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Auction 12

Cellular Unserved

DateAuction 12 began on
 and closed on
Round 36 (See DA 97-153)
Licenses14 licenses (13 Metropolitan Statistical Area (MSA)
1 Rural Service Area (RSA))
SpectrumBlock A: 869-880/824-835 MHz and 890-891.5/845-846.5 MHz
Block B: 880-890/835-845 MHz and 891.5-894/846.5-849 MHz
BandwidthBlock A: 25 MHz
Block B: 25 MHz
Total bandwidth: 50 MHz
Winning Bidders10 bidders won 14 licenses
Bidding Days6
Qualified Bidders22
Licenses Won14
Net Revenues
Net Bids$1,842,533.00
Gross Bids$1,842,533.00
General information and associated licensing parameters are provided below. Public Notices provide specific information regarding this auction. This fact sheet includes:

Key Dates

Form 175 (Short Form) Application Filing Deadline
12/16/1996; 5:30 pm ET
Upfront Payments Deadline (Wire Transfer)
12/16/1996; 6:00 pm ET
Upfront Payments Deadline (Cashiers Check)
12/16/1996; 11:59 pm ET
Orders for Remote Bidding Software
1/3/1997; 11:59 pm ET
Mock Auction
Auction Start
Auction Closed

Licenses Offered

A total of 14 licenses were offered in this auction, 13 Metropolitan Statistical Area (MSA) and 1 Rural Service Area (RSA). Thirteen of the initial 27 cellular unserved licenses were withdrawn from the auction process when no mutually exclusive applications existed for these licenses.
Participation was limited to those entities that previously filed an FCC Form 464 or 464-A. A list of cellular unserved licenses and those eligible to participate in the auction for each license was listed in Attachment A of public notice DA 96-1850.
Initial cellular operators were given a five-year period during which to expand their systems within the Metropolitan Statistical Areas (MSAs) and Rural Service Areas (RSAs) in which they were licensees. The cellular unserved areas were created from the geographic area not covered by the Cellular Geographic Service Area (CGSA) of each licensee at the close of the five-year build-out period.
There are two phases to the application processing scheme for all cellular markets. Phase I is a one-time process that provides an opportunity for entities to file competing applications for authority to operate a new cellular system in, or to expand an existing cellular system into, unserved areas. Phase II is an ongoing process that allows eligible parties to apply for any unserved areas that may remain after the Phase I process is complete.
In the past, the Commission conducted lotteries to resolve any mutually exclusive applications in Phase I or Phase II. With the addition of Section 309(j) to the Communications Act, the Commission was given express authority to use auctions to choose from among two or more mutually exclusive initial applications. The Ninth Report and Order in the competitive bidding docket adopted final auction rules to enable the Commission to complete the licensing of Phase I and Phase II cellular unserved licenses.

Licensing Rules

  1. Partitioning and/or Disaggregation permitted (see 47 C.F.R. § 22.948)
  2. No foreign ownership (see 47 C.F.R. § 22.5)
  3. Limitations on assignments and transfers (see 47 C.F.R. § 22.943)
  4. Spectrum cap limits

Permissible Operations

Licensees use cellular radiotelephone service (commonly referred to as cellular) spectrum to provide a mobile telecommunications service for hire to the general public using cellular systems. Cellular licensees may operate using either analog or digital networks, or both. Cellular licensees that operate digital networks may also offer advanced two-way data services. The Commission and other wireless industry representatives often refer to these services as "Mobile Telephone Services" and "Mobile Data Services."

License Period and Construction Requirements

Licenses are issued for ten-year term from the initial license grant date. Unserved area licensees must begin service to subscribers within one year after grant of their authorization. Failure to meet this requirement will result in termination of the authorization. Furthermore, an unserved area licensee cannot transfer its license until its system has provided service to subscribers for a least one year.

Bidding Credits

No bidding credits were offered in this auction.

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