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WASHINGTON, D.C. 20554X@,,,3LpH!8 X  ~J:-3#[2PG;<P#News Media Information: (202) 4180500 YFaxOnDemand: (202) 4182830 +Internet: http://www.fcc.gov M% ftp.fcc.gov~,,,&$:v,,3LpH!8 ~ԯ Z(#Uyx dddhxy  Xr-#Xj\  P6G;ynXP#  X[-=) DA 97 1933 #"September 5, 1997  X- -(#U (# (#U  a <u#Xj\  P6G;ynXP# #|\  P6G;_P#COMMENT SOUGHT ON BALANCED BUDGET PROVISIONS  a <_CALLING FOR RESERVE PRICES OR MINIMUM OPENING BIDS  %#P   a< %#P IN FCC AUCTIONS lU  ^< 800 MHz Auction Formula Proposed#|\  P6G;_P#ĐlU  X$- #Xj\  P6G;ynXP#Report No. AUC16E (Auction No. 16)  X-When FCC licenses are subject to auction (i.e, because they are mutually exclusive) the recently enacted Balanced Budget Act of 1997 calls upon the Commission to prescribe methods by which a reasonable reserve price is required or minimum opening bid established,  X-unless it determines that such an assessment is not in the public interest. yO,-#X\  P6G;ɒP#эBalanced Budget Act of 1997, Pub. Law 10533, __ Stat. __ (1997); 47 U.S.C.  309(j)(4)(F).#` 2pPG;9` # The Wireless Telecommunications Bureau recently announced the auction of 525 licenses in the upper 10 MHz of the 800 MHz Specialized Mobile Service (SMR), which is to begin October 28,  Xn-1997. In anticipation of that auction, and in light of the recently adopted legislation, it is proposed that a reserve price or minimum opening bid be established. Specifically, it is proposed that in no event should any of the licenses in the 800 MHz auction be sold for less than the value of the upfront payment amounts specified for the  X-licenses in the Public Notice released August 6, 1997 for that auction.hcX {O#- #X\  P6G;ɒP#эSee Public Notice, "Auction of 800 MHz Specialized Mobile Radio Service Licenses," DA 971672 (rel. August 6, 1997). The upfront payment amounts are set forth in Attachment A to this Notice.  f&&#` 2pPG;9` #h The upfront payments for the 800 MHz SMR auction are based on a $0.02 per MHz-POP formula, as was used in ,,, eLpH!8  '#  h&'()*+,-  X-the 900 MHz SMR auction.;u1 {Oy- >#X\  P6G;ɒP#эSee Public Notice, "FCC Announces Auction of 900 MHz Specialized Mobile Radio Service," Report No.  yOC-AUC9507, Auction No. 7 (rel. September 15, 1995).#X\  P6G;ɒP#; The $0.02 MHzPOP has been discounted for each Economic Area by 75 percent, with a floor of $2,500, to account for the degree of incumbency for this service. Under this formulation, the minimum amount is $2,500 and the maximum amount is $717,571. Comment is sought on this proposal. Parties should also comment on whether the upfront payment should be considered a reserve price or a minimum opening bid for this auction. Normally, a reserve price is an absolute minimum price below which an item will not be sold in a given auction. Reserve prices can be either published or unpublished. A minimum opening bid, on the other hand, is the minimum bid price set at the beginning of the auction below which no bids are accepted. In a minimum opening bid scenario, the auctioneer often has the discretion to lower it later in the auction. Furthermore, commenters should also address whether the amount of the reserve price or minimum opening bid should be capped to ensure that bidding is not deterred on high valuation markets, in particular. For example, a cap of $250,000 could be applied. Finally, if commenters believe that a reserve price or minimum opening bid equal to the upfront payment will result in substantial unsold licenses, or is not a reasonable amount, they should explain why this is so, and comment on the desirability of a reserve price or minimum opening bid greater or less than the upfront payment.  X-Comments are due on or before September 12, 1997 . To file formally, parties must file and original and four copies. Parties may send comments to the Chief, Auctions and Industry Analysis Division, Wireless Telecommunications Bureau, Federal Communications Commission, Room 5202, 2025 M Street, N.W., Washington, D.C. 20554. Comments will be available for public inspection during regular business hours in the FCC Reference Center of the Federal Communications Commission, Room 239, 1919 M Street, N.W., Washington, D.C. 20554. For further information concerning this proceeding, contact Alice Elder at the Auctions and Industry Analysis Division, Wireless Telecommunications Bureau at (202) 4180660.  X FCC lU