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"  " ? ?" ? ?" ? ?" " ? ?  ?? ?  ?  ? ?!?!?!??!~???!?!????????????|??? ??  ???? ? ? ???????8?x?x? ? ??? ?? ?? ? ?? ? ? ?  ? ? ?  ??  ?  ?? 0? ?? 8 ?? 8?? ?? ??? ???   @ ? ? ? ! ?!$$?$?$??#??#?8?##?# ??# ?# ?% %~&''?''?'?'''?'*)*?*p*|*~*?*?*?À**?----CCC C ?C ?C E E E ?E E E ?EEEE?EDEEEG?GGG G G ?8 6 6 6 ?6? ?5 5 7 7 7       ?   ?  ?  ? ?? ?  ? ?  ? ?  ?? ??  ?? ??  ?? ??  ?? ?  ??   ?   ?   ?          ǀ      ?              ?  ? ? ?  ?? ? À8 ? ?         ?  ? ?   ?       ?  ?À   À      ??    ? ?? ?   ?    ?  ?  À    ??    ?  ?   ? ?           ?      ? ?        ?     >   ??       ?  ?          ?     ?   ?   ?            ?? ? ??  ? ?   ?            ?        ??  ?  ?    &  '  '        ?       ?            ??  ??  ? ? ?   ?    ?                        ?   ??   ?   ? ?ǀ   ?ǀ  ? ?À  ? ?À   ?À   ?À   ?         ?         ?  ?  π       ?   ?            ?  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WASHINGTON, D.C. 20554 News Media Information: (202) 4180500 FaxOnDemand: (202) 4182830 Internet: http://www.fcc.gov ftp.fcc.govЈyx dddy #Xj\  PG;XP#  DA 982604 December 23, 1998  #|\  PG;P# AUCTION OF C, D, E, AND F BLOCK BROADBAND PCS LICENSES Notice and Filing Requirements for Auction of C, D, E, and F Block Broadband Personal Communications Services Licenses Scheduled for March 23, 1999 Minimum Opening Bids and Other Procedural Issues #Xj\  PG;XP#Report No. AUC9822C (Auction No. 22) PD"1. INTRODUCTION ă This Public Notice announces the procedures and minimum opening bids for the upcoming auction (Auction No. 22) of broadband Personal Communications Services (PCS) spectrum in the C, D, E, and F blocks. On November 12, 1998, the Wireless Telecommunications Bureau ("Bureau") released a Public Notice,t#Xj\  PG;XP##X\  PG;P#эSee "C Block PCS spectrum Auction Scheduled for March 23, 1999; Comment Sought on Auction Procedural Issues," Public Notice, DA 982318 (rel. November 12, 1998) ("Procedural Public Notice I"); 63 FR 66,172 (December 1, 1998).t announcing its plans to establish minimum opening bids for the auction of C block spectrum in Auction No. 22, in accordance with the Balanced Budget Act of 1997.#Xj\  PG;XP##X\  PG;P#эSection 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). In addition, the Bureau sought comment on a number of procedures to be used in Auction No. 22.#Xj\  PG;XP##X\  PG;P#эProcedural Public Notice I at 412. On November 19, 1998, the Bureau released a second Public Notice,,0Í,0Í,0Í,0Í,0Í,0Í#Xj\  PG;XP##X\  PG;P#ÍSee "Additional Information Regarding Broadband PCS Spectrum Included in the Auction Scheduled for March 23, 1999; Comment Sought on Auction Procedural Issues," Public Notice, DA 982337 (rel. November 19, 1998) ("Procedural Public Notice II"); 63 FR 66,176 (December 1, 1998). providing additional and corrected information about Auction No. 22, including the addition of spectrum in the D, E, and F blocks. The Bureau received comments in response to one or both of the two procedural Public Notices from the following parties: Airadigm Communications, Inc. ("Airadigm"); Americana PCS L.L.C. ("Americana"); DiGiPH PCS, Inc. ("DiGiPH"); Mountain Solutions Ltd. ("Mountain Solutions"); Omnipoint Corporation ("Omnipoint");,0ÍÍ,0ÍÍ9#Xj\  PG;XP##X\  PG;P#эSee also Letter to Magalie Roman Salas, Secretary, Federal Communications Commission, from Mark J. O'Connor, Piper & Marbury, L.L.P., Counsel for Omnipoint Corporation (December 10, 1998) (describing substance of December 9, 1998 meeting, and enclosing written presentation made at that meeting, regarding minimum opening bid, bid increment, and bidding credit issues connected with the auction of C block licenses in Auction No. 22).9 and The Rural Telecommunications Group ("RTG").  Licenses to Be Auctioned:  The Federal Communications Commission ("FCC" or "Commission") will hold an auction, Auction No. 22, for 134 15MHz and 208 30MHz C block licenses, as well as for three D, six E, and five F block licenses. A list of the licenses that will be available in Auction No. 22 is included at Attachment A.  Auction Date:  The auction will begin on March 23, 1999. The initial schedule for bidding will be announced by public notice at least one week before the start of the auction. Unless otherwise announced, bidding will be conducted each business day and will continue until bidding has stopped on all licenses.  Auction Title:  Auction No. 22 (C, D, E, and F Block Broadband PCS).  Bidding Methodology:  Simultaneous multiple round bidding. Bidding will be permitted only from remote locations, either electronically (by computer) or telephonically.  