Qualified small businesses will be permitted to pay the remaining 80% of their winning bid amount in installments over the term of the license. See Third Report and Order at paras. 86-90. All license grants will be conditioned on timely payment in full of the bid price. 11. Delay, Suspension or Cancellation of the Auction The Commission may by Public Notice or announcement during the auction, delay, suspend or cancel the auction in the event of natural disaster, technical obstacle, evidence of an auction security breach, unlawful bidding activity, administrative necessity, or for any other reason that affects the fair and competitive conduct of competitive bidding. In such cases, the Commission may, in its sole discretion, resume the auction starting from the beginning of the current or some previous round or may cancel the auction in its entirety. -FCC- ------------------------- Bob Keller <KY3R> Robert J. Keller, P.C. Tel +1 301 229 5208 rjk () telcomlaw com Federal Telecommunications Law Fax +1 301 229 6875 finger me for daily FCC info + see ftp.clark.net:/pub/rjk/ for other files
Current thread:
- Auction Notice and Filing Requirements for 900 MHz PCS [anyone have a spare penny or so djf] David Farber (May 26)