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WASHINGTON, D.C. 20554 #UxPY7P#News Media Information: (202) 4180500 FaxOnDemand: (202) 4182830 Internet: http://www.fcc.gov ftp.fcc.govyx dddy  #XfxPZ7XP#DA 98162 January 30, 1998#UxP[7P# #Xj\  P\G;XP#  #|\  P]G;P#COMMENT SOUGHT ON RESERVE PRICES OR MINIMUM OPENING BIDS FOR THE GENERAL WIRELESS COMMUNICATIONS SERVICE (GWCS) IN THE 46604685 MHz BAND #Xj\  P^G;XP# Formula Proposed for May 27 GWCS Auction  Report No. AUC-9819A (Auction No. 19) I. Reserve Price or Minimum Opening Bid The Balanced Budget Act of 1997 calls upon the Commission to prescribe methods by which a reasonable reserve price will be required or a minimum opening bid established when FCC licenses are subject to auction (i.e., because they are mutually exclusive), unless the Commission determines that a reserve price or minimum bid is not in the public interest.,0Í,0Í#x*0 x_7##Xw P`7XP#Í#c Pa7P#Section 3002(a), Balanced Budget Act of 1997, Pub. L. 10533, 111 Stat. 251 (1997) ("Budget Act"); 47 U.S.C.  309(j)(4)(F). The Commission's authority to establish a reserve price or minimum opening bid is set forth in 47 C.F.R.  1.2104(c) and (d). Consistent with this mandate, the Commission has directed the Wireless Telecommunications Bureau ("Bureau") to seek comment on the use of a minimum opening bid and/or reserve price prior to the start of each auction.%#x*0 xb7##X\  PcG;P#ÍSee In the Matter of Amendment of Part 1 of the Commission's Rules Competitive Bidding Procedures, Allocation of Spectrum Below 5 GHz Transferred from Federal Government Use, 46604685 MHz, WT Docket No. 9782, ET Docket No. 9432, FCC 97413, Third Report and Order and Second Further Notice of Proposed Rule Making (rel. December 31, 1997) at  141 ("Part 1 Third Report and Order and Second FNPRM").% The Bureau was directed to seek comment on the methodology to be employed in establishing each of these mechanisms. Among other factors, the Bureau should consider the amount of spectrum being auctioned, levels of incumbency, the availability of technology to provide service, the size of the geographic service areas, the extent of interference with other spectrum bands, and any other relevant factors that could reasonably have an impact on valuation of the spectrum being auctioned. The Commission concluded that the Bureau should have the discretion to employ either or both of these mechanisms for future auctions.#x*0 xd7##X\  PeG;P#ÍId. 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. It is generally used to accelerate the competitive bidding process. Also, in a minimum opening bid scenario, the auctioneer generally has the discretion to lower the amount later in the auction. The Bureau recently announced the auction of 875 licenses for the General Wireless Communications Service which is scheduled to begin May 27, 1998.#x*0 xf7##X\  PgG;P#ÍSee Public Notice, "FCC Announces Spectrum Auction Schedule for the General Wireless Communications Service," DA 972634 (rel. December 17, 1997) ("GWCS Schedule Notice") and Public Notice, "Auction Schedule for the General Wireless Communications ServiceCorrection," DA 972662 (rel. December 19, 1997).  These licenses encompass the United States, the Northern Mariana Islands, Guam, American Samoa, the United States Virgin Islands and Puerto Rico. Specifically, the licenses include: (1) five licenses in each of 172 geographic areas known as Economic Areas (EAs); (2) five licenses in each of three EAlike areas, covering Guam and the Northern Marianas, Puerto Rico and the U.S. Virgin Islands, and American Samoa.#x*0 xh7##X\  PiG;P#ÍSee 47 C.F.R.  26.102 (service areas). In anticipation of this auction and in light of the Balanced Budget Act, the Bureau proposes to establish minimum opening bids for the GWCS auction, and retain discretion to lower the minimum opening bids. The Bureau believes a minimum opening bid, which has been utilized in other auctions,#x*0 xj7##X\  PkG;P#ÍSee In the Matter of Auction of 800 MHz SMR Upper 10 MHz Band, Minimum Opening Bids or Reserve Prices, DA 972147, Order (rel. October 6, 1997); In the Matter of Revision of Rules and Policies for the Direct Broadcast Satellite Service, IB Docket No. 95168, PP Docket No. 93253, Report and Order, 11 FCC Rcd 9712, 97879788,  186 (1995). is an effective bidding tool, and we propose to use this approach in the GWCS auction. A minimum opening bid will help to regulate the pace of the auction and provides flexibility. Specifically, the Commission proposes the following formula for calculating minimum opening bids in Auction No. 19: For each EA License, the minimum opening bid = $0.0030 x 5 MHz x population (based on 1990 census) with a minimum of no less than $2500.00 per license. See Attachment B. Comment is sought on this proposal. If commenters believe that the formula proposed above for minimum opening bids will result in substantial numbers of unsold licenses, or is not a reasonable amount, or should instead operate as a reserve price, they should explain why this is so, and comment on the desirability of an alternative approach. Commenters are advised to support their claims with valuation analyses and suggested reserve prices or minimum opening bid levels or formulas. In establishing the formula for minimum opening bids, we particularly seek comment on such factors as, among other things, the amount of spectrum being auctioned, levels of incumbency, the availability of technology to provide service, the size of the geographic service areas, issues of interference with other spectrum bands and any other relevant factors that could reasonably have an impact on valuation of the GWCS spectrum.#x*0 xl7#Í#X\  PmG;P#In order to assist them in their evaluation, interested parties are advised to review Attachment A to this Public Notice. This Attachment contains information provided to the Commission by the National Telecommunications and Information Administration. It describes certain government operations that operate in the bands adjacent to GWCS spectrum and may cause interference in some regions.  Alternatively, comment is sought on whether, consistent with the Balanced Budget Act, the public interest would be served by having no minimum opening bid or reserve price. II. Other Issues The Bureau finds that seeking comment on other auctionrelated procedures for GWCS, prior to resolution of the issues raised in the Part 1 Third Report and Order and Second Further Notice of Proposed Rule Making,#x*0 xn7##X\  PoG;P#ÍSee Part 1 Third Report and Order and Second FNPRM at  192194. would be premature. Additionally, certain issues (such as the upfront payment formula and competitive bidding design) were determined by the Commission in the 1995 GWCS Second Report and Order& #x*0 xp7##X\  PqG;P#ÍSee Allocation of Spectrum Below 5 GHz Transferred from Federal Government Use, ET Docket No. 9432, Second Report and Order, 11 FCC Rcd 624 at 65054, 71617.& and may be further addressed by the Commission. Because the Commission is subject to a statutory deadline of August 9, 1998, for licensing GWCS, #x*0 xr7##X\  PsG;P#ÍSee 47 U.S.C.  309(j)(9). there is insufficient time to seek comment on auction procedures after a ruling by the Commission. Rather, the Bureau finds that in these circumstances, it is in the public interest to maximize the time available to bidders between announcement of auction procedures and the start of the auction. Therefore, the Bureau will announce specific bidding procedures by public notice upon the release of the GWCS auction rules. III. Conclusion Comments are due on or before February 13, 1998, and reply comments are due on or before February 20, 1998. To file formally, parties must submit an original and four copies to the Office of the Secretary, Federal Communications Commission, Room 222, 1919 M Street N.W., Washington, DC 20554. In addition, parties must submit one copy to Kathleen O'Brien Ham, Chief, Auctions and Industry Analysis Division, Wireless Telecommunications Bureau, Federal Communications Commission, Room 5202, 2025 M Street N.W., Washington, D.C. 20554. Comments and reply comments will be available for public inspection during regular business hours in the FCC Public Reference Room, Room 239, 1919 M Street N.W., Washington, D.C. 20554. For further information concerning this proceeding, contact Kathryn Garland, Bob Reagle, or Arthur Lechtman, Auctions and Industry Analysis Division, Wireless Telecommunications Bureau, at (202) 4180660.  - FCC -    8H    #x6X@t7X@#ATTACHMENT A Technical Data on the Navy Cooperative Engagement Capability (CEC) System I.INTRODUCTION The purpose of this annex is to describe the technical characteristics of the Cooperative Engagement Capability (CEC) Data Distribution System. The CEC, a major new networking system being developed by the military to provide connectivity between air, land, and sea units for Theater Air Defense, will operate in the bands immediately adjacent to the 46354685 MHz band. In order to minimize mutual interference between the CEC system and prospective GWCS users, certain CEC technical characteristics are being made available so that GWCS equipment can be designed to reduce susceptibility to interference. While details of the overall CEC program will remain unavailable for public release, the technical parameters as described below have been recently declassified to facilitate the release of this basic data. (The point of contact at the Naval Electromagnetic Spectrum Center is Mr. Scott A. Hoschar, at (202) 7640312, or fax (202) 7642666. The CEC Program Office point of contact is Ms. Lalitha Avula, PEO(TAD)CB12, at (703) 6027413, or fax (703) 6029181.) II.TECHNICAL PARAMETERS The CEC operates in the bands above and below the 46354685 band. In order to comply with NTIA regulations, the CEC authorized bandwidth will be contained wholly within the adjacent Federal bands so that it does not impinge upon the 46354685 MHz band. To achieve this, the center frequency of any CEC transmitted signal will not fall within the range 4624 to 4696 MHz. The CEC system employs high power transmitters with directional antennas to achieve a maximum e.i.r.p. of 58 dBW (630 kW). Under most deployment scenarios, this maximum e.i.r.p. level will be directed towards the operational areas defined below or out to sea. However, under certain conditions, this maximum e.i.r.p. value may be directed at the horizon and inland from aircraft operating in the areas defined below. The CEC emission characteristic was designed to be spectrally efficient to exceed NTIA requirements for unwanted emissions. Specific spectral parameters are as follows: CEC Spectrum Rolloff Characteristics at 46354685 MHz xxA Lower Band EdgehhhUpper Band Edge  < Frequency PowerhhhFrequencypp2Power (MHz) (dBW/4kHz)(MHz)pp2(dBW/4kHz) 4635.00 3.8hhh4685.00pp23.8 4636.10 7.8hhh4683.90pp27.87 4643.95 17.8hhh4676.05pp217.8 4653.00 37.8hhh4667.00pp237.8  <xxA Transmitter Noise: Between 4649.6 and 4670.4 MHz, less than 87 dBW/Hz ` hp x (# Harmonics and Spurious : hhhLess than 80 dBc770Í0Í, that is, dB below carrier power. III.OPERATING AREAS The location in which large numbers of CEC nodes will be operating includes a number of Naval/joint military exercise areas. CEC units will be located on ships and aircraft, and at land based sites. The normal operating areas are coastal waters and the contiguous land mass extending 30 nautical mile inland. The operating altitude of CECequipped aircraft will typically extend to 35,000 feet. COOPERATIVE ENGAGEMENT CAPABILITY OPERATING AREA DESCRIPTIONS Eight areas are identified as essential to support training with a large number of Cooperating Units in a CEC network. The significance of these areas is that airborne CEC units with high power transmitters are expected to be flown directly overhead and extending out to sea in and around existing military operational areas. The areas are as follows. (1)The area extending 30 nautical miles (nm) inland from the Atlantic Ocean between Wilmington, North Carolina (NC) and Lewes, Delaware (DE) facilitate Atlantic Fleet exercises. The land based CEC terminals at Wallops Island, Virginia (VA), Eastville, VA, and Dam Neck, VA are within the boundaries established for the Atlantic Fleet exercises. The Cherry Point and Onslow Bay NC areas are also included. The Naval Air Warfare Center at Patuxent River, Maryland (MD) and facilities at Greenville, South Carolina (SC), Jacksonville, Florida (FL), and St. Petersburg, FL are not included in the inland areas. The exclusion of the four sites does not preclude CEC Radio Frequency (RF) emissions at these sites. (2)The area extending 30 nm inland from the Gulf of Mexico between the Louisiana (LA)Mississippi (MS) state border and Panama City, FL, to support Gulf of Mexico exercises. The area includes Gulfport and Biloxi, MS, and Pensacola and Eglin AFL, FL. (3)The area extending 30 nm inland from the Pacific Ocean between Vandenberg Air Force Base, California (CA) and Point Mugu Naval Air Station, CA, to support Pacific Fleet exercises. (4)The area extending 30 nm inland from the Pacific Ocean between Newport Beach, CA, and the CAMexico international border to support Pacific Fleet exercises. The area includes Camp Pendleton, CA. (5)The area that includes the White Sands Missile Range, New Mexico (NM) and the Fort Bliss Military Reservation, Texas (TX) and NM to support the joint Chiefs of Staff Roving Sands Exercise. (6)The area that includes the China Lake Naval Weapons Center and the Fort Irwin Military Reservation, CA. (7)All of Hawaii, including the Pacific Missile Range Facility. (8)All of Puerto Rico, including the Armed Forces Weapons Test Facility. Potentially Affected Economic Areas The following Economic Areas appear to be within the parameters defined by the Navy as being potentially affected by the CEC system. Estimated power levels within the 46354685 MHz band should be calculated on the basis of range from the boundaries of the CEC operating areas and the technical parameters given above. #Xj\  PuG;XP# D #\  PvG;P#Cooperative Engagement Capability Impacted Economic Areas#Xj\  PwG;XP#у T ddx" " ddx" "T c c Economic AreaNameEconomic Area Groupingq q 3Boston-Worcester-Lawrence-Lowell-Brockton, MA-NH-RI-VT1q q 5Albany-Schenectady-Troy, NY1q q 6Syracuse, NY-PA1q q 7Rochester, NY-PA1q q 8Buffalo-Niagara Falls, NY-PA1q q 9State College, PA1q q 10New York-No. New Jer.-Long Island, NY-NJ-CT-PA-MA-VT1q q 11Harrisburg-Lebanon-Carlisle, PA1q q 12Philadelphia-Wilmington-Atl. City, PA-NJ-DE-MD2q q 13Washington-Baltimore, DC-MD-VA-WV-PA2q q 14Salisbury, MD-DE-VA2q q 15Richmond-Petersburg, VA2q q 16Staunton, VA-WV2q q 17Roanoke, VA-NC-WV2q q 18Greensboro-Winston-Salem-High Point, NC-VA2q q 19Raleigh-Durham-Chapel Hill, NC2q q 20Norfolk-Virginia Beach-Newport News, VA-NC2q q 21Greenville, NC2q q 22Fayetteville, NC2q q 23Charlotte-Gastonia-Rock Hill, NC-SC2q q 24Columbia, SC2q q 25Wilmington, NC-SC2q q 26Charleston-North Charleston, SC2q q 27Augusta-Aiken, GA-SC3q q 28Savannah, GA-SC3q q 29Jacksonville, FL-GA3q q 30Orlando, FL3q q 33Sarasota-Bradenton, FL3q q 34Tampa-St. Petersburg-Clearwater, FL3q q 35Tallahassee, FL-GA3q q 36Dothan, AL-FL-GA3q q 37Albany, GA3q q 38Macon, GA3q q 39Columbus, GA-AL3q q 40Atlanta, GA-AL-NC3q q 41Greenville-Spartanburg-Anderson, SC-NC2q q 42Asheville, NC2q q 45Johnson City-Kingsport-Bristol, TN-VA2q q 46Hickory-Morganton, NC-TN2q q 47Lexington, KY-TN-VA-WV2q q 48Charleston, WV-KY-OH2q q 53Pittsburgh, PA-WV2q q 54Erie, PA1q q 73Memphis, TN-AR-MS-KY3q q 74Huntsville, AL-TN3q q 75Tupelo, MS-AL-TN3q q 76Greenville, MS3q q 77Jackson, MS-AL-LA3q q 78Birmingham, AL3q q 79Montgomery, AL3q q 80Mobile, AL3q q 81Pensacola, FL3q q 82Biloxi-Gulfport-Pascagoula, MS3q q 83New Orleans, LA-MS3q q 84Baton Rouge, LA-MS3q q 85Lafayette, LA3q q 86Lake Charles, LA3q q 87Beaumont-Port Arthur, TX5q q 88Shreveport-Bossier City, LA-AR3q q 89Monroe, LA3q q 90Little Rock-North Little Rock, AR3q q 122Wichita, KS-OK5q q 126Western Oklahoma, OK5q q 127Dallas-Fort Worth, TX-AR-OK5q q 128Abilene, TX5q q 129San Angelo, TX5q q 131Houston-Galveston-Brazoria, TX5q q 135Odessa-Midland, TX5q q 136Hobbs, NM-TX5q q 137Lubbock, TX5q q 138Amarillo, TX-NM5q q 139Santa Fe, NM5q q 140Pueblo, CO-NM5q q 141Denver-Boulder-Greeley, CO-KS-NE5q q 151Reno, NV-CA6q q 152Salt Lake City-Ogden, UT-ID5q q 153Las Vegas, NV-AZ-UT6q q 154Flagstaff, AZ-UT5q q 155Farmington, NM-CO5q q 156Albuquerque, NM-AZ5q q 157El Paso, TX-NM5q q 158Phoenix-Mesa, AZ-NM5q q 159Tucson, AZ5q q 160Los Angeles-Riverside-Orange County, CA-AZ6q q 161San Diego, CA6q q 162Fresno, CA6q q 163San Francisco-Oakland-San Jose, CA6q q 164Sacramento-Yolo, CA6q q 172Honolulu, HI6    174Puerto Rico and the U.S. Virgin Islands3