PreAuction Deadlines:  X` hp x (#%'0*,.8135@8:X` hp x (#%'0*,.8135@8: The Bureau, however, cautions that merely filing a certifying statement as part of an application will not outweigh specific evidence that collusive behavior has occurred nor will it preclude the initiation of an investigation when warranted.,0Í,0Í0,0Í,0Í,0Í,0Í#Xj\  PG;XP##X\  PG;P#X` hp x (#%'0*,.8135@8:,0Í,0Í,0Í,0Í#Xj\  PG;XP##X\  PG;P#4 <DL!T$&)\+- 0d24ÍProcedural Public Notice I at 11; Procedural Public Notice II at 3. Two commenters discussed the stopping rule. DiGiPH supports our proposal to implement a modified simultaneous stopping rule. According to DiGiPH, it is likely that the only reason a bidder would increase its own standing high bids, absent any other bidding activity, would be to prevent the auction from closing and the triggering of certain postauction deadlines. DiGiPH believes that the modified simultaneous stopping rule would greatly reduce the likelihood of this sort of activity.?,0Í,0Í,0Í,0Í#Xj\  PG;XP##X\  PG;P#4 <DL!T$&)\+- 0d24ÍDiGiPH Comments at 4. RTG supports the proposed adoption of a special stopping rule, stating that it could save auction participants from needlessly expending costly resources. RTG also agrees that in many instances it would make sense "for the Bureau to take certain steps intended to increase the pace of the auction prior to invoking the special stopping rule." RTG suggests that it would serve the public interest for the Bureau to request bidder input during the auction on possible invocation of the special stopping rule.@,0Í,0Í,0Í,0Í#Xj\  PG;XP##X\  PG;P#4 <DL!T$&)\+- 0d24ÍRTG Comments at 13. Barring extraordinary circumstances, bidding will remain open on all licenses until bidding stops on every license. Thus, the auction will close for all licenses when one round passes during which no bidder submits a new acceptable bid on any license, applies a proactive waiver, or withdraws a previous high bid. In addition, however, the Bureau retains the discretion to close the auction for all licenses after the first round in which no bidder submits a proactive waiver, a withdrawal, or a new bid on any license on which it is not the standing high bidder. Thus, absent any other bidding activity, a bidder placing a new bid on a license for which it is the standing high bidder would not keep the auction open under this stopping rule procedure. We will notify bidders in advance of implementing any change to our simultaneous stopping rule. The Bureau retains the discretion, however, to keep an auction open even if no new acceptable bids or proactive waivers are submitted, and no previous high bids are withdrawn. In this event, the effect will be the same as if a bidder had submitted a proactive waiver. Thus, the activity rule will apply as usual, and a bidder with insufficient activity will either lose bidding eligibility or use an activity rule waiver (if it has any left). Further, in its discretion, the Bureau reserves the right to declare that the auction will end after a specified number of additional rounds ("special stopping rule"). If the FCC invokes this special stopping rule, it will accept bids in the final round(s) only for licenses on which the high bid increased in at least one of the preceding specified number of rounds. The FCC intends to exercise this option only in extreme circumstances, such as where the auction is proceeding very slowly, where there is minimal overall bidding activity, or where it appears likely that the auction will not close within a reasonable period of time. Before exercising this option, the FCC is likely to attempt to increase the pace of the auction by, for example, moving the auction into the next stage (where bidders would be required to maintain a higher level of bidding activity), increasing the number of bidding rounds per day, and/or increasing the amount of the minimum bid increments for the limited number of licenses where there is still a high level of bidding activity. Given the extreme circumstances under which the Bureau intends to invoke the special stopping rule, the Bureau has decided not to adopt RTG's suggestion that we routinely request bidder input prior to such invocation. However, we remind bidders that they are free to make their views known to the Bureau throughout the auction and that the Suggestion Box in the Automated Auction System affords them one possible avenue of communication.A,0Í,0Í,0Í,0Í#Xj\  PG;XP##X\  PG;P#4 <DL!T$&)\+- 0d24ÍPrior to the point where longform applications are filed and formally opposed, mutually exclusive applicants in auction proceedings may communicate with the Commission concerning their applications, so long as the application has not become subject to ex parte restrictions for some other reason, e.g., the applicant has filed a waiver request that has been formally opposed. Amendment of 47 C.F.R.  1.1200 et seq. Concerning Ex Parte Presentations in Commission Proceedings, Report and Order, 12 FCC Rcd 7348, 7356 para. 24 (1997); 47 C.F.R.  1.1202(d) note (1).  (7) Auction Delay, Suspension, or Cancellation In Procedural Public Notice I and II, we proposed that, by public notice or by announcement during the auction, the Bureau may delay, suspend, or cancel the auction in the event of natural disaster, technical obstacle, evidence of an auction security breach, unlawful bidding activity, administrative or weather necessity, or for any other reason that affects the fair and competitive conduct of competitive bidding.B,0Í,0Í,0Í,0Í#Xj\  PG;XP##X\  PG;P#4 <DL!T$&)\+- 0d24ÍProcedural Public Notice I at 1112; Procedural Public Notice II at 3. DiGiPH filed the only comment regarding this proposal, suggesting that if it becomes necessary to restart the auction for breaches of auction security or other anticompetitive reasons, the Commission should initiate a brief comment cycle to determine an appropriate method of restarting the auction. DiGiPH further states that, where anticompetitive conduct is concerned, it would be useful for the Commission to gather information from auction participants in order to measure the impact of such conduct and to determine how to restart the auction.C,0Í,0Í,0Í,0Í#Xj\  PG;XP##X\  P G;P#4 <DL!T$&)\+- 0d24ÍDiGiPH Comments at 45. Because the auction cancellation rules we proposed have proven effective in resolving exigent circumstances in previous auctions, we will adopt them for Auction No. 22. By public notice or by announcement during the auction, the Bureau may delay, suspend, or cancel the auction in the event of natural disaster, technical obstacle, evidence of an auction security breach, unlawful bidding activity, administrative or weather necessity, or for any other reason that affects the fair and competitive conduct of competitive bidding. In such cases, the Bureau, in its sole discretion, may elect to: resume the auction starting from the beginning of the current round; resume the auction starting from some previous round; or cancel the auction in its entirety. Network interruption may cause the Bureau to delay or suspend the auction. We emphasize that exercise of this authority is solely within the discretion of the Bureau, and its use is not intended to be a substitute for situations in which bidders may wish to apply their activity rule waivers. We believe that DiGiPH's suggestion that we seek comment prior to restarting the auction would unduly restrict the Bureau's discretion and flexibility in conducting the auction, and we decline to adopt it. We will, however, provide bidders with reasonable notice either by public notice or by announcement over the Automated Auction System prior to recommencing the auction. As stated, bidders may make their views known to the Bureau throughout the auction and, if they choose, may use the Suggestion Box in the Automated Auction System for such communication.D,0Í,0Í,0Í,0Í#Xj\  P!G;XP##X\  P"G;P#4 <DL!T$&)\+- 0d24ÍSee supra note 65. B. Bidding Procedures  (1) Round Structure The initial bidding schedule will be announced by public notice at least one week before the start of the auction, and will be included in the registration mailings. The round structure for each bidding round contains a single bidding round followed by the release of the round results.   The FCC has discretion to change the bidding schedule in order to foster an auction pace that reasonably balances speed with the bidders' need to study round results and adjust their bidding strategies. The FCC may increase or decrease the amount of time for the bidding rounds and review periods, or the number of rounds per day, depending upon the bidding activity level and other factors.  (2) Reserve Price or Minimum Opening Bid In Procedural Public Notice I, the Bureau proposed to establish as the minimum opening bid for each 15 MHz C block license available in Auction No. 22 an amount equal to five percent of the most recent net high bid for the corresponding 30 MHz license,)E,0Í,0Í,0Í,0Í#Xj\  P#G;XP##X\  P$G;P#4 <DL!T$&)\+- 0d24ÍBy "most recent," we mean that if the license for a particular band of spectrum was auctioned in Auction No. 10 (which concluded on July 16, 1996), the Bureau will use the net high bid for the license in Auction No. 10, rather than the net high bid for authorization to use that same band in the original C block auction, Auction No. 5, as the basis for calculating the minimum opening bid.) but in no event lower than the upfront payment amount for that license in Auction No. 22.F,0Í,0Í,0Í,0Í#Xj\  P%G;XP##X\  P&G;P#4 <DL!T$&)\+- 0d24ÍProcedural Public Notice I at 24. For 15 MHz licenses with minimum opening bids that would otherwise be lower than upfront payment amounts, the Bureau proposed to establish minimum opening bids that equal the upfront payment amounts. The Bureau stated that for each 30 MHz license available in Auction No. 22, the Bureau plans to establish a minimum opening bid equal to ten percent of the most recent corresponding net high bid for the license, but in no event lower than the upfront payment amount for that license in Auction No. 22. For 30 MHz C block licenses with minimum opening bids that would otherwise be lower than upfront payment amounts, the Bureau said that it plans to establish minimum opening bids that equal the upfront payment amounts.,0ÍÍ,0ÍÍ8GX` hp x (#%'0*,.8135@8:G;XP##X\  P?G;P#эX4 p x (#%'0*,.8135@8: DialUp Adapter and click Properties. 666d.444Click the DNS Configuration tab. 666e.444Select Enable DNS. Type bidder in the Host box, type fcc.gov in the Domain box, then type 165.135.22.249 in the DNS Server Search Order box and click the Add button. 666f.444Click OK on the TCP/IP Properties windows, then click OK on the Network windows. 666g.444If you are prompted to restart your computer, click Yes to restart, then begin the DialUp Procedure. #Xw Pr7XP# 2"#  Ps7 P#DialUp Procedure#Xw Pt7XP# ă 1.666If the DialUp Networking window is not currently open, do the following: 666a.444Click the Windows 95/98 Start button. 666b.444Click the Programs option to display the Programs menu. 666c.444Click the Accessories option to display the Accessories menu. 666d.444In Windows 95, click DialUp Networking 666444In Windows 98, click Communications , then DialUp Networking . 666The DialUp Networking window appears. 2.666In the DialUp Networking window, doubleclick the FCC Auctions 800# or FCC Auctions 900# icon. 666 Note : If you connect to the FCCs 900 number telephone service, there is a charge of (#(#K$2.30 per minute. The first minute of connection time to the 900 number service is at no charge. 3.666Click the Connect button on the window. Do not enter User name and Password. 666The Connection window appears, indicating the status of your connection as your modem dials into the system. This window must remain running during your dialup session. You may minimize the window, if you wish. 666If your modem fails to establish a connection, please see the Troubleshooting section below. 4.666Once the connection is established, open your Web browser. 5.666In your browsers Location field, enter the appropriate Universal Resource Locator (URL) as follows: 66  " "For FCC Form 175 Submit, enter http://wtbwww04.fcc.gov 66 66  " "For FCC Form 175 Review or the FCC Remote Access System, enter http://wtbwww03.fcc.gov 666If nothing appears in your Web browser, please see the Troubleshooting section below. 6.666When you have finished, exit the Web browser, then click the Disconnect button on the Connection window to end your dialup session. ##  Pu7 P#Troubleshooting#Xw Pv7XP# ă Following are problems you may encounter and possible solutions for resolving or isolating them.  Modem does not respond  1.66 Confirm that all physical connections for the modem are present. 2.66 Confirm that the phone line is active by connecting it to a telephone and checking for a (#(#(#dialtone. 3.666If you are dialing the 900 number service, check for a 900 number telephone block. If the volume settings are low, the modem may be dialing but not connecting. Check for this by trying to connect to the 800 number, or by dialing the 900 number on that line using a telephone. 4.666Confirm that the correct modem driver is installed for your modem.  Modem dials but does not connect  1.666If you are dialing the 900 number service, check for a 900 number telephone block. Check for this by dialing the 800 number to see if you connect, or by dialing the 900 number on that line using a telephone. 2.666Confirm that the number the modem is dialing is correct. 3.66 Confirm that the modem prefix, if any, is correct.  Modem dials and connects, but nothing appears when you enter the Location in the Web browser  1.666Verify the DialUp Networking settings specified in the Configuring DialUp Networking section. X` hp x (#%'0*,.8135@8: