General information and associated licensing parameters are provided below. Public Notices provide specific information regarding this auction. This fact sheet includes:

Competitive bidding was used to assign this spectrum to Guard Band Managers. The Guard Band Manager is a new class of commercial licensee engaged solely in the business of leasing spectrum to third parties on a for-profit basis. The Guard Band Manager may subdivide its spectrum in any manner it chooses and make it available to system operators, or directly to end users for fixed or mobile communications. The Guard Band Manager is required to adhere to strict frequency coordination and interference rules, and control use of the spectrum so as to facilitate protection for public safety

A total of 104 licenses were offered in each of 52 Major Economic Areas (MEAs). Each MEA will consist of one 4 megahertz license (consisting of paired 2 MHz blocks) and one 2 megahertz license (consisting of paired 1 MHz blocks).

By Congressional direction, the Commission reallocated thirty-six megahertz of spectrum for commercial use including fixed, mobile, and broadcasting services. Six of the thirty- six megahertz were identified as Guard Bands to provide protection to public safety users. Guard band equipment must meet ACCP OOBE criteria and guard band users must comply with frequency coordination procedures. Entities that employ a cellular system architecture are prohibited from operating in this band.

In light of continued use of this spectrum by broadcasters until 12/31/2006 or later, licenses are issued for a total of approximately 14 years. The expiration date is extended eight years beyond the date which incumbent broadcasters are required to have relocated to other portions of the spectrum, that is, until 1/1/2015. However, if a licensee commences new broadcast-type operations on or before 1/1/2006, the licensee is required to seek renewal of its license at the end of the eight-year term following commencement of such broadcast operations. All licensees meeting the substantial service requirement (see First Report and Order, WT99-168, ¶ 70, released 1/7/2000) will be deemed to have met renewal expectancy regardless of which construction options the licensee chose.

Under the amended performance requirement, a licensee must provide "substantial service" to its service area no later than January 1, 2015 (See 27.14(a) of the Commission's Rules). A Guard Band Manager may satisfy the substantial service requirement by leasing the predominant amount of its licensed spectrum in at least 50 percent of the geographic area covered by its license or by providing coverage to 50 percent of the population of its service area at the license-renewal mark

Guard Band Managers are also required to file an annual report providing the Commission with basic information such as the total number of users, the number of users that are affiliates, amount of spectrum being used by each, nature of use, term of user agreements, etc. Guard Band Managers must file these reports on-line at 700 MHz Guard Band Manager Reports.

The 700 MHz spectrum is presently encumbered by approximately 100 existing television stations, and it may remain so, to some extent, until 12/31/2006 or later. No part of the country is totally unencumbered in this band, and in some metropolitan areas, very little of this band is presently available. New geographic area licensees operating on this spectrum must comply with the co-channel and adjacent channel protection provisions of Section 90.545 of the Commission's Rules. See 47 C.F.R. sectioon 90.545.

Bidding credits are available to small and very small businesses (or consortia of small or very small businesses) as set forth in 47 C.F.R. § 27.502. A bidding credit represents the amount by which a bidder's winning bids are discounted. The size of the bidding credit depends on the average gross revenues for the preceding three years of the bidder and its controlling interests and affiliates:

• A bidder with average gross revenues of not more than $40 million for the preceding three years receives a 15 percent discount on its winning bids for Upper 700 MHz Guard Bands manager licenses ("small business");
• A bidder with average gross revenues of not more than $15 million for the preceding three years receives a 25 percent discount on its winning bids for Upper 700 MHz Guard Bands manager licenses ("very small business").

Bidding credits are not cumulative. A qualifying applicant receives either the 15 percent or 25 percent bidding credit, but not both

• There are no eligibility restrictions.
• Guard Band Managers and their affiliates are limited to holding only one of the two licenses available in a geographic service area.
• Guard Band Mangers must lease no more than 49.9% of its spectrum in a geographic service area to its affiliates.
• Incumbent licensees are present in the band.
• Licensed in 52 Major Economic Areas (MEAs).
• Partitioning and/or disaggregation is permitted.
• Guard Band Mangers are required to file an annual report